Leading vaccine manufacturers such as Eli Lilly and Co. New York Stock Exchange: LLIPfizer Inc. New York Stock Exchange: PFEand AstraZeneca plc. NASDAQ: AZN it may have faded from view since the peak of the COVID-19 pandemic, but there is now reason to expect renewed interest. As investors await a second Trump administration, the new president’s appointment of outspoken vaccine critic Robert F. Kennedy Jr. as U.S. Secretary of Health and Human Services has refocused attention on the future of these companies and their role in the broader context. pharmaceutical and medical industries.
It is too early to determine any specific federal policies for 2025 (or beyond) that could impact these companies. However, some analysts have speculated that the administration could limit access to the vaccines or even ban them entirely, creating a difficult situation for these firms.
Given this evolving environment, now is the time for investors to consider the strengths and opportunities presented by Eli Lilly, Pfizer and AstraZeneca. Here’s why these companies remain attractive investment options:
Eli Lilly: Impressive product list, pullback due to lower forecasts
Eli Lilly and company today
Eli Lilly and company
(As of 11/27/2024 ET)
- 52 week range
- $561.65
▼
$972.53
- Dividend yield
- 0.66%
- P/E ratio
- 85.21
- Target price
- US$1007.94
Of the three largest vaccine companies listed above, Eli Lilly has performed best over the past year. LLY shares have risen by almost a quarter in that time, and by a shocking 543% over the past five years. Eli Lilly’s rapid growth is driven by its broad and diverse roster of leading pharmaceutical products, including Trulicity and Mounjaro (diabetes treatments), as well as Prozac and Cymbalta (clinical depression treatments), among many others.
In particular, Eli Lilly’s Mounjaro and Zepbound—both with the active ingredient tirzepatide to treat diabetes and weight loss—are in high demand despite growing competition from companies like Hims & Hers Health Inc. New York Stock Exchange: HIMS. In the most recent quarter, volume growth for these two products contributed to a 20% year-over-year increase in revenue. Eli Lilly’s upcoming product line is also impressive. It recently received FDA approval for Ebglyss, a treatment for moderate to severe atopic dermatitis, and approval in Japan for Kisunla, a treatment for early symptomatic Alzheimer’s disease.
Eli Lilly stock forecast and company today
US$1007.94
Growth potential 27.85%Moderate purchase
Based on ratings from 21 analysts
| High forecast | US$1250.00 |
|---|---|
| Average forecast | US$1007.94 |
| Low forecast | $723.00 |
Eli Lilly stock forecast details and company
Despite overall growth over the past year, LLY shares are down about 16% over the past month after the company cut its full-year earnings per share forecast and the top end of its revenue forecast for the same period.
However, the downgrade is a result of inventory management and ongoing research and development costs, rather than a fundamental change in the company’s business.
This means this could be an opportunity to buy LLY stock at a relatively bargain price.
Pfizer: Sale could open up new opportunities
Pfizer makes one of the most popular COVID-19 vaccines in the United States, so it’s no surprise that the company’s shares are down 10.4% over the past month, especially since the election. However, the company’s share price has been extremely volatile throughout the past year, and is currently down about 16% during this period.
Pfizer stock forecast today
$32.92
Growth potential 27.46%Moderate purchase
Based on ratings from 16 analysts
| High forecast | $45.00 |
|---|---|
| Average forecast | $32.92 |
| Low forecast | US$25.00 |
Pfizer stock forecast details
One positive is that the Pfizer stock sell-off has made the stock a better value proposition. As of November 25, Pfizer’s forward P/E ratio is just 8.8, which is significantly lower than Eli Lilly (56.5) and AstraZeneca (16.2). Pfizer also has a competitive price-to-book ratio of 1.54.
Analysts also continue to see long-term potential for the company after a possible interim period of volatility, rating the stock a Moderate Buy and assigning a consensus price target of $32.92, more than 28% above current levels.
AstraZeneca: Rising demand for oncology products drives growth
AstraZeneca stock forecast today
$89.75
Growth potential 33.56%Moderate purchase
Based on ratings from 12 analysts
| High forecast | $97.00 |
|---|---|
| Average forecast | $89.75 |
| Low forecast | $82.00 |
AstraZeneca stock forecast details
AstraZeneca beat analysts’ earnings per share estimates for the latest quarter thanks to rising demand for some of its oncology products, including Imfinzi and Calquence. These treatments are critical to addressing critical needs in cancer treatment, strengthening AstraZeneca’s position as a market leader.
Based on this momentum, the company raised its full-year guidance for total revenue and core earnings per share growth, reflecting confidence in its current results and future prospects. AstraZeneca’s strong product pipeline matches its portfolio, with analysts expecting the company to launch as many as two dozen new products by the end of the decade.
AstraZeneca shares are currently rated a Moderate Buy with a consensus price target of $89.75, suggesting upside potential of nearly 37% from current levels.
Biotech leaders beyond vaccines
As vaccine policy changes under the new Trump administration, Eli Lilly, Pfizer and AstraZeneca are well positioned to navigate uncertainty and capitalize on their strengths. If you’re considering investing in biotech, you can take comfort from stocks that aren’t overly reliant on vaccines for continued earnings growth—and all three of these companies have fast-growing segments completely unrelated to vaccines.
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