We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Relative Strength Found Within These 3 Medical Stocks
Read MoreHide Full Article
The Zacks Medical sector has displayed relative strength and modestly outperformed the S&P 500 over the last three months, up more than 7% vs. the general market’s 4% gain.
For a quick and easy explanation, relative strength focuses on stocks or other assets that have performed well relative to the market as a whole or a relevant benchmark.
Investors who target stocks displaying relative strength find themselves in favorable trends, no matter the direction of the general market.
Three dividend-paying stocks from the sector – Eli Lilly and Company (LLY - Free Report) , AbbVie (ABBV - Free Report) , and Pfizer (PFE - Free Report) – could all be considerations for investors wanting to tap into the relative strength.
Below is a chart illustrating the performance of all three stocks over the last three months, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
As we can see, all three have outperformed the general market by wide margins over the last several months, indicating positive momentum. Let’s take a deeper dive into all three.
Eli Lilly and Company
Eli Lilly is one of the world’s largest pharmaceutical companies, boasting a diversified product profile that includes a solid lineup of new successful drugs.
LLY’s annual dividend currently yields 1.1%, below that of its Zacks Medical sector average. Still, the company’s 14.6% five-year annualized dividend growth rate picks up the slack in a big way.
Image Source: Zacks Investment Research
LLY has primarily posted better-than-expected earnings as of late, exceeding earnings and revenue estimates in two of its last three quarters. In its latest release, the company registered a slight 0.5% EPS beat paired with a 0.4% sales surprise.
Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
AbbVie
AbbVie is a global research-based biopharmaceutical company that delivers innovative medicines, becoming one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020.
Undoubtedly a major positive, AbbVie is a member of the elite Dividend King group. The company’s annual dividend currently yields an impressive 3.4% paired with a rock-solid 14% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
In addition, the company’s free cash flow growth is hard to ignore; in its latest release, AbbVie reported free cash flow of $7.4 billion, reflecting a 52% sequential increase.
Image Source: Zacks Investment Research
Pfizer
Pfizer is a multinational pharmaceutical and biotechnology corporation headquartered in New York City, well-known for its COVID-19 vaccine.
PFE’s dividend metrics would please any income-focused investor; the company’s annual dividend currently yields 3.1% paired with a 4.5% five-year annualized dividend growth rate.
Further, the company’s 25% payout ratio is very sustainable.
Image Source: Zacks Investment Research
PFE has also posted strong quarterly results as of late, exceeding the Zacks Consensus EPS Estimate by double-digit percentages in back-to-back releases. Just in its latest print, the pharmaceutical titan penciled in a 21% EPS beat paired with a 7.6% sales surprise.
Image Source: Zacks Investment Research
Bottom Line
Targeting stocks displaying relative strength is an excellent way for investors to ride favorable trends.
And over the last three months, all three stocks above – Eli Lilly (LLY - Free Report) , AbbVie (ABBV - Free Report) , and Pfizer (PFE - Free Report) – have all outperformed the general market, displaying inspiring relative strength.
And for the cherry on top, all three companies pay out dividends, limiting drawdowns in other positions and providing a passive income stream.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Relative Strength Found Within These 3 Medical Stocks
The Zacks Medical sector has displayed relative strength and modestly outperformed the S&P 500 over the last three months, up more than 7% vs. the general market’s 4% gain.
For a quick and easy explanation, relative strength focuses on stocks or other assets that have performed well relative to the market as a whole or a relevant benchmark.
Investors who target stocks displaying relative strength find themselves in favorable trends, no matter the direction of the general market.
Three dividend-paying stocks from the sector – Eli Lilly and Company (LLY - Free Report) , AbbVie (ABBV - Free Report) , and Pfizer (PFE - Free Report) – could all be considerations for investors wanting to tap into the relative strength.
Below is a chart illustrating the performance of all three stocks over the last three months, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
As we can see, all three have outperformed the general market by wide margins over the last several months, indicating positive momentum. Let’s take a deeper dive into all three.
Eli Lilly and Company
Eli Lilly is one of the world’s largest pharmaceutical companies, boasting a diversified product profile that includes a solid lineup of new successful drugs.
LLY’s annual dividend currently yields 1.1%, below that of its Zacks Medical sector average. Still, the company’s 14.6% five-year annualized dividend growth rate picks up the slack in a big way.
Image Source: Zacks Investment Research
LLY has primarily posted better-than-expected earnings as of late, exceeding earnings and revenue estimates in two of its last three quarters. In its latest release, the company registered a slight 0.5% EPS beat paired with a 0.4% sales surprise.
Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
AbbVie
AbbVie is a global research-based biopharmaceutical company that delivers innovative medicines, becoming one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020.
Undoubtedly a major positive, AbbVie is a member of the elite Dividend King group. The company’s annual dividend currently yields an impressive 3.4% paired with a rock-solid 14% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
In addition, the company’s free cash flow growth is hard to ignore; in its latest release, AbbVie reported free cash flow of $7.4 billion, reflecting a 52% sequential increase.
Image Source: Zacks Investment Research
Pfizer
Pfizer is a multinational pharmaceutical and biotechnology corporation headquartered in New York City, well-known for its COVID-19 vaccine.
PFE’s dividend metrics would please any income-focused investor; the company’s annual dividend currently yields 3.1% paired with a 4.5% five-year annualized dividend growth rate.
Further, the company’s 25% payout ratio is very sustainable.
Image Source: Zacks Investment Research
PFE has also posted strong quarterly results as of late, exceeding the Zacks Consensus EPS Estimate by double-digit percentages in back-to-back releases. Just in its latest print, the pharmaceutical titan penciled in a 21% EPS beat paired with a 7.6% sales surprise.
Image Source: Zacks Investment Research
Bottom Line
Targeting stocks displaying relative strength is an excellent way for investors to ride favorable trends.
And over the last three months, all three stocks above – Eli Lilly (LLY - Free Report) , AbbVie (ABBV - Free Report) , and Pfizer (PFE - Free Report) – have all outperformed the general market, displaying inspiring relative strength.
And for the cherry on top, all three companies pay out dividends, limiting drawdowns in other positions and providing a passive income stream.