The company completed a $69 billion purchase of health care provider Aetna in November of 2018 and remains one of the top picks for 2022. CVS has become one of the most vertically integrated publicly traded health care companies, and health care has lagged the S&P 500 significantly this year.
CVS Health stock investors receive a 2.18% dividend. The $127 UBS price target compares with a consensus target of $120.14 and the most recent close at $100.33.
Eli Lilly
This is another large-cap pharmaceutical with solid upside potential, and it is a great pick for conservative investors. Eli Lilly and Co. (NYSE: LLY) is a global health care company with numerous core products in a number of primary-care pharmaceutical markets. The company generates revenues from its pharmaceutical product and animal health segments.
The product portfolio includes Zyprexa (for schizophrenia and bipolar disorder), Gemzar (pancreatic cancer), Evista (osteoporosis), Cymbalta (depression), Cialis (erectile dysfunction), Strattera (attention deficit hyperactivity disorder), Erbitux (cancer) and Alimta (chemotherapy). Eli Lilly also has a strong presence in the diabetes market.
Shareholders receive a 1.24% dividend. Morgan Stanley recently raised its price target to a Wall Street high of $395. The consensus target is $304.28. Eli Lilly stock ended Monday trading at $310.15 a share.
Gilead Sciences
This stock is trading a very reasonable 9.05 times estimated 2022 earnings and has big-time upside potential. Gilead Sciences Inc. (NASDAQ: GILD) is a research-based biopharmaceutical company that discovers, develops and commercializes medicines in the areas of unmet medical need in the United States, Europe and elsewhere.
The company provides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/Eviplera, Stribild and Atripla products for the treatment of human immunodeficiency virus (HIV) infection; Veklury, an injection for intravenous use, for the treatment of coronavirus disease 2019; and Epclusa, Harvoni, Vosevi, Vemlidy and Viread for the treatment of liver diseases. It also offers Yescarta, Tecartus, Trodelvy and Zydelig products for the treatment of hematology, oncology and cell therapy patients.
In addition, Gilead provides Letairis, an oral formulation for the treatment of pulmonary arterial hypertension; Ranexa, an oral formulation for the treatment of chronic angina; and AmBisome, a liposomal formulation for the treatment of serious invasive fungal infections.
Investors take a 4.68% dividend to the bank every quarter. Royal Bank of Canada’s $77 price objective is one of the highest on Wall Street. The consensus target on Gilead Sciences stock is $69.17, and Monday’s closing print of $62.45.
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