The research firm has four-star ratings on Dow components Johnson & Johnson (NYSE: JNJ) and United Health (NYSE: UNH), two of XLV’s top 10 holdings, as well as the two biotech stocks found among XLV’s top 10 – Amgen (NasdaqGS: AMGN) and Biogen (NasdaqGS: BIIB). [This Healthcare ETF can Climb Some More]
Last month, J&J announced that in the next four years, it expects to submit over 10 new medicines, which could potentially generate $1 billion in annual revenue each, Reuters reports. Later this year, J&J plans to file for approval for the experimental drug daratumumab for multiple myeloma, a type of blood cancer, in the U.S. and Europe. Wells Fargo analyst Larry Biegelsen projects daratumumab sales could hit $1.3 billion by 2019. [Innovators Lift Healthcare ETFs]
J&J “is a Buy recommended stock with an A+ Quality Ranking and AAA credit rating. Jeffrey Loo, S&P Capital IQ head of health care equity research, thinks the stocks remains undervalued on a P/E basis. He noted that in mid-May JNJ said it plans 10 new drug filings through 2019, each with a potential to reach $1B in annual sales. Interestingly to Loo, JNJ says it plans to file for U.S. and European Union (EU) approval for a drug that has breakthrough therapy designation, in double refractory multiple myeloma, by year-end, based on Phase II data it plans to present at a major clinical oncology conference in a few weeks. With these new products, along with recently approved drugs, JNJ believes its drug sales will grow above industry average, at least through 2019. JNJ, which sports a 3.0% yield, raised its dividend 7% in April,” according to S&P Capital IQ.
Health Care Select Sector SPDR
