Based on its earnings report, Pfizer (PFE) raised estimated sales of its Covid-19 vaccine to $33.5 billion for 2021, reflecting a 30% increase as Delta sweeps through nations, reports The Wall Street Journal. The biopharmaceutical giant is one of many major players reporting profitable earnings for the last quarter as these mega-caps continue to outperform.
Pfizer Takes Its Shot
Reporting in on last quarter, Pfizer recorded $7.8 billion in vaccine sales, nearly half of its overall total sales of $18.98 billion and beating forecasted total sales. Currently, the biopharmaceutical giant is up 92% year-over-year in revenue.
As Delta spreads globally and new concerns of contagion shake markets, Pfizer continues producing and providing a core number of vaccinations distributed and administered globally. Of the 163 million Americans who are fully vaccinated, over half, 87 million, were vaccinated with the vaccine co-developed between Pfizer and BioNTech SE (BNTX), reported the CDC.
Chart Courtesy of the Covid Data Tracker on the CDC website
With case counts rising, the mRNA-based vaccine continues to protect against serious illness and death with Delta. As new guidelines roll out from the CDC, recommending that all people wear masks, including vaccinated individuals when indoors, discussions turn to booster shots for those fully vaccinated for future variants.
As the economy reopened, more Americans returned to the health care system, as reflected in Pfizer’s other reported revenue streams. Internal medicine sales were up 5% at $2.4 billion, and sales from Prevnar 13, a vaccine for pneumococcal disease, that was up 34% as children’s wellness visits increase in number again. Oncology sales also grew 19% to $3.15 billion.
Following In the Footsteps of Giants with ‘USMC’
As market cap giants such as Pfizer continue to report positive earnings, investors can look to the Principal U.S. Mega-Cap ETF (USMC) to expose the biggest players within their industries.
USMC tracks the Nasdaq US Mega Cap Select Leaders Index, a modified equal-weighted index.
The smart beta index takes the top half of securities on the Nasdaq US 500 Large Cap Index and divides the top 10% of companies by market value from the bottom 90%. The top 10% companies are weighted by market value, while the bottom 90% are equal-weighted and tilted toward those firms with less volatility.
The index is rebalanced semi-annually, though securities that become ineligible for the index between balancing periods are removed without being replaced.
As a smart beta ETF, USMC’s benchmark seeks to provide optimal outcomes on downturns and to capitalize on surges while minimizing exposure to volatility.
USMC is currently comprised of 48 holdings. By weight, the top five holdings are Apple (AAPL) at 6.08%, Pfizer (PFE) at 3.31%, PepsiCo (PEP) at 3.18%, Berkshire Hathaway (BRK.B) at 3.13%; and McDonalds (MCD) at 3.13%.
USMC generally limits its sector and industry concentrations to no more than 25% of the portfolio. Currently, the fund has 25.44% of its portfolio allocated to technology, 21.76% to healthcare, 14.55% to communication services, and 13.98% to financial services.
The ETF carries an expense ratio of 0.12%.
For more news, information, and strategy, visit the Nasdaq Portfolio Solutions Channel.