Pharmaceutical Stocks to Buy in 2021
Published: March 27, 2021 by Andrew
The pharmaceutical industry has become very popular recently for obvious reasons. But it’s not just the vaccine rush that has triggered this wave of investor interest in pharmaceutical stocks, the sector is very profitable and experts know it well.
In this guide we will see what makes these stocks so interesting and how to invest in safety, even without the assets available.
Let’s start immediately by answering a question that is frequently asked:
How do you buy pharmaceutical stocks? Here are the steps you need to follow:
- Register with a CFD Broker like eToro
- Check that it offers CFDs from the pharmaceutical companies you are interested in
- Evaluate how much to invest and place the order on the market
Below you will find a list of the best online trading platforms on the market, they are reliable and regulated brokers, you can choose in total safety:
Min. Deposit: 200€
Min. Deposit: 400€
Min. Deposit: 10€
Min. Deposit: 100€
Buy and sell CFD
Min. Deposit: 100€
Min. Deposit: 250€
Min. Deposit: 250€
Min. Deposit: 250€
Pharmaceutical Stocks to buy
Buying pharmaceutical shares means investing in research, patents and the future of medicine, but also taking risks, because not all companies in the sector know how to manage money as they manage test tubes.
While the pharmaceutical stocks of companies involved in manufacturing a Covid-19 vaccine are very promising at the moment, remember that there are diseases that won’t go away that easily and the companies that fight them can offer long / very long-term returns.
We are talking, for example, of hypertension, cancer and Alzheimer’s, which will continue for a long time (unfortunately) to require drugs.
How to Buy Pharmaceutical Stocks
Let’s see now how to buy pharmaceutical stocks, in this way you will be ready to invest in the most promising stocks in the sector.
You can open a securities account at your bank, incur opening costs, pay stamp duty and commissions for each transaction performed.
Or you can use CFD Brokers, intermediaries that allow you to negotiate Contracts for Difference, do not need a securities account, do not pay stamp duty and do not pay trading commissions.
Not only that, these online brokers allow you to aim both upwards and downwards, making it much easier to follow market fluctuations.
Where to Buy Pharmaceutical Stocks
If you are interested in learning more about CFD Brokers, which thanks to their simplicity and convenience make trading really affordable for everyone, you must not underestimate the safety factor.
To buy pharmaceutical shares or any other stock you need a reliable broker, who has at least a license issued by an entity such as CONSOB or CySEC.
Forget illegal brokers, they are dangerous and could hide trading scams.
In this guide we have listed only safe and licensed brokers, so you can choose freely.
To buy pharmaceutical stocks, the most suitable brokers (in our opinion) are: eToro, ForexTB and Trade.com.
Let’s see in detail their main characteristics:
eToro is certainly the most popular online broker in the world, both for the over 10 million members it can boast, and for the numerous licenses it has obtained in the countries in which it operates, among which there is also the authorization of our CONSOB .
The trading platform offered by eToro is considered very intuitive, simple to use but full of professional indicators and tools.
But how do you buy pharmaceutical stocks with eToro?
- Register for free on eToro
- Log into your Demo or real account (by depositing at least € 200)
- Select the CFD of the stock you are interested in and click on “Trade”
- Decide whether to buy or sell the shares and how much to bet in the operation
If you don’t like studying charts and elaborating complicated strategies, eToro offers you the possibility to copy the market operations of the best traders in the community.
This system is automatic and is called Copy Trading. You choose the traders to copy and Copy Trading will copy the trades of the chosen traders to your account.
In this way you will get the same returns as the copied traders, here are some examples to get you an idea:
Click here and choose which trader to copy
ForexTB has achieved great success in recent years also thanks to a Trading Course it has created, which has become the most downloaded in the sector.
This ebook explains the basic rules of online trading and the best investment strategies. It is also free and to download it just use the link below:Click here and download the Trading Course for free
ForexTB is a very reliable broker, which has managed to obtain the prestigious CySEC license, valid throughout Europe.
To facilitate the investments of all traders, ForexTB offers two very different but free platforms, which intercept the various needs:
- The Web Platform is simple, intuitive, fast and accessible from any device, without installing anything.
- Metatrader, on the other hand, is much more professional, complete and full of indicators of all kinds.
But how do you buy pharmaceutical stocks on ForexTB? Follow these 4 steps, it’s simple:
- Register on ForexTB
- Choose the trading platform
- Select the CFD of the stock you are interested in and click on Buy (or on Sell to sell short)
- Decide the amount to invest.
Trade.com immediately won the trust of novice investors by offering them the opportunity to open a trading account with only 100 euros.
This figure does not change the level of security proposed by this Broker, which is regulated by CONSOB.
How do you buy pharmaceutical stocks on Trade.com?
- Register for free on Trade.com
- Log into your Demo or real account (by depositing a minimum of € 100)
- Select the CFD of the stock you are interested in and click on “Buy” to buy or “Sell” to sell short
- Decide how much to invest in the operation.
If you want to deepen the rules of technical analysis and learn the most profitable trading strategies, Trade.com has made available a very detailed Trading Course.
This pdf allows you to learn the basics of trading in a simple way, offering a clear language without the usual technicalities.
The course is free, here is the link to download it:Download the Trading Course for free by clicking here
Pharmaceutical Stocks to Buy
Pharmaceutical companies research, develop, manufacture and distribute drugs around the world. Among these there are some very interesting realities not only from a medical point of view but also from a financial point of view.
In this list we have collected the best pharmaceutical stocks to buy this year.
Abbvie is an American multinational derived from Abbott, which operates in the biopharmaceutical sector with great success.
It has been preventing dividend increases for 49 consecutive years and has been growing steadily for several years.
Although it will lose patent protection for its flagship drug Humira in 2023, long-term growth is also expected for the stock.See Abbvie's live quote
Amgen did not jump into the limelight for innovative coronavirus vaccines but moved corporately by acquiring Five Prime Therapeutics for $ 1.9 billion, thereby improving its profitability from Five’s specialty cancer drugs.
In 2019 it had already acquired a stake in another pharmaceutical company specializing in the sector, the Chinese BeiGene.
Amgen is currently one of the best positioned pharmaceutical companies to fight cancer, and the shares are definitely undervalued at the moment.See Amgen's live quote
AstraZeneca is in a very turbulent phase due to delays in the supply of the vaccine to the countries that have requested it.
In addition, there are possible problems related to the side effects of the vaccine, which even if they have been widely denied, can affect the titer, especially in the short term.
But over the long term, AstraZeneca remains one of the biggest potential pharmaceutical stocks ever, especially after the $ 39 billion acquisition of Alexion Pharmaceuticals in late 2020.See AstraZeneca's live quote
Bristol-Myers Squibb Co.
Continuing with the international pharmaceutical giants, we could not fail to mention Bristol-Myers Squibb among the pharmaceutical shares to buy.
This giant has completed the $ 74 billion acquisition of the fast-growing biotech firm Celgene.
Bristol-Myers appears to see significant revenue and profit gains from this deal, which did not happen in a period of industry lull.
The $ 140 billion drug maker has the size and capacity to thrive in the long term,See the Bristol-Myers live quote
Gilead Sciences is not a colossus like its predecessors but in its field it has few rivals and this in the pharmaceutical sector is a huge advantage.
GILD’s Biktarvy drug is one of the best HIV treatments in the United States and this leadership will be difficult to undermine.
To all this we must add Veklury, the first drug approved by the United States Food and Drug Administration for the treatment of Covid-19.
Ultimately Gilead has what it takes to generate long-term profits.See the Gilead Sciences real-time quote
Johnson & Johnson
Johnson & Johnson as you know is not just a pharmaceutical company but a giant that spans various sectors.
This makes it a very difficult company to counter, which plays many games at the same time and has the money and the skills to play them at their best.
The recent approval of its single-dose vaccine against Covid-19 has also given a further boost to the stock on the stock exchange, improving short and long-term forecasts.
JNJ is one of two S&P 500 companies, along with tech giant Microsoft, to have a perfect AAA rating, confirmed by $ 25 billion in cash at its disposal.See Johnson & Johnson's live quote
Novartis has not started very well this year but its drugs have great potential and now there are already the first signs of recovery that everyone is expecting.
The drug Kesimpta is an injectable treatment for multiple sclerosis with high profit margins and Leqvio is a valid treatment for high cholesterol, which is very popular worldwide.
We can consider without fear of being proven wrong, Novartis among the undervalued stocks of the pharmaceutical sector.See the Novartis real-time quotation
Sanofi, is based in France and is not at the level of the American giants but is a true European excellence.
It is a global pharmaceutical company that has products for the treatment of a wide range of diseases including rheumatoid arthritis, cancer, diabetes and rare blood diseases.
While SNY may not be the first choice among pharmaceutical stocks to buy this year, it shouldn’t be underestimated, it offers income and stability and low risk for investors.See Sanofi's live quote
Takeda Pharmaceutical Co.
Takeda is a Japanese pharmaceutical company, often off the radar of investors who only look to the US but is worth keeping an eye on.
It is the largest pharmaceutical company in Asia by turnover and one of the top 20 in the world.
It makes drugs for many diseases and can compete with the US giants practically on a par. This undoubtedly places it among the pharmaceutical actions to be followed carefully in the medium / long term.See Takeda's live quote
Buy Pharmaceutical Stocks Conclusions
In this guide we have explained why pharmaceutical stocks are so important to investing and what makes them critical to a good diversified portfolio.
We have also seen how to buy pharmaceutical stocks without paying commissions and which stocks to follow carefully and on which to evaluate a short or long-term investment.
Demand is critical for any industry to grow and demand for drugs is growing all over the world, so you should consider these stocks, they can offer stable returns for a long time.
To invest in pharmaceutical stocks you need reliable and possibly commission-free brokers, which is why we have recommended CFD brokers in this guide.
Once you feel ready to invest seriously, just make a small deposit into your account and move on to real investments in the selected pharmaceutical stocks.
Here are the links to the Demo accounts of the best brokers on the market:
- Access the eToro Demo account for free by clicking here
- Log in to ForexTB and try the Demo account by clicking here
- Register on Trade.com and try the Demo account by clicking here
Not all pharmaceutical stocks, obviously there are very profitable stocks and others that can generate losses but in principle it is a sector with ever-increasing demand, which can offer excellent returns in the short and long term.
You need to choose companies with solid fundamentals and excellent growth prospects. In our guide we have included the best pharmaceutical stocks to bet on.
It depends, there are growing companies and others in crisis even among those that make vaccines, so evaluate individual pharmaceutical stocks and do not be influenced by the media.
CFD brokers like eToro offer the possibility to invest safely and without paying commissions, so they represent a very convenient choice.