2 Great Pharma Stocks to Buy in the Next Market Crash
AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) are stable giants in the pharmaceutical industry. Both companies have an extensive array of products on the market, not to mention plenty of promising drugs in development. Between their attractive dividend yields in excess of 4% and their steady long-term growth potential, there's a lot to like about these stocks.
Neither company is perfect, however. Both have underperformed the market over the past five years. Gilead's profit margin is currently negative, and its quarterly revenues shrank by 9.5% year over year. AbbVie, while profitable, has taken on a tremendous $87.5 billion in debt, and it may not have enough cash on hand to cover its short-term debt obligations. These issues should give investors pause at today's price level.
But, when we explore the two stocks a bit more, we'll find that these problems are likely transient in nature, meaning that a market crash could set up the opportunity for larger returns than we'd otherwise expect.
Source Fool.com
