2 Stocks to Help You Build a Healthy Portfolio for the Long Term
Amid consecutive federal rate hikes and rising recession odds, broader markets have witnessed substantial losses in 2022. The S&P 500 has lost 16.1% year-to-date, while the Dow Jones Industrial Average has lost 6.6%.
However, the U.S. job market remains resilient enough. Nonfarm payrolls increased by 263,000 in November, surpassing consensus estimates of 200,000. Mizuho economists Alex Pelle and Steven Ricchiuto said, "It suggests that the economy is resilient and can handle more rate hikes and restrictive policy for longer."
Moreover, October's personal consumption expenditures price index report presented inflation at a 6% annual rate, down from 6.3% in September. Despite the market turbulence, investors should stay invested and focus on their long-term strategies.
Therefore, investors could consider adding quality stocks Pfizer Inc. (PFE) and Agilent Technologies, Inc. (A) to build a healthy portfolio for the long term.
Pfizer Inc. (PFE)
PFE discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers medicines and vaccines in various therapeutic areas.
On December 1, 2022, PFE and Roivant Sciences Ltd. (ROIV) announced the formation of a new Vant to co-develop and commercialize RVT-3101. This fully human monoclonal antibody is slated to be the first to introduce biomarker-selected precision medicine against inflammatory bowel disease.
Also, on November 3, 2022, PFE's investigational cancer immunotherapy, elranatamab, received Breakthrough Therapy Designation from the U.S. Food and Drug Administration for treating people with relapsed or refractory multiple myeloma.
PFE's breakthrough medicinal discoveries are expected to fortify the company's portfolio.
PFE has paid dividends for 33 consecutive years. Its dividend payouts have increased at a 5.7% CAGR over the past five years. Its current dividend yield is 3.15%, and its four-year average yield is 3.63%.
PFE's U.S. revenues came in at $13.85 billion for the third quarter that ended October 2, 2022, up 97.3% year-over-year. Its non-GAAP net income came in at $10.17 billion, up 39.7% year-over-year, while its non-GAAP EPS came in at $1.78, up 40.2% year-over-year.
PFE's revenue is expected to increase 23.3% year-over-year to $100.27 billion in 2022. Its EPS is expected to increase 46.4% year-over-year to $6.47 for the same period. It surpassed EPS estimates in all four trailing quarters. Over the past month, the stock has gained 7.4% to close the last trading session at $50.73. It has gained 108.9% over the past ten years.
PFE's POWR Ratings reflect its promising outlook. It has an overall A rating representing a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
PFE has an A grade for Value and a B for Growth, Sentiment, and Quality. It is ranked #2 out of 162 stocks in the Medical – Pharmaceuticals industry. Click here to see the additional POWR Ratings for PFE (Momentum and Stability).
Agilent Technologies, Inc. (A)
A provides application-focused solutions worldwide to the life sciences, diagnostics, and applied chemical markets. Its segments are Life Sciences and Applied Markets; Diagnostics and Genomics; and Agilent CrossLab.
On December 5, 2022, A announced the opening of a new Customer Experience Center in Lexington, with solutions focussed on A's genomics and diagnostics product portfolios.
Sam Raha, president of A's Diagnostics and Genomics Group, said, "The Agilent genomics and diagnostics customer base continues to expand, and we are committed to supporting their success through hands-on and virtual training experiences."
A has paid dividends for ten consecutive years. Its dividend payouts have increased at 9.7% CAGR over the past five years. Its current dividend yield is 0.59%, and its four-year average yield is 0.70%.
A's net revenue came in at $1.85 billion for the fourth quarter that ended October 31, 2022, up 11.4% year-over-year. Its income from operations came in at $471 million, up 19.2% year-over-year.
A's revenue is expected to increase by 2.1% year-over-year to $6.99 billion in 2023. Its EPS is expected to grow 8.4% year-over-year to $5.66 in 2023. It surpassed EPS estimates in all four trailing quarters. Over the past month, the stock has gained 12.2% to close the last trading session at $152.70. Over the past ten years, the stock has gained 452.4%.
A’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, equating to a Strong Buy in our proprietary rating system.
It has an A grade for Sentiment and a B for Growth, Stability, and Quality. It is ranked first among 51 stocks in the Medical - Diagnostics/Research industry.
Beyond what is stated above, we've also rated A for Value and Momentum. Get all A's ratings here.
PFE shares were trading at $50.30 per share on Tuesday morning, down $0.43 (-0.85%). Year-to-date, PFE has declined -12.05%, versus a -15.53% rise in the benchmark S&P 500 index during the same period.