|Bid||17.94 x 1000|
|Ask||18.63 x 4000|
|Day's Range||17.68 - 18.61|
|52 Week Range||16.63 - 39.59|
|Beta (3Y Monthly)||2.09|
|PE Ratio (TTM)||303.77|
|Earnings Date||Nov 4, 2019 - Nov 8, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||27.65|
Although the market's near-7% setback suffered since its late-July high is neither devastating nor unusual, it has certainly been frustrating all the same. Many investors who were lured into the idea of "chasing performance" ended up being punished for doing so, even with Tuesday's bounce.The selloff isn't necessarily a reason to throw in the towel altogether though. Indeed, for income-minded investors willing to forego some excitement in the name of consistency will find the marketwide weakness has up-ended even some of the highest-quality dividend stocks. Many of these names can not only be purchased at below-average valuation, but at above-average yields. Your return on these cheap stocks to buy is based on your entry price. * 15 Growth Stocks to Buy for the Long Haul To that end, here's a rundown of ten dividend stocks to buy while the market's bearish tide has made them too cheap to ignore. They may not be at their absolute bottom yet, but they've given up far more ground than they ever should have been allowed to give up.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cheap Dividend Stocks to Buy: Pfizer (PFE)Source: Kojach Via FlickrDividend Yield: 3.96% Forward Price-to-Earnings Ratio: 12.6Pfizer (NYSE:PFE) can be considered cheap for one simple reason. That is, it's down nearly 20% year-to-date, reaching a 14-month low on Monday.The most recent portion of that weakness stems from the decision to sell its "off-patent" Upjohn division to rival drugmaker Mylan (NASDAQ:MYL), though clearly investors were losing interest -- and faith -- in PFE stock well before that announcement was made late last month. The expiration of key patents on blockbuster drug Lyrica has also weighed on investors' minds, as has a broad uncertainty over which piece of the healthcare market will bear the bulk of the burden for lowering costs.The doubters may have overshot their target though. Pfizer is now yielding 3.96%, and trades at only 12.6 times its (pre-spinoff) 2020 earnings. Chemours Co (CC)Source: Shutterstock Dividend Yield: 8% Forward P/E: 2.9The bulk of the recent weakness Chemours Co (NYSE:CC) shares have demonstrated reflects a potential legal liability related to its manufacture of perfluorochemicals (PFAs) which are used to make, among other things, Teflon cookware.The company's woes go well beyond that one stumbling block though. North America's titanium dioxide market is also running into a headwind, hitting Chemours in where it hurts the most. Its fiscal second-quarter titanium dioxide fell 35% year-over-year. * 10 Stocks Under $5 to Buy for Fall The worst-case scenario may well be fully priced in, however. Although this year is set to be a tough one, analysts are modeling an 11% turnaround in next year's revenue, prompting a sizeable recovery of this year's 52% earnings decline. The stock's yielding 8% in the meantime, on a dividend the company makes a point of paying if at all possible. AES (AES)Source: Shutterstock Dividend Yield: 3.6% Forward P/E: 10.6The second-quarter report from utility name AES (NYSE:AES) was anything but thrilling. Not only did income of 26 cents per share fall short of the 27 cents per share analysts were expecting, revenue was down a little more than 2%.The subsequent pullback added to an existing selloff. AES stock is now down nearly 17% from its March high, as the market seeks to right-price this otherwise reliable player in an unclear interest rate environment.For the most part, investors are forgetting that while it's not a high-growth vehicle, like most utility names, this one's rather well shielded from economic ebbs and flows that could disrupt its dividend … a dividend that has not failed to grow in any year since 2013. Molson Coors Brewing (TAP)Source: Drew Stephens via FlickrDividend Yield: 4.4% Forward P/E: 11.8For a handful of reasons, Molson Coors Brewing (NYSE:TAP) has been unable to restore its former greatness. The name behind not just Coors and Molson, but brands like Blue Moon, Ice House and Miller, just hasn't resonated with consumers like it did in the past. Beer drinkers are now opting for something else, particularly in the United States where it desperately needs to thrive. * 10 Real Estate Investments to Ride Out the Current Storm The full extent of the headwind may have already done all the damage it could do though. Next year's sales should essentially be flat, and the earnings decline is finally expected to abate; 2020's projected income of $4.48 per share is only a tiny fraction better than this year's likely bottom line of $4.45. But, that's enough (and then some) to fund the dividend going forward. It has only paid out $1.63 over the course of the past four quarters. The Carlyle Group (CG)Source: Shutterstock Dividend Yield: 6.5% Forward P/E: 8.7Technically speaking it's not a stock. Nevertheless, The Carlyle Group (NASDAQ:CG) has earned a spot on a list of cheap dividend stocks to buy because the yield of 6.5% is well above the market's average at this time. The S&P 500, for perspective, is yielding right around 1.9%.The Carlyle Group is usually categorized as an asset management outfit, although that's not quite what it does. The organization is a private equity and business-development player. It owns equity in, lends money to or outright owns smaller companies that may not otherwise be accessible to investors through a publicly-traded instrument.It's a structure that's ideal for dividend payments. Inasmuch as its portfolio of companies don't have public shareholders themselves, these businesses can be managed first and foremost with cash flow in mind. Seagate Technology (STX)Source: Shutterstock Dividend Yield: 5.6% Forward P/E: 9.3Much like its peer Micron Technology (NASDAQ:MU), in 2018 Seagate Technology (NASDAQ:STX) found itself to be a victim of a glut it helped create. With an exaggerated response to demand at the time, chip manufacturers ramped up their output of volatile memory (RAM) as well as data-storage drives that largely destroyed their pricing power.That glut finally appears to be abating. Although just barely, prices for NAND and DRAM have stopped falling, and have begun logging higher highs. * 7 Education Stocks to Buy for the Future of Academia Micron is certainly a bargain too, now that there's a light at the end of the tunnel. Seagate Technology is the better dividend name, however, yielding 5.6% and priced at less than ten times next year's expected earnings. Cardinal Health (CAH)Source: Via WikimediaDividend Yield: 4.4% Forward P/E: 8.6Cardinal Health (NYSE:CAH) is a supplier of all sorts of solutions to the healthcare industry. From pharmaceuticals to surgical supplies to services that help hospitals better manage operations like billing and reimbursement, the well-established company keeps caregivers in action.The non-cyclical nature of the business doesn't mean the company doesn't face competition and headwinds though. Indeed, CAH stock has been cut in half since its early 2015 high, reaching new multi-year lows last week. Its performance has been so bad, in fact, that frustrated shareholders are now prepping class-action suits.In the midst of that frenzied doubt is when CAH stock could be most trade-worthy, however. It just topped its quarterly-earnings expectations, earning $1.11 versus estimates of only 93 cents. And the pros are calling for an earnings rebound this year. AT&T (T)Source: Shutterstock Dividend Yield: 5.9% Forward P/E: 9.6AT&T (NYSE:T) took its eye off the ball in 2016. Admittedly, the long-belabored effort to acquire Time Warner was distracting, but the telecom giant's woes weren't just related to that difficult deal. Its DirecTV acquisition has created more problems than profit, and the company seemingly became complacent with its position as the No. 2 wireless provider in the United States.There's a reason T stock is up almost 30% from its late-December low, however, snapping out of a long-standing downtrend in the process. And, Time Warner isn't a core part of the bullish rationale. Investors are starting to realize what the advent of 5G could mean for the telecom market, and for AT&T in particular. * 10 Stocks Under $5 to Buy for Fall As Will Healy put it last week, "the 5G network that burdened the company for years may soon give AT&T a level of pricing power not seen since its days as a monopoly. Moreover, even if T stock stagnates in the near-term, investors can collect a generous, increasing dividend." Ryder System (R)Source: Shutterstock Dividend Yield: 4.4% Forward P/E: 8.3Most investors will recognize the name Ryder System (NYSE:R) as the company that rents moving vans and self-driven trucks to consumers, and that's certainly a key part of its business. The company is so much more than that, however. Ryder also arranges for long-term corporate leases of heavy haulers, offers fleet maintenance services and will even manage the delivery aspect of a supply chain for its customers.It's anything but a recession-proof business. And, with the economy seemingly slowing down against a backdrop of never-ending tariff chatter, R stock doesn't feel like the safest name to own.With a yield of 4.4% and the equally good chance that the global economy is going to be rekindled by an eventual end to the tariff war though, Ryder System is arguably too cheap to pass up at less than nine times next year's expected earnings. Citigroup (C)Source: Shutterstock Dividend Yield: 3.1% Forward P/E: 7.8Finally, add Citigroup (NYSE:C) to your list of dividend stocks to buy sooner rather than later.Yes, it certainly appears to be in the wrong place at the wrong time. Lower interest rates make the business of lending money less profitable by compressing the spread between its costs of capital and what it's able to charge borrowers. And, two weeks ago the big bank confirmed it … its reducing its base lending rate by a quarter of a percentage, from 5.5% to 5.25%. The move impacted all new loans made since Aug. 1.The assumptions about the depth of the impact may be overblown though. Even as he was explaining the rationale for last month's quarter-point rate cut, Federal Reserve Chairman Jerome Powell was already cautioning that the FOMC reserves the right to ramp up rates again if it sees any hint of unchecked inflation. Reading between the lines, it's a subtle clue that the Fed doesn't want to cut rates again when it will have a chance to in September. * 7 5G Stocks to Buy Now for the Future All the worst possible news may already be priced into C stock, and more.As of this writing, James Brumley held a long position in AT&T. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post 10 Cheap Dividend Stocks to Load Up On appeared first on InvestorPlace.
Drug company shares tanked on Wednesday after two leading Democratic lawmakers sent letters to two public drug manufacturers, restarting their 2014 inquiry and accusing the companies of stonewalling.
Citing a lawsuit by Connecticut's attorney general and others, the lawmakers claimed Mylan and other drug manufacturers conducted a price-fixing scheme and obstructed Congress' 2014 investigation into the alleged price fixing.
The U.S. Food and Drug Administration has approved TB Alliance's treatment for drug-resistant tuberculosis as part of a three-drug combination regimen called BPaL, the not-for-profit said on Wednesday. The decision comes two months after a panel of advisers to the FDA voted 14-4 in favor of the drug, pretomanid, in combination with linezolid and Johnson & Johnson's bedaquiline for multi-drug resistant tuberculosis (MDR-TB) and extensively drug-resistant tuberculosis (XDR-TB).
(Bloomberg) -- Senator Bernie Sanders and Representative Elijah Cummings are opening an investigation into generic-drug giants Mylan NV and Teva Pharmaceutical Industries Ltd. on allegations of “apparent coordinated obstruction” in failing to provide lawmakers with details about their pricing practices.Sanders, an independent from Vermont who is running for the Democratic nomination for president, and Cummings, a Democrat from Maryland, sent letters to Teva and Mylan as well as closely held Heritage Pharmaceuticals Inc. The letters renewed a 2014 request for the companies to provide documents related to charges of generic-drug price-fixing.The two companies have been at the center of state and federal probes into allegations that generic-drug companies coordinated with one another on setting prices for a range of widely used medications.Lawsuits filed by state attorneys general in 2016 and this year allege a conspiracy among 20 drugmakers to carve up the market and raise prices of more than 100 drugs including commonly prescribed antibiotics as well as medications for reducing cholesterol and controlling seizures. Those actions, authorities allege, cost taxpayers and patients billions of dollars. The prices of some drugs increased by as much as 8,281% between October 2013 and April 2014, according to the lawmakers’ letter made public on Wednesday.The most recent lawsuit included emails from 2014 in which executives at Teva, Mylan and Heritage planned to respond to congressional inquiries with “polite f-u” letters.“Not only did your company’s apparent obstruction undermine our investigation, but it may have caused further harm to patients and health care providers by delaying the discovery of evidence about the companies’ price-fixing,” Sanders and Cummings wrote to the companies on Tuesday. They said withholding or concealing information in a congressional investigation is a violation of federal law.Teva spokeswoman Kelley Dougherty said the company will “continues to cooperate fully with all investigations.”Mylan, which recently announced plans to combine its business with Pfizer Inc.’s unit of older blockbuster medicines, said in a statement that it did not obstruct the 2014 congressional inquiry, and “will continue to cooperate” with investigations.“Mylan respects Congress’s long-standing interest in drug pricing and has worked and will continue to work constructively with Congress to provide it with information relevant to its inquiries,” the company said in a statement.A representative for Pfizer declined to comment. The companies have said they expect their deal to close in mid-2020.A representative for Heritage couldn’t immediately be reached for comment.Mylan fell as much as 8.7% in New York on Wednesday amid a broader stock-market sell-off. Teva’s U.S.-traded stock fell as much as 8.6%; the shares hit their lowest price since 1999 last week when the company set aside $646 million for legal expenses related to its role in the opioid crisis.Probes Hit RoadblocksThe renewed investigation into the drugmakers comes as a federal probe into the generics industry has hit significant obstacles. Over the course of a multiyear Justice Department investigation, only two executives from Heritage Pharmaceuticals have been charged. Both pleaded guilty more than two years ago.The Justice Department will likely bring additional charges soon, Bloomberg reported in July, citing two people familiar with the investigation, though it’s not clear who might be charged. Both people said the probe has encountered challenges, but they said it’s no different from any other complex case. On at least some of the conduct that has come to light, the five-year criminal statute of limitations is set to expire next year.(Updates with comment from Mylan in eighth paragraph.)To contact the reporters on this story: Cristin Flanagan in New York at email@example.com;Riley Griffin in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Drew Armstrong at email@example.com, Timothy Annett, Mark SchoifetFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The head of the U.S. House of Representative's oversight panel on Wednesday called on three drugmakers to turn over documents as part of an ongoing congressional review over generic drug price increases and accused the companies of "apparent efforts to stonewall" the probe. U.S. House Oversight Chairman Elijah Cummings, along with U.S. Senator Bernie Sanders, the ranking member on the Senate Budget Committee, sent the letters to Mylan NV, Teva Pharmaceutical Industries Ltd and privately held Heritage Pharmaceuticals, the lawmakers said in a statement.
Shares of Pfizer Inc. dropped 3.6% in afternoon grading Monday, putting them on track to close at a 14-month low, as the drugmaker extends the rough patch in the wake of its second-quarter earnings report and announcement to merge its Upjohn business with Mylan Inc. . The stock, which was the biggest decliner among the Dow Jones Industrial Average's components, is headed for the 9th decline in 11 sessions since the company reported earnings on July 29. During the stretch, the stock has shed 18.6%, which puts it on track for the lowest close since May 9 ,2018. It has now shed 19.6% year to date, while the SPDR Health Care Select Sector ETF has gained 4.7% and the Dow Jones Industrial Average [s; djia] has advanced 11.4%.
Pfizer stock has tumbled, behind pharmaceutical stocks. Recent news has been upbeat with a drug approval and acquisitions. But the question remains: Is Pfizer stock a buy right now?
Despite lower demand hurting volumes of Enbrel, it remains the largest drug for Amgen (AMGN). A district court decision prevents Novartis from launching Erelzi, its biosimilar version of Enbrel.
STOCKSTOWATCHTODAY BLOG Three numbers to start your day: The Chinese are Expected to Buy 22 Million Cars This Year —that’s according to UBS analyst Paul Gong. That would be an 8% decline from last year.
As the Oct. 31 deadline for Britain to leave the European Union approaches, health professionals are warning that shortages of some medicines could worsen in Europe in the event of a no-deal Brexit. Britain's food and drink lobby warned last week that the country would experience shortages of some fresh foods if there is a disorderly no-deal Brexit.
A week after Pfizer said it would merge its division that makes older drugs with the generic drugmaker Mylan, the combined value of the two companies is down by almost $28 billion. Mylan’s market capitalization has risen by about $800 million.
More than 380 S&P 500 companies had reported calendar second-quarter earnings as of Friday. About 75% of companies have beaten Wall Street estimates. That's good, but don’t get too excited.
Pfizer Inc (PFE) has just revealed a controversial plan to spinoff its Upjohn unit. As a result, Pfizer will lose its portfolio of drugs that are no longer patent-protected including Viagra, Lipitor and Celebrex. Upjohn will merge with rival Mylan NV (MYL), which sells and distributes the famous EpiPen. The result: a new global pharma company with estimated annual revenue of around $20 billion. Following the announcement on July 29, Pfizer shares have plunged 12%. In contrast, Mylan is soaring 7%. And now Barclays has revealed that it derives increased confidence in its investment thesis on Mylan from the MYL-PFE deal. That’s when Mylan was already the only overweight name in the company’s US generics segment coverage analyst. “Our positive thesis was based on the company's diverse geographic footprint, extensive biosimilars portfolio and relatively better quality U.S. Generics portfolio. We believe this deal reaffirms this framework and further strengthens MYL's fundamentals” explains Barclays. It has a $27 price target on MYL- indicating over 35% upside potential from current levels.According to Barclays, here are three key reasons why the deal benefits Mylan, and why the firm is reiterating its bullish call: 1 Derisking The new company will have 15% exposure to the still challenging US generics market vs. the current 20%. “We favor more balanced growth exposure, which would be further strengthened in the NewCo” explains the firm. 2 Balance Sheet & Cash Flow ImprovesWith a targeted 2.5x net leverage by the end of 2021, the new company would stand apart from most of its peers, where leverage is pretty material (~5x-6x levered among other U.S. Gx in Barclays’ coverage). Indeed, MYL management has guided to >$4B of FCF in 2020E vs. the firm’s 2019E FCF of $2.0B. 3 Legal risks can be better absorbed The generics sector currently faces a double whammy of legal risks- namely, price fixing and opioids. “As the risks shift to the NewCo, we believe it would be much better positioned financially to deal with adverse legal outcomes” says the firm. And an additional bonus point: MYL's long standing governance concerns are likely to diminish with announced management changes. Indeed Mylan CEO Heather Bresch will depart once the deal closes. Instead Pfizer’s Michael Goettler, currently president of the Upjohn business, will take charge at the new company.Jefferies analyst Jared Holz sees this as a key positive for the deal, noting Mylan had “one of the most out-of-favor management teams in all of health care.” How to value the new company?According to Barclays, Mylan now shows upside potential on a range of multiples. “At ~$21, MYL trades at 6.7x 2020E EBITDA, which we believe could form the floor multiple for the NewCo, which we think would be fundamentally stronger, with improved leverage, cash flows, growth and corporate governance” says Barclays. Applying an EV/EBITDA range of 7.0x-7.5x-8.0 x, the firm reaches a hypothetical valuation range of $23.5-$28.2-$33.1 for MYL, based on its 43% ownership in the new company. Word on the StreetOverall Mylan shows a Moderate Buy Street consensus. In the last three months, 10 analysts have published MYL Buy ratings, vs just 4 hold ratings. Meanwhile the average analyst price target works out in-line with Barclays’ estimate of $27. Following the deal announcement, analysts reiterated their MYL calls- with most raising their price targets. In contrast, both Merrill Lynch and Morgan Stanley have downgraded Pfizer. Although both firms approve the deal from a strategic perspective, they cite valuation as the reason behind their increasingly bearish sentiment on Pfizer stock. Implications for Large Cap PharmaThis deal provides a blueprint for future deals, says Barclays. Although consolidation is inevitable within the generics space to combat industry pressures, balance sheets for most generics companies are stretched. “The proposed MYL-PFE looks like an innovative deal within large cap pharma and could be a blueprint for Generics companies to acquire the scale & stability required to counter adverse industry developments” writes the firm. Discover the Street's best-rated healthcare stocks now
Acorda (ACOR) posts narrower-than-expected loss while revenues top estimates in the second quarter. Inbrija delivers a solid start with sales rising sequentially.
But with $1 billion in annual savings promised within four years of the merger, that's going to have to come from somewhere.