Top Pharmaceutical Stocks for Q4 2022

The pharmaceutical industry is made up of companies that research, develop, make, and sell drugs and treatments used to treat or eradicate diseases and vaccinate people. This includes some of the largest and best-known companies in the world, such as Pfizer Inc., Merck & Co., and AbbVie Inc. A number of pharmaceutical companies have experienced a surge in their sales after winning approval from U.S. and other governments for vaccines aimed at protecting people against the COVID-19 virus.

Over the past 12 months, pharmaceutical stocks, based on the iShares U.S. Pharmaceuticals ETF (IHE), have outperformed the overall market. IHE’s total return over the period was -2.6%, compared with the S&P 500’s total return of -9.8%. These market performance figures and all statistics in the tables below are as of Sept. 14, 2022.

Here are the top three pharmaceutical stocks in each category: best value, the fastest growth, and the most momentum.

These are the pharmaceutical stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.