When will the turmoil on the market come to an end? Nobody knows for sure. There is no telling how long this situation will continue. The stock market is suffering from a variety of problems, including rising interest rates, high inflation, and the continuing Ukraine conflict. All of these issues are adding pressure on the stock market.
Not every stock, however, is experiencing the same turmoil. Here are three stocks that are outperforming the market and might be a good fit for your portfolio.
McKesson Corporation (MCK -1.89%) outperformed the S&P 500 in 2020. It did so again in 2021. The healthcare services stock has already trounced the S&P 500 this year, with a scorching gain of more than 30%.
The firm has continued to exceed expectations, in large part, by simply doing its job. McKesson’s revenue in the three months ending March 31, 2021 increased 12% year over year. For the quarter, McKesson’s adjusted earnings per share were up 15%.
Many McKesson executives, including CEO Brian Tyler, have praised the firm’s increased productivity in recent earnings calls. He mentioned automation for picking and packing technologies as well as robotics in pharmaceutical distribution. “We’re also broadening our core operation’s reach by entering adjacent markets while also maintaining operational excellence,” Tyler added.
Regardless of what occurs with the economy, pharmaceuticals and medical-surgical supplies will still be required. With a stock price of just 13.3 times expected profits and promising development prospects ahead, this firm appears to be a fantastic choice for shell-shocked investors right now.
2. Bristol Myers Squibb
Bristol-Myers Squibb (BMY 0.07%) is another healthcare firm that’s outperforming the broader market these days. Its stock has risen over 20% so far this year, with no significant decline yet in 2022.
Many of BMS’ impressive gains have been due to important regulatory victories. In April, European approval was granted for cancer immunotherapy Opdivo as one of the first-line treatment options for esophageal cancer. Breyanzi, a cell therapy for B-cell lymphoma, received European approval in July. Camzyos (mavacamten), a new cardiac failure drug, received U.S. approval this month (March).
Despite these difficulties, BMS is well positioned. In the United States, Revlimid is no longer protected by patents. Abraxane must now confront generic competition as well.
However, Big Pharma has a number of new medicines with the potential to be quite lucrative. It also has a robust pipeline, with more than 40 projects in late-stage development.
3. Vertex Pharmaceuticals
The stock price of Vertex Pharmaceuticals (VRTX -7.16%) rose more than 30% so far in the year. In recent weeks, it has given up some of that advance, but it is still comfortably outperforming the market, with its shares up around 15%.
The monopoly of the large biotech in the cystic fibrosis (CF) sector is stronger than ever. AbbVie, one of its top potential rivals, revealed disappointing phase 2 findings for a triple-drug CF combination last month.
Vertex may soon have another huge success outside the CF community. The firm and its collaborator CRISPR Therapeutics plan to seek regulatory approvals for gene-editing therapy CTX001 in treating transfusion-dependent beta-thalassemia and sickle cell disease later this year.
Furthermore, Vertex’s long-term prospects appear to be positive. The biotech’s pipeline includes interesting late-stage candidates that target APOL1-mediated kidney disease and acute pain. In addition, Vertex’s islet cell therapies have the ability to cure type 1 diabetes, which could be a game-changer.