2 Healthcare Stocks to Buy Hand Over Fist in January

As the new year begins, investors are looking for promising opportunities in the healthcare sector. Two stocks that stand out for their potential in January are Amgen (AMGN) and Eli Lilly (LLY). Both companies have strong pipelines, attractive valuations, and compelling reasons to invest.



Amgen (AMGN)

Amgen is a biotechnology company with a diverse portfolio of products, including Tezspire for severe asthma and Lumakras for cancer. The company's stock price has been volatile in recent months due to the release of data from a phase 2 clinical trial for its weight loss candidate, MariTide. However, the market overreacted to the results, creating an opportunity for investors to buy the stock at a discount.

Amgen's forward P/E ratio of 13 indicates that the stock is relatively undervalued compared to its peers. The company also yields 3.6% at the current share price, providing a solid foundation for growth. Additionally, Amgen's GLP-1/GIPR combination treatment in development could offer serious competition to Eli Lilly and Novo Nordisk, further boosting its prospects in the sector.



Eli Lilly (LLY)

Eli Lilly is a pharmaceutical company with a strong pipeline and attractive long-term prospects. The company's shares have been performing well, with a 32% increase over the past year. This aligns with the broader trend of strong performance in the pharmaceutical sector, driven by innovation and growth in the market.

Eli Lilly's pipeline, including tirzepatide (Zepbound and Mounjaro), retatrutide, and orforglipron, positions it well for future growth in the weight loss and diabetes treatment markets. The company's financial results are expected to remain strong, with Zepbound and Mounjaro continuing to grow their sales rapidly and newer products like Kisunla contributing to the bottom line.



In conclusion, Amgen and Eli Lilly are two healthcare stocks that stand out for investment in January. Both companies have strong pipelines, attractive valuations, and compelling reasons to invest. While there are risks associated with any investment, a focus on each company's long-term potential, diversified pipeline, and strong financials can help mitigate these challenges. Additionally, each company's track record and partnerships further validate their ability to navigate the healthcare landscape. As the new year begins, investors should consider adding these two healthcare stocks to their portfolios.