Zacks Market Edge · Zacks Investment Research

5 Large Cap Drug Stocks: Values or Traps?

October 3, 2025·35 min·3 clips
Why are large cap drug stocks like Pfizer and Merck cheap, yet still considered traps by value investors?
The episode analyzes five large cap drug stocks—Pfizer, Merck, AbbVie, Eli Lilly, and Novo Nordisk—to determine if they are value investments or traps, using valuation metrics like PE ratios and earnings growth. The host provides insights on each company's financials, dividend yields, and industry trends, concluding with recommendations for value and growth investors.

As heard by us

A value-screen look at whether big pharma still looks cheap.

Tracy Reineck takes a steady, value-first look at Pfizer, Merck, and AbbVie. The episode stays close to the numbers: dividend yield, earnings growth, PEG, and price to sales all get a turn, along with the same question that hangs over names like these, whether they are cheap or…

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Why you'd press play

You want to know whether big pharma is value, or just a familiar trap.

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