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As 2024 closes with the S&P 500 achieving a 25% return, investors are advised to consider defensive strategies amid potential market volatility. AbbVie, with a strong dividend yield and promising drug sales growth, and Pfizer, offering a high yield and new growth drivers, are highlighted as solid healthcare sector investments for uncertain times. Both companies are well-positioned for continued success as they enter 2025.
Wall Street is experiencing one of its priciest stock markets in history, with the S&P 500's Shiller P/E ratio nearing 39, significantly above the historical average of 17.19. This elevated valuation raises concerns about potential volatility and declines in 2025, prompting a strategy of holding 15% to 30% of portfolios in cash to capitalize on future buying opportunities. Historical trends indicate that when the Shiller P/E exceeds 30, significant market corrections often follow.
The Global Uveitis Treatment market is projected to grow from USD 725 million in 2024 to USD 1.28 billion by 2032, with a CAGR of 8.5%. The study covers various treatment types, including corticosteroids and biologic agents, and offers customization options for regional and application-specific analysis. Key players include Novartis, Pfizer, and AbbVie, with North America leading the market and Asia-Pacific identified as the fastest-growing region.
Xcovery Holdings' ensartinib, branded as Ensacove, has received FDA approval as a first-line treatment for ALK-positive non-small cell lung cancer, marking a significant milestone as the first innovative targeted lung cancer drug from a Chinese company to enter the U.S. market. While it shows a 44% reduction in progression or death compared to Pfizer's Xalkori, it faces stiff competition from established ALK inhibitors like Roche's Alecensa, which has demonstrated superior efficacy in previous studies. Despite its potential, Ensacove's market entry comes amid a landscape dominated by major pharmaceutical players.
UBS has maintained a "Neutral" rating for Pfizer, setting a target price of $31. The decision to terminate the lung cancer study with Sasanlimab is attributed to strategic reasons, though high dropout rates raise concerns, particularly regarding the ongoing phase III bladder cancer study.
Pfizer Inc., the leading pharmaceutical group, has received a Neutral rating from UBS. Its net sales are primarily driven by primary care products (52.3%), followed by specialty care (25.6%) and oncology (19.9%). Geographically, sales are distributed with 42.3% in the U.S., 21.9% in Europe, and 33.8% in other regions.
U.S. stocks fell on Tuesday, with the Dow experiencing its longest losing streak since February 1978, dropping for the ninth consecutive session. Investors are cautious ahead of the Federal Reserve's policy announcement, anticipating a 25 basis point rate cut, while economic data shows solid consumer spending. The S&P 500 and Nasdaq also declined, though Tesla's stock rose significantly after a price target increase.
Investors are concerned that Trump's potential trade tariffs could exacerbate inflation, as retail sales rose 0.7% in November. The Dow Jones is on track for its longest losing streak since the 1970s, while Nvidia faces challenges with thermal issues in its chips, impacting its stock. Tesla continues to rise, with analysts projecting a bullish outlook for 2025.
U.S. stock indexes pulled back, with the S&P 500 down 0.4% and Nvidia's stock falling 1.2%, marking its eighth loss in nine days. Despite this, the S&P 500 is up nearly 27% for the year, buoyed by strong economic resilience and expectations of favorable policies from President-elect Trump. Bitcoin briefly surpassed $108,000 before retreating to around $106,500.
UBS has maintained a 'Neutral' rating for Pfizer, setting a price target of 31 US dollars. Analyst Trung Huynh noted that the pharmaceutical company's outlook for 2025 did not present any surprises in his initial reaction.
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