In the big pharma sector, the best buy is AstraZeneca at prices below $56
- AstraZeneca offers a higher rate of return to investors.
- The price range for AstraZeneca is wider compared to GSK and JNJ.
- Sell AstraZeneca now and wait to buy for the price at levels between $52 and $56 to buy.
GlaxoSmithKline PLC (LON:GSK), Johnson & Johnson (FRA:JNJ), and AstraZeneca PLC (LON:AZN) are certainly the best in the big pharma industry. As the companies compete in the drug wars, investors only want to know which stock provides the best investment opportunity.
AstraZeneca wins investors in the big pharma wars
While GSK returned only 6.84% in capital gains since September 2019, JNJ rose by 31.28%. AstraZeneca reported 69.80% in stock market returns. These results indicate AstraZeneca as the ultimate winner. However, investors need to know whether buying the stocks at prevailing market prices would attract similar returns.
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GSK at $43 is only $3 above the support of $40 and only $2 below the resistance of $45. The highly constricted range demonstrates why GSK would face significant challenges providing more than 10% in returns.
JNJ has a support level of $150. At the time of presenting this analysis, the stock was trading at the resistance level of $176. The highest level that the company hit is $179. The RSI at 61 is bullish, and the stock is likely to hit the overbought region.
Consequently, the stock will most likely shed value to levels between the support and midline of $165. The analysis marks JNJ as a sell at the prevailing price.
Lastly, AstraZeneca at $65 is moving to find a new high. The price has a support level of $52. The bullish momentum could be hitting a peak, and the stock will most certainly correct to a price of approximately $56 before gaining again.
Since AstraZeneca has the highest rate of return among the three companies, it is considered a better investment. However, investors should wait for the price to pull back to levels between $52 and $56 before investing. All three companies are bullish but AstraZeneca has a higher price range and better potential for high returns.
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