Benjamin Franklin would probably be disappointed that the $100 bill that bears his likeness isn’t worth what it used to be. However, there are actually plenty of great stocks to be found that you can buy with just one Benjamin.
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Three Motley Fool contributors think they’ve found no-brainer stocks to buy for under $100 right now — and all three stocks are in the healthcare sector. Here’s why they picked AstraZeneca (NASDAQ: AZN), BioNTech (NASDAQ: BNTX), and Novartis (NYSE: NVS).
The slump won’t last forever
Prosper Junior Bakiny (AstraZeneca): U.K.-based pharmaceutical giant AstraZeneca has had a volatile 2023. It started the year on a positive note. Over the past six months, though, the company’s stock is down by more than 15%. AstraZeneca’s shares are currently worth just under $65 apiece.
On the one hand, the market’s skepticism isn’t hard to parse. AstraZeneca’s financial results haven’t been great, something it partly owes to its coronavirus portfolio. However, the drugmaker makes up for its declining COVID-19 sales with a vast portfolio of products. In the first half of the year, eight of the company’s medicines generated more than $1 billion in sales. That’s why AstraZeneca’s core business is strong.
AstraZeneca’s total revenue in the first six months of 2023 increased by 12% year over year to about $22 billion (excluding its COVID-19 products). That’s a solid performance for a pharmaceutical company of this size. Overall revenue (including coronavirus medicines) inched higher by just 1% year over year to $22.3 billion.
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What’s more, things will only improve for AstraZeneca. The company’s pipeline, with 172 programs — including 14 brand-new clinical compounds in late-stage studies — will help lead to a larger lineup and broader revenue base. There are more reasons to invest in the stock, including AstraZeneca’s solid dividend profile.
The stock’s performance over the last six months shouldn’t scare off investors. At a share price of well under $100, AstraZeneca is ideal for long-term investors on a budget.
BioNTech’s future extends beyond COVID
Keith Speights (BioNTech): You might want to hurry if you’re interested in buying BioNTech stock for under $100. The biotech’s share price currently stands at around $97. A rebound could be starting after a steep decline over the last couple of months.
Some investors might be skeptical about BioNTech, though. After all, COVID-19 vaccine sales aren’t what they used to be. The company’s revenue and profits have fallen off a cliff due to weakening demand for Comirnaty, the COVID vaccine that BioNTech co-markets with Pfizer.
However, better news is on the way. BioNTech and Pfizer recently reported positive results from a phase 1/2 study of a combination flu-COVID vaccine. They plan to soon initiate a pivotal phase 3 study of the combo vaccine.
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More importantly, BioNTech’s future extends well beyond COVID. It’s working with Pfizer on a flu vaccine that’s in late-stage testing. The company is collaborating with OncoC4 on evaluating a therapy targeting lung cancer in a phase 3 study.
In addition to these late-stage programs, BioNTech’s pipeline features 11 candidates in phase 2 trials and 23 in phase 1 testing. They include messenger RNA (mRNA) therapies, cell therapies, and protein-based therapeutics.
BioNTech has plenty of money to invest in expanding its pipeline, too. The company ended the second quarter with a cash stockpile (including cash, cash equivalents, and investments) in the ballpark of $17.7 billion.
Novartis is a cheap stock with loads of growth potential
David Jagielski (Novartis): Trading at just under $100, Novartis is a top healthcare stock that can climb much higher in the years ahead. Its focus on innovative medicines makes it an attractive option for growth investors. The company recently spun off its generic business, Sandoz, in order to focus on long-term growth opportunities.
Novartis has many promising drugs in its portfolio already. Heart failure drug Entresto generated more than $2.9 billion in revenue through the first half of this year, with sales rising by 35% compared to the prior year. The company also has many drugs that have more than doubled their revenue from this time last year, including multiple sclerosis treatment Kesimpta, which has brought in $873 million in year-to-date sales (up 103% year over year).
Novartis’ growth potential is impressive: The company has approximately 150 projects in development right now spanning multiple therapeutic areas. It has also generated more than $11 billion in free cash flow in each of the past four years, giving it robust resources to pump into the development of its drugs (and possibly more acquisitions).
Trading at only 13 times its estimated future earnings, this is a top stock to own. Novartis also pays a dividend that yields 3.7%, making it a great option for income investors. Between the dividend, the strong free cash flow, and some promising growth potential, this is a no-brainer stock to buy at under $100.
