Publication: Business Standard, New Delhii; Date: Jan 3, 2010;
During uncertain times investors flock to pharmaceutical stocks. Here’s how to evaluate them.
Pharmaceutical companies are seen as defensive stocks. During uncertain markets, there is a flight towards pharmaceutical stocks as they are considered more stable than other sectors. However, one needs to be careful in selecting which stocks to buy, even in a ‘safe’ sector.
The first thing that most investors look at is the price-to-earnings(P/E) ratio, to determine whether they should buy a stock.