Zacks Value Trader Highlights: Pfizer, Merck, AbbVie, Eli Lilly and Novo Nordisk

For Immediate ReleaseChicago, IL – October 6, 2025 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2761827/5-large-cap-drug-stocks-values-or-traps)5 Large-Cap Drugs Stocks: Values or Traps?Welcome to Episode #416 of the Value Investor Podcast.(0:30) - Can You Find Strong Value Investments In Drug Stocks Right Now?(3:40) - Breaking Down The Recent Industry Performance (9:00) - Tracey’s Top Stock Picks (30:00) - Episode Roundup:  PFE, MRK, ABBV, LLY, NVO Podcast@Zacks.comEvery week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.Many of the large cap drug stocks have been cheap for years. Tracey has discussed Pfizer and Merck, off and on, on the podcast for a decade.Then COVID happened and some of the drug companies had success with the COVID vaccine. Recently, weight loss drugs have also pumped up some drug company earnings.But some of the stocks have lagged the S&P 500 for years, and even decades.Are these companies values or are they traps?Should value investors be taking a look at the large cap drug stocks in 2025?Definition of a Value Versus a TrapA value stock is usually one that has low classic value fundamentals such as a low price-to-earnings (P/E) or price-to-sales (P/S) ratio. It can also be a company that is out of favor with Wall Street or is lagging its peers.But a low P/E doesn't necessarily mean a company is a true "value." Value investors still want rising earnings and other solid fundamentals. A stock could be a trap if it has a low P/E but is seeing a decline in earnings.After all, value investors want growth just as much as growth investors. They just want to pay less for it.5 Large Cap Drug Stocks: Are They Values or Traps?1. Pfizer Inc. PFEPfizer has been a value stock for two decades. It currently trades with a forward P/E of just 8.6. A P/E ratio under 10 indicates a company is dirt-cheap.Pfizer shares have also lagged for years. It is trading near its 5-year low, up just 3.5% year-to-date. Pfizer is paying a large dividend, for your patience. It is yielding 6.4%.Earnings are expected to rise just 1% in 2025.Is Pfizer a value or a trap?2. Merck & Co., Inc. MRKMerck shares have sold off in the last 2 years and are down 9.3% year-to-date. Merck is trading near its 5-year lows as well.It's cheap on a P/E basis, with a P/E of just 10. But the earnings picture looks a bit brighter than that of Pfizer. It is expected to grow earnings by 16.7% in 2025. Merck also pays a dividend, for your patience. It yields 3.6%.Is Merck a value or a trap?3. AbbVie Inc. ABBVAbbVie has neither the COVID vaccine nor weight loss drugs. Yet it has managed to grow its revenue and earnings the last few years, even with the loss of its blockbuster drug Humira.Shares of AbbVie are up 32.8% year-to-date and are at new 5-year highs. Earnings are expected to rise 18.8% in 2025. But it's not as cheap, on a P/E basis, as Merck or Pfizer. AbbVie trades with a forward P/E of 19.3. A P/E of 15 or less usually indicates value.AbbVie pays a dividend, currently yielding 2.8%.Is AbbVie a value or a trap?4. Eli Lilly & Co. LLYEli Lilly is one of the winners of the race to find a weight loss drug. Shares soared to new highs as earnings rose by the triple digits. But year-to-date, Eli Lilly shares are up just 9%.Eli Lilly is not cheap. It's the most expensive of these 5 drug stocks with a forward P/E of 33. But earnings are expected to rise 77.3% this year and another 34.4% in 2026.Eli Lilly also pays a dividend, yielding 0.7%.Is Eli Lilly a value or a trap or neither?5. Novo Nordisk A/S NVONovo Nordisk is one of the top drug companies in diabetes and weight loss. But shares have plunged 30.4% year-to-date, giving up a lot of the weight loss drug rally of recent years.Novo Nordisk is cheap. It trades with a forward P/E of just 15.4. A P/E of 15 or under usually indicates value. Novo Nordisk also has growth. Earnings are expected to rise 16.2% in 2025.Novo Nordisk pays a dividend, currently yielding 1.4%.Is Novo Nordisk a value or a trap?What Else Should You Know About Big Cap Drug Stocks?Tune into this week's podcast to find which are values and which are traps.[In full disclosure, Tracey owns shares of ABBV in her personal portfolio and Zacks Value Investor and also owns LLY in Zacks Insider Trader portfolio.]Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.About Zacks Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. 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Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks