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Our monthly Ice Best Buys Now are designed to highlight our team’s three favourite, most timely Buys from our growing list of income-focused Ice recommendations, to help Fools build out their portfolios.
“Best Buys Now” Pick #1:
GSK (LSE: GSK)
- On January 10, GSK announced that its drug Nucala (mepolizumab) has been approved in China for the treatment of severe asthma. Given the significant air pollution issues, asthma has become a major health concern in China, affecting millions with severe cases.
- Last December, the European Commission also granted marketing authorisation for GSK’s ‘Jemperli’ to treat certain endometrial cancers.
- This global biopharma giant is currently valued at just 10.7 times trailing earnings and offers a 3.6% dividend yield. This is far lower than the global pharmaceutical sector average of 35x and the FTSE 100 index average of 14x.
- The potential cost of Zantac litigation has disproportionately overshadowed the improved and increasingly attractive growth story GSK delivered in 2023.
- Sell side analysts estimate GSK’s earnings for 2026 and beyond are well above consensus as new pipeline launches.
