Featured # Markets | 3 years ago

Big Pharma Controls Ranking of Stocks with Highest Five-Year Returns

On Tuesday, United States pharmaceutical companies dominated a yearly worldwide ranking of top 10 large-cap stocks with the highest five-year returns, according to an analysis reported by Boston Consulting group. Companies with a higher market cap than $4 billion dollars were in consideration for the list and ranked based on share increase and dividend yields between 2011 and 2015. Approximately 2,000 stocks were analyzed. Next, seven out of the top 10 stocks ranked highest for creating value for shareholders were companies based in the U.S.

Not including pharma industries that distributed the highest shareholder returns over the last five years include healthcare services, then comes media and publishing and travel and tourism. Also, Commodity industries such as oil, metals and mining ranked at the bottom of the totem pole, according to a report released by BCG. Investors appear to be cashing in on some gains, with the S&P 500 Health Care Sector. SPXHC fallen 2.7 percent year-to-date. Meanwhile Boston Consulting starting publishing its analysis of top value-creating stocks in 1999, 89 companies have been added to the list with less than half making it on for a second time, the report noted. “We’re always quite surprised at how much change there is one year to another,” quoted Hady Farag, a New York-based principal at BCG who co-authored the report. Lastly, while pharmaceutical companies have ranked high in recent years, individual companies with maintainable revenue growth and strong business plans, rather than those “riding industry trends,” have consistently performed better, Farag added.


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