Abstract

The capital market has changed a lot because of COVID-19, and there are three types of firms that grow fastest during this period. Thereinto, the most significant one is the pharmaceutical industry. In this specific period, investors need to be more careful when they are choosing stocks. This paper is focused on picking stocks based on value, return, profitability, and payout four aspects. For these four aspects, some data needs to be found and compared, i.e., P/E ratio, revenue growth rate, gross profit, gross margin, asset turnover, GP/A, dividend per share, and dividend yield. For the result of stock picking, JOHNSON &JOHNSON is a very fitness choice now. P/E is low for JNJ and it may not be overvalued, the gross margin for the company is also high with high-level profitability. The financial condition of JNJ is stable and always in a positive trend. COVID-19 caused a bad economic situation, investors have been greatly negatively affected by the situation. These results shed light on guiding investors to avoid losses and gain as much as possible.

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