Wall Street bounced back Wednesday after Tuesday's sharp selloff in AI-driven stocks, as investors bought the dip amid solid corporate earnings and growing signs that the Federal Reserve may be nearing another interest rate cut.
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Royalty Pharma (NASDAQ:RPRX) and the best and worst performers in the branded pharmaceuticals industry.
While the S&P 500 is up 23.9% since April 2025, Royalty Pharma (currently trading at $36.80 per share) has lagged behind, posting a return of 12.5%. This was partly due to its softer quarterly results and might have investors contemplating their next move.
Personal health and wellness is one of the many secular tailwinds for healthcare companies. Despite the rosy long-term prospects, short-term headwinds such as COVID inventory destocking have caused the industry to lag recently -
over the past six months, the collective 8.4% gain for healthcare stocks has fallen short of the S&P 500’s 22.7% rise.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Mid-cap stocks often strike the right balance between having proven business models and market opportunities that can support $100 billion corporations.
However, they face intense competition from scaled industry giants and can be disrupted by new innovative players vying for a slice of the pie.
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
BeOne Medicines will sell global Imdelltra royalties to Royalty Pharma for up to $950 million while retaining rights to other oncology programs with Amgen.
Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices.
But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.
Royalty Pharma (RPRX) shows strong breakout potential with high technical and setup ratings, solid trend consistency, and clear support levels. Ideal for traders eyeing momentum stocks.
Personal health and wellness is one of the many secular tailwinds for healthcare companies. Despite the rosy long-term prospects, short-term headwinds such as COVID inventory destocking have harmed the industry’s returns -
over the past six months, healthcare stocks have collectively shed 7.7%. This drop is a noticeable divergence from the S&P 500’s 5.5% return.
Healthcare royalties company Royalty Pharma (NASDAQ:RPRX) fell short of the market’s revenue expectations in Q2 CY2025, but sales rose 7.7% year on year to $578.7 million. Its non-GAAP profit of $1.14 per share was 10.5% above analysts’ consensus estimates.
As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the branded pharmaceuticals industry, including Royalty Pharma (NASDAQ:RPRX) and its peers.
Healthcare royalties company Royalty Pharma (NASDAQ:RPRX) fell short of the market’s revenue expectations in Q2 CY2025, but sales rose 7.8% year on year to $579 million. Its GAAP profit of $0.16 per share was in line with analysts’ consensus estimates.
