If you ever want to look for value in a sector in the stock market, then when you see Congress calling in some of the top companies to scold them for political purposes, you may want to start buying. Last week there they were, as congressional blowhards attacked the greedy pharmaceutical industry for high drug prices. Are some too high? Sure, but failure is very expensive in the pharmaceutical arena. Politicians don’t care, and never turn down a good venue to harangue a company spokesperson for populous gains.

We have noted before, that this political rhetoric could hang around through the entire election cycle. However, huge reform and across-the-board price cuts most likely will never happen with a Republican-controlled House and Senate. We screened our 24/7 Wall St. research database for top pharmaceutical stocks that have been knocked down and are offering investors very enticing entry points.

AbbVie

This is one of the top global pharmaceutical stocks at Jefferies and is also on the Franchise Stock Picks list. AbbVie Inc. (NYSE: ABBV) is a global, research-based biopharmaceutical company formed in 2013 following separation from Abbott Laboratories. The company’s mission is to use its expertise, dedicated people and unique approach to innovation to develop and market advanced therapies that address some of the world’s most complex and serious diseases. AbbVie employs more than 26,000 people worldwide and markets medicines in more than 170 countries

The stock fell 10% in late October after the FDA warning about liver risk with the company’s hepatitis C (HCV) products. However, Jefferies points out that this applies to a small sub-population of cirrhotics who are up to 5% of the total patient population. Additionally, the next generation HCV product could be launched as early as 2017, and even of the entire Viekira Pak/Technivie business were lost over the next two years, it represents only 4% of net value.

The company announced last week that the supplemental New Drug Application (sNDA) for Viekira Pak to be used without ribavirin has been accepted by the FDA with priority review. The company is looking to get the product’s label expanded for use without ribavirin for the treatment of patients with genotype 1b (GT1b) chronic HCV and compensated cirrhosis (Child-Pugh A).

The company reported mixed fourth-quarter numbers, but affirmed guidance. Some on Wall Street were concerned over a new HCV drug from a rival company. Concerns over a biosimilar competition to the company’s wildly successful Humira have also made the rounds.

AbbVie investors receive an outstanding 4.3% dividend. The Jefferies price target is $85, among the highest on Wall Street. The Thomson/First Call consensus target is $72.73. Shares closed Friday at $53.12.

Eli Lilly

This stock checks in high on the global pharmaceutical lists at many top Wall Street firms, and it is on the Merrill Lynch US 1 list. Eli Lilly and Co. (NYSE: LLY) is a global health care company with numerous core products in a number of primary-care pharmaceutical markets. The company generates revenues from its pharmaceutical product and animal health segments.

The product portfolio includes Zyprexa (for schizophrenia and bipolar disorder), Gemzar (pancreatic cancer), Evista (osteoporosis), Cymbalta (depression), Cialis (erectile dysfunction), Strattera (attention deficit hyperactivity disorder), Erbitux (cancer) and Alimta (chemotherapy). Eli Lilly also has a strong presence in the diabetes market.

Fourth-quarter earnings were in line with Merrill Lynch and consensus estimates. While the overall numbers were unremarkable in the analysts view, Merrill Lynch is still very focused on the company’s outstanding late-stage product pipeline, which it views as very undervalued. The firm also remains very positive on the “huge growth potential” prospects for Jardiance, which is a prescription medicine used along with diet and exercise to lower blood sugar in adults with type 2 diabetes.

Shareholders receive a solid 2.75% dividend. Merrill Lynch has a $108 price target. The consensus target is $99.20, and shares closed Friday at $74.32.
Merck

This leading health care stock is on the focus lists of many of the firms we cover. Merck & Co. Inc. (NYSE: MRK) sells numerous prescription medicines, vaccines, biologic therapies and consumer care and animal health products to customers in more than 140 countries. Merck is the world’s fourth-biggest drugmaker by revenue and boosted its annual profit forecast earlier this year, and it soon will report third-quarter results.

The pharmaceutical giant recently announced very encouraging data from two pivotal Phase 3 clinical studies for its investigational antitoxin bezlotoxumab for prevention of recurrence of clostridium difficile infection. The studies dubbed MODIFY I and MODIFY II evaluated the use of bezlotoxumab alone or in combination with actoxumab. Both the studies met their primary efficacy endpoint.

Back in the fall the FDA granted breakthrough therapy designation to Merck’s Keytruda, as the company managed to prove that the drug is better than existing therapies for treating non-small cell lung cancer. Keytruda was tested on a clinical subgroup of 61 patients who had been treated either by chemotherapy or targeted therapy and had tumors expressing the protein PD-L1. In patients that treated with Keytruda, tumors shrank by 41%, and the effect continued for 2.1 to 9.1 months. However, the relationship between Keytruda use and survival rate or disease symptoms is yet to be conclusively proved.

Merck shareholders receive a 3.74% dividend. The $63 Merrill Lynch price target is higher than the consensus target of $60.42. Shares closed Friday at $49.38.

Pfizer

This stock could be offering investors the best value at current trading levels. Pfizer Inc. (NYSE: PFE) has a very strong pipeline, and being the world’s largest drug manufacturer by sales value supports the Wall Street notion that the company can generate higher long-term revenues through the accelerated growth of its new drugs over the next five years. The company announced recently the details in what would be one of this year’s biggest deals: a $160 billion merger with Allergan.

The Treasury Department announced recently that it is working on new rules for corporate tax inversions, which is potentially what the Pfizer/Allergan deal would be, and it could possibly throw wrench into the negotiations. Pfizer executives maintain that the government will not scuttle the deal.

Pfizer has announced that it is starting 20 clinical trials this year and more soon after on treatments to conquer cancer, as it also seeks to gain leadership in one of the hottest and most lucrative areas of medicine. Pfizer currently has eight approved cancer medicines, four of them launched in the past four years. It’s running late-stage patient tests on five of those drugs for additional uses and has three other drugs in late-stage testing, which is usually the last round before seeking regulatory’ approval. In addition, the company has 14 other drug programs in early stages.

Pfizer investors receive a 4.13% dividend. The Merrill Lynch price target is set at $39. The consensus target is $39.63. Pfizer closed Monday at $29.03.

With political saber-rattling over drug pricing continuing to remain front and center during the 2016 election year, the reality is these companies all provide drugs that help hundreds of thousands of people daily lead a better life. These stocks make good sense for conservative portfolios looking for income and growth this year, especially with the market very weak.

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