We are just about to wrap up the first quarter, and we could very well end where we started the year. After a brutal January and February sell-off that took stocks down to correction levels for the second time in seven months, the indexes have fought back to just about even. With the political cycle in full swing, the rhetoric against drug pricing has ratcheted up yet again, as candidates try to push the populist button.

Health care, and especially the pharmaceutical stocks, have been the main whipping boys for the politicians, and the fact of the matter is big pharmaceutical companies are, plain and simple, cheap. We screened our Wall Street research data base for companies that look inexpensive and have big potential upside. We also looked for stocks that are Buy rated.

AbbVie

This is the top global pharmaceutical stock at Jefferies and is also on its Franchise Stock Picks list. AbbVie Inc. (NYSE: ABBV) is a 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.

One of the biggest concerns with AbbVie is what might eventually happen with anti-inflammatory therapy Humira, which generated $14 billion in sales in fiscal 2015. That was the most any drug has recorded during a single year and represents a gigantic part of the company’s overall earnings. The problem with Humira is that biosimilars and generics are itching to enter the market, with Amgen leading the charge, and some Wall Street analysts project that AbbVie may have a difficult time stopping that trend.

Jefferies analysts have become much more positive on the stock and feel that the company’s response to the Coherus Inter Partes Review (IPR) on key Humira patents looks solid and an IPR denial is a very real possibility.

AbbVie reported mixed fourth-quarter numbers but affirmed guidance, and some on Wall Street were concerned over a new hepatitis C drug from a rival company. Jefferies cited the company’s very cheap valuation and strong catalysts this year as reasons for making it the top global pick.

AbbVie investors receive a 4.0% dividend. The Jefferies price target for the stock is $80, among the highest on Wall Street. The Thomson/First Call consensus target is $71.35. Shares closed Tuesday at $57.05.

Bristol-Myers Squibb

This top company remains a favorite at SunTrust Robinson Humphrey. Bristol-Myers Squibb Co. (NYSE: BMY) is a global pharmaceutical company focused on discovering, developing, licensing and marketing chemically synthesized drugs or small molecules and biologics in various therapeutic areas, including virology comprising human immunodeficiency virus infection (HIV), oncology, neuroscience, immunoscience and cardiovascular.

The firm reiterated its Buy rating recently, and analyst John Boris thinks there could be upside to current consensus estimates. He also thinks Bristol-Myers Squibb is on track to beat his above-consensus revenues number for the first quarter. The analyst cites strong Opdivo sales, which showed month-over-month growth in February of 12%. That indicates the drug is maintaining its dominant market share.

Bristol Myers investors receive a 2.37% dividend. The $80 SunTrust price target is higher than the consensus target of $72.43. The stock closed Tuesday at $64.19.

Eli Lilly

This stock checks in at high on the global pharmaceutical lists at many top Wall Street firms. 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.

The company reported fourth-quarter earnings that 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 the firm views as very undervalued. It also remains very positive on the “huge growth potential” prospects for Jardiance, which is a prescription medicine used to lower blood sugar in adults with type 2 diabetes.

Eli Lilly shareholders receive a 2.85% dividend. Merrill Lynch has a $108 price target. The consensus target is $99.20. Shares closed Tuesday at $71.70.

Pfizer

This top pharmaceutical stock recently was added to the Merrill Lynch US 1 list. 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 Pfizer 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 a $160 billion merger with Allergan. But the U.S. Department of Treasury also announced that it is working on new rules for corporate tax inversions, which the Pfizer/Allergan deal could be, possibly throwing a wrench into the negotiations. Pfizer executives maintain that they don’t think government will scuttle the deal. With $3 to $5 arbitrage pressure on the stock, there is some downside protection even if the deal does break.

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. Hedge funds seem to like the stock as a total of 22 own it now.

Pfizer investors receive a 4.0% dividend. The $39 Merrill Lynch price target is nearly in line with the consensus target of $38.81. Pfizer closed Tuesday at $30.05.

Long-term growth investors looking for a degree of safety and value should consider some of these outstanding companies. While the sentiment may be less than stellar now, massive drug pricing changes anytime soon are unlikely.

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