3 Absurdly Cheap Stocks You Can Buy For Less than $100 Right Now

Three large healthcare names — AstraZeneca, CVS Health and Pfizer — are presented as value opportunities based on low forward P/Es and above‑market dividend yields. AstraZeneca trades around $90 with trailing 12‑month sales of $58.1B and earnings of $9.4B, a forward P/E just under 18, a 1.7% yield and a 2030 target of $80B revenue with mid‑30s core operating margin ambitions. CVS, trading just under $80 after a >70% YTD rally, reported first nine months 2025 revenue of $296.4B, raised full‑year adjusted EPS guidance to $6.55–$6.65, has a forward P/E ~11 and a 3.3% yield (GAAP P/E inflated by a goodwill charge); Pfizer trades near $25, projects ~$62B sales for the year, a forward P/E below 9, a consensus target north of $28 (≈10% upside), yields ~6.5% and is pursuing growth via acquisitions such as Metsera.

Analysis

Market structure: Large-cap pharma (AZN, PFE) and integrated healthcare (CVS) are net beneficiaries as COVID-era revenue normalization shifts investor focus toward durable pipelines, margin expansion and dividend yield; smaller-cap, single-product COVID plays and unprofitable biotechs are the likely losers. Scale increases pricing power for AZN and CVS (PBM/services) and raises barriers to entry; freed manufacturing capacity reduces short-term supply tightness for new therapeutics but increases competition for talent and M&A targets.

Risk assessment: Key tail risks are regulatory pricing reform or Medicare negotiating rules, failed pivotal trials (obesity programs at PFE), and integration/M&A execution (AZN targets by 2030); a single negative FDA decision or adverse guidance can knock 15–30% off current market prices in days. Immediate risk window: next 30–90 days around quarterly reports and upcoming trial readouts; medium-term: 6–12 months for guidance re-rates; long-term: multi-year delivery on AZN $80bn/2030 ambition.

Trade implications: Tactical longs: AZN and PFE as core positions (see below) with defined price ladders and option overlays; use pair trades to express relative strength (long AZN vs short IBB or small-cap biotech). Options: sell 3–6 month covered calls on PFE to harvest 4–7% premium if basis < $26, and buy 6–12 month protective puts for CVS around earnings if entering before catalysts. Rotate 3–6% weight from cyclical tech into healthcare dividend names if yields >3% and forward P/Es <12.

Contrarian angles: The market underprices obesity and specialty M&A optionality—PFE’s Metsera deal could be a 20–40% upside swing on successful clinical readouts; conversely CVS’s 70% YTD run risks mean reversion absent sustained margin improvement. Historical parallel: post-COVID cash flow reallocation resembles post-HCV peak at GILD—companies that redeployed cash into durable franchises outperformed, those that didn’t were punished. Unintended consequences: accelerated M&A invites antitrust scrutiny that can delay synergies and compress near-term earnings.

Key Decisions for Investors

• Establish a 2.5% long position in AZN (add on pullbacks to ≤ $85). Target $110 in 12 months (~30% upside), trim to half at target or if guidance shows >500bps downside to margin targets; stop-loss -20% from entry.
• Establish a 3% long position in PFE if price ≤ $26; implement a covered-call overlay by selling 3–6 month calls at a strike ~15–25% above purchase to collect premium (target 4–7% yield). Hedge material downside with a 6–9 month 22–24 put if entering before major trial readouts.
• Add a tactical 2% long to CVS only after confirming adjusted EPS guidance holds (EPS range $6.55–$6.65). Before earnings, prefer buy-write (sell 90-day calls) to monetize implied volatility; add more only if forward P/E stays ≤11 and dividend yield >3%.
• Implement a relative-value pair: long AZN vs short IBB (or small-cap biotech ETF) sized dollar-neutral at 1–2% portfolio exposure to capture large-cap re-rating vs biotech risk-off; reassess after 90 days or after major FDA/clinical catalysts.