Is Viatris Stock Outperforming the Dow?

Canonsburg, Pennsylvania-based Viatris Inc. (VTRS) is a healthcare company that provides a diverse portfolio of branded, generic, and complex medicines to patients. Valued at a market cap of $13.4 billion, the company's product offerings span major therapeutic categories such as cardiovascular, oncology, central nervous system, and infectious disease treatments.

Companies worth $10 billion or more are typically classified as “large-cap stocks,” and Viatris fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the drug manufacturers - specialty & generic industry. The company leverages a wide manufacturing and distribution network, emphasizing access to affordable medicines, operational efficiency, and sustainable cash flow generation.

This healthcare company is currently trading 7.7% below its 52-week high of $12.78, reached on Dec. 16, 2024. Shares of Viatris have soared 22.9% over the past three months, outperforming the Dow Jones Industrial Average’s ($DOWI) 5.7% rise during the same time frame.

 However, in the longer term, VTRS has declined 6.6% over the past 52 weeks, trailing behind DOWI’s 10.7% uptick over the same time frame. Moreover, on a YTD basis, shares of VTRS are down 5.3%, compared to DOWI’s 14% return. 

To confirm its recent bullish trend, Viatris has been trading above its 200-day moving average since late September and has remained above its 50-day moving average since mid-October. 

On Nov. 6, shares of Viatris plunged almost 6% after its Q3 earnings release, despite delivering better-than-expected results. The company’s total revenue increased marginally year-over-year to $3.8 billion, surpassing consensus estimates by 3%. Meanwhile, its adjusted EPS of $0.67 declined 10.7% from the year-ago quarter, but topped analyst expectations of $0.63. 

VTRS has significantly lagged behind its rival, Teva Pharmaceutical Industries Limited (TEVA), which soared 83.3% over the past 52 weeks and 37.2% on a YTD basis.  

Looking at VTRS’ recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 10 analysts covering it, and the mean price target of $12.47, suggests a 6.6% premium to its current price levels.