Even during economic downturns, one fact remains resolute: pharma stocks represent the ultimate risk/reward plays. Out on Wall Street, the sector has become known for its high volatility. How did it earn this reputation? It comes down to the nature of the industry itself.Unlike companies in other areas of the market, pharma stocks depend less on earnings results, and more on clinical data and regulatory decisions. As the latter determine the trajectory of these stocks, a single piece of good news can act as a catalyst that sends shares skyrocketing.That being said, shares can plummet just as easily should a …read more
Source:: Yahoo Finance
