BBOTCS: my simple thoughts on VTRS
I too got my initial VTRS shares from the spin-off. I've additionally bought and sold shares since then to reach about a 0.7% portfolio weight. My current shares are under water, but I'm about break even overall.
This stock is a puzzle to me. On the surface, it seems to be absurdly undervalued, with its current P/E under 5 and a 3% dividend yield. No doubt that its main business of generic and biosimilar drugs sales will not be fast-growing, and so it probably deserves a commodity-like P/E. But perhaps an 8 P/E is more appropriate.
So, either the market just hasn't woken up to the value in this stock, or pharmaceutical experts (and that is clearly not me) know that somehow Viatris' business is going to slow down appreciably in the future.
The next earnings announcement will occur on Aug. 9. I currently plan to hold the stock until the earnings of the following quarter are announced. By then the market should either wake up to the value here, or I will learn that this is a value trap.
Good luck with your VTRS shares.
