Empirical analysis of quantitative investment in pharmaceutical stocks

ABSTRACT

With the rise of the proportion of the elderly population and the improvement of the national economic level, people pay more and more attention to health. At the same time, the impact of COVID-19 on various industries has also made us realize that medicine is necessary. Pharmaceutical stocks have become one of the most prominent sectors in China's stock market in recent years. However, investors also have problems such as blind following and impulsive investment. In order to provide professional suggestions to investors, this paper makes an empirical analysis based on the stock data of pharmaceutical companies in the A-share market and the CSI 300 Index by using PE ratio, EPS ratio and CAPM model. Finally, according to the data analysis results and the nature of each pharmaceutical company, this paper suggests that investors with risk preference can invest in pharmaceutical manufacturing enterprises. In terms of those risk-averse investors, they can choose leading enterprises in the pharmaceutical retail industry. Moreover, the future market for vaccines will be a very large one with clear long-term value © 2021 ACM.