Health care stocks: Best Healthcare Stocks Medical Stocks To Invest In
It engages in the discovery, development, manufacture, marketing, sales and distribution of biopharmaceutical products worldwide. The firm works across developed and emerging markets to advance wellness, prevention, treatments and cures that challenge the most feared diseases. The company was founded by Charles Pfizer Sr. and Charles Erhart in 1849 and is headquartered in New York, NY. Retirement investors can buy healthcare stocks in tax-advantaged retirement plans, like individual retirement accounts . But if you have a 401, you’ll likely instead have to look into mutual funds that focus on the healthcare industry, rather than individual stocks.
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#25 – HCA Healthcare
This subgroup includes hospital operators, home health companies, managed care facility operators and other companies that provide healthcare services. Abbott Labs was founded in 1888 and is headquartered outside of Chicago, Ill. The company is a large developer of pharmaceuticals and medical devices, including tests. Abbott is perhaps best known for some of its more innocuous consumables, such as PediaSure, Pedialyte and Similac.
Healthcare spending in the U.S. is seeing strong, sustained growth. National health spending is projected to grow at an average annual rate of 5.4% through 2028, reaching $6.2 trillion and 19.7% of the country’s GDP. While Johnson & Johnson is often thought of for its consumer products, it actually makes far more than Q-tips and baby powder. For example, researchers at the company developed one of the three FDA emergency authorized Covid-19 vaccines, the only single-shot option currently available. Started in 1886, J&J has a whopping 130,000 employees spread across operations in 60 countries. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
Lilly and Incyte’s Olumiant® also received approval, and so did Olumiant for certain patients with COVID-19. The company also announced plans to invest $2.1 billion in two new Indiana manufacturing sites. In Q2, UnitedHealth Group showed revenues of $80.3 billion, which grew 13% year over year. Earnings from operations were $7.1 billion, a growth of 19% since last year. Cash flows from operations were $6.9 billion, 1.3 times net income.
The health care sector is the largest employer in the U.S. — and that’s not expected to change anytime soon. According to the Centers for Medicare and Medicaid Services, health care spending accounted for 18.3% of U.S. gross domestic product in 2021, the latest year for which data is available, and it’s expected to reach an even higher percentage by 2030. NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only.
Moreover, HUM usually comes in first or second in Medicare Advantage plans in the counties where it operates, with market share closer to 30% and above in those core local markets, she added. Currently, healthcare is an “inexpensive, defensive sector” whose secular growth is the second fastest since 1986, according to a recent report from BofA Global Research. The sector has “strong fundamentals” and corporate ESG focus could drive additional healthcare spending, the report said. Pfizer’s top-selling pharmaceuticals are household names, including the antidepressant Zoloft, the erectile-dysfunction drug Viagra and the anti-anxiety drug Xanax. The company has also developed one of the leading Covid-19 vaccines, which it expects will defend against the new omicron variant of the disease.
UnitedHealth – Strong Buy, based on 14 analyst ratings, 13 Buy, 1 Hold, and 0 Sell. CVS Health – Strong Buy, based on 10 analyst ratings, 9 Buy, 1 Hold, and 0 Sell. Abbott Labs – Strong Buy, based on 15 analyst ratings, 13 Buy, 1 Hold, and 1 Sell. Dock David Treece is a former licensed investment advisor and member of the FINRA Small Firm Advisory Board. His focus is on breaking down complex financial topics so readers can make informed decisions. He has been featured by CNBC, Fox Business, Bloomberg, and MarketWatch.
Its digital health technologies and cloud-connected medical devices transform care for people with sleep apnea, chronic obstructive pulmonary disease, or COPD, and other chronic diseases. The firm operates through the Sleep and Respiratory Care and Software as a Service segments. The Sleep and Respiratory Care segment engages in the sleep and respiratory disorders sector of the medical device industry. The Software as a Service segment provides business management software as a service to out-of-hospital health providers.
Cerner Corporation, together with its subsidiaries, provides health care information technology solutions and tech-enabled services in the United States and internationally. The company also provides HealtheIntent platform, a cloud-based platform to aggregate, transform, and reconcile data across the continuum of care; and CareAware, an EHR agnostic platform that facilitates connectivity of health care devices to EHRs. In addition, it offers a portfolio of clinical and financial healthcare information technology solutions, as well as departmental and care coordination solutions. The company was founded in 1979 and is headquartered in North Kansas City, Missouri. AmerisourceBergen Corp. engages in the provision of pharmaceutical products and business solutions that improve access to care.
However, in general, it’s possible to bank on health care companies because they typically provide returns in a wide variety of markets. Moderna is one of the best healthcare stocks in this field and has a pipeline of potential treatments for a range of conditions. These include vaccines against respiratory syncytial virus , seasonal flu, and cytomegalovirus, which is the leading cause of birth defects in the U.S. Analysts agree that JAZZ is one of the best healthcare stocks out there.
Recent Analysts Ratings of Healthcare Stocks
Headquartered in New York City, Pfizer is a pharmaceuticals giant that makes medicines, vaccines and some consumer healthcare products. Pfizer has operations in more than 50 countries around the world—in 2020, only about half of its revenue came from the United States. Many health care stocks offer investors stability and profitability in both good times and bad.
Healthcare stocks belong to companies that develop pharmaceuticals, manufacture medical devices or provide medical care or health insurance. Seagen Inc. is a biotechnology company, which engages in the development and commercialization of targeted therapies for the treatment of cancer. It also engages in the advancement of therapies for solid tumors and blood-related cancers. Haleon plc engages in the research and development, manufacture, and sale of various consumer healthcare products in North America, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. The company provides therapeutic oral health, pain relief, respiratory health, digestive health, and other products, as well as vitamins, minerals, and supplements. Its portfolio of brands include Panadol, Voltaren, Advil, Otrivin, Theraflu, Sensodyne, Polident, parodontax, and Centrum.
The company faces a positive outlook in the long term as a shortage of nurses and other healthcare professionals and staff continues amid an aging population that requires more medical care. Humira accounted for 37% of total revenues in 2022, making AbbVie vulnerable to rising competition. However, the company has a strong pipeline of drugs in development such as Skyrizi for inflammation, Rinvoq for Crohn’s disease and Imbruvica for cancer. Compare the best healthcare stocks, get the most updated comparison by key indicators and discover each stock’s price target as well as recommendations by top Wall Street experts.
Pros and cons of investing in health care stocks
While the large-cap stocks listed above can be very safe bets, more volatile small-cap biotech stocks can be incredibly risky investments. In addition, drugmakers and medical device makers must convince payers, including health insurers, PBMs, and government agencies, to buy their products. If companies aren’t successful in obtaining reimbursement approvals, their growth prospects can be reduced. Some of the best healthcare stocks pay dividends — a portion of earnings that the company returns to shareholders.
Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. For this screen, we looked for the 10 most undervalued stocks in the Morningstar US Healthcare Index all carrying a Morningstar Rating of 4 or 5 stars.
The company was formerly known as DRVW 2022 plc and changed its name to Haleon plc in February 2022. Haleon plc was incorporated in 2021 and is headquartered in Brentford, the United Kingdom. UnitedHealth Group is the biggest publicly traded health insurance company in the U.S. by market capitalization. Through its network of companies, UnitedHealth offers numerous health insurance plans as well as owns Optum, which provides, among other things, healthcare benefits like health savings accounts . The healthcare sector consists of companies that provide medical services, manufacture medical equipment or drugs, provide medical insurance, or otherwise facilitate the provision of healthcare to patients. These are the top healthcare stocks as ranked by agrowthmodel that scores companies based on a 50/50 weighting of their most recent quarterly year-over-year percentagerevenuegrowth and most recent quarterly YOYearnings-per-share growth.
Eli Lilly and Company (NYSE: LLY)
“After a tumultuous few years, Becton, Dickinson is undergoing course correction. The COVID-19 revenue windfall has been reinvested, which should lift the firm’s core business growth in the upcoming years once the testing revenue fades. The biggest uncertainty remains around the return of BD’s pump infusion system to the market, which could be a material catalyst for the company whenever it occurs. Telehealth refers to the use of telecommunication technology, such as smartphones and computers, to provide healthcare and services at a distance. The comments, opinions, and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or adopt any investment strategy.
Key Trends in Healthcare
In addition to being one of the best healthcare stocks, AbbVie is also one of the best dividend stocks to own. The company offers a consistent track record of increasing its dividend payments. Since 2017, the company’s trailing dividend yield has risen from 2.7% to almost 4% at present. Last October, ABBV increased its dividend by 5% to $1.48 per share. It develops and markets prescription medicines, vaccines and biologic therapies, as well as animal health and consumer care products.
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