Considering the stock’s forward P/E is just 19, that’s a reasonable valuation considering its expected growth, working out to a PEG ratio of just 1.5. The overall demand for the healthcare sector can be gauged by the fact that one in three adults across the world has chronic conditions like heart disease, cancer, and diabetes as of 2023. Meanwhile, one in every four individuals is expected to experience a form of mental illness during their life. According to Deloitte, over a period of 20 years, the world is expected to face an economic loss of $16.3 trillion due to mental illnesses.
The consensus recommendation is Strong Buy, based on a survey of 18 analysts in the last three months, according to Nasdaq. Instead, consider purchasing exchange-traded funds (ETFs) or index funds that track diversified indexes focused on the healthcare sector. These are less swayed by the individual ups and downs of any one company but provide solid, steady long-term growth. In recent years, e-commerce and technology have emerged as potential threats to this business model.
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.
- According to Deloitte, over a period of 20 years, the world is expected to face an economic loss of $16.3 trillion due to mental illnesses.
- The deep reductions were sustained with patient follow-up ranges from four to six months, as of the data cutoff date.
- However, if a company hasn’t been able to deliver strong revenue growth so far, it probably won’t in the future.
- In this article, we will take a look at the 15 best healthcare stocks to buy now.
Medical equipment companies produce non-drug health care products. This industry can further be broken down into medical supply companies and medical device companies. When most people hear the term “health care,” the first thing that comes to mind is often a hospital. And some health care stocks are companies that own or operate hospitals, other health care facilities and provider organizations. Today, healthcare spending in the United States alone is worth more than $4.3 trillion annually. So, consider these three stocks to buy and hold indefinitely, especially if you want reliable long-term growth and stability.
Health insurance and pharmacy benefit management
If these players fail to grant reimbursement approvals, their growth prospects can dim. The approach of the First Trust Health Care AlphaDEX Fund (FXH, $102.95) is unique in that it takes an “enhanced” approach to exchange-traded funds. In other words, FXH starts with the healthcare stocks in the Russell 1000 Index and then hand-picks the stocks it ranks highest based on measures such as sales growth, share price momentum and book value. Working with employers, governments, and healthcare providers, UnitedHealth Group’s reach is undeniable. The company serves 152 million people each year through its UnitedHealthcare health insurance plans and Optum technology and data businesses.
Disclaimer; Cramer’s Charitable Trust owns shares of Danaher and Humana. Pfizer’s set to face patent expirations on some blockbuster products, but it’s prepared. It aims to launch 19 new products or indications over an 18-month period. Next up for Axsome is a migraine candidate that it aims to submit to regulators later this year.
The biotech should start two more late-stage trials for the drug in the fourth quarter of 2023 and the first quarter of 2024. It will test Sunosi as a therapy for binge eating disorder, and for shift work disorder (a sleep disorder that sometimes affects those who work at night or non-traditional working hours). A survey conducted by the Bipartisan Policy Center showed that 63% of respondents had used telehealth as a preventative service, for a prescription refill, or for a routine visit for a chronic illness. Moreover, eight in 10 surveyed said their primary health issue was resolved and that they would likely use telehealth in the future. The continued legalization of marijuana means growth for companies in this sector.
Best Healthcare Stocks to Buy Right Now
Novo Nordisk’s Ozempic and Wegovy are GLP-1 drugs, which mimic a particular hormone in the brain to reduce appetite. Ozempic treats Type 2 diabetes, while Wegovy is approved for chronic weight management. The United States is the world’s most lucrative healthcare market, and nearly 70% of citizens are obese or overweight, a potential goldmine for Novo Nordisk. Pfizer’s existing business is also growing; management is guiding for between 6% and 8% in revenue growth for non-COVID-19 products in 2023. The stock’s forward P/E is just 10 right now, so this could be an excellent opportunity to scoop up Pfizer for when growth returns. Let’s take a closer look at two companies that are leaders in this sector and could be investments worth considering for dividend investors.
How to Buy Healthcare Stocks
You probably know healthcare conglomerate Johnson & Johnson for some of its former brands, like Tylenol and Band-Aids. Speaking of core holdings, it’s important to acknowledge that many of the leaders in healthcare are multinational companies with global reach. That’s true for domestic cyber security stocks names that do a brisk business abroad, as well as Japanese and European companies that are common names in U.S. medical facilities. When it comes to the best healthcare ETFs, the Health Care Select Sector SPDR Fund (XLV, $133.60) is the leader when it comes to assets under management.
Medtronic: Committed to research and development
These signals point to CVS being a solid long-term investment as long as the company remains a vital cog in the healthcare system. Jeff Reeves writes about equity markets and exchange-traded funds for Kiplinger. A veteran journalist with extensive capital markets experience, Jeff has written about Wall Street and investing since 2008. what is lot in trading His work has appeared in numerous respected finance outlets, including CNBC, the Fox Business Network, the Wall Street Journal digital network, USA Today and CNN Money. The ARK Genomic Revolution ETF (ARKG, $31.61) is smaller than many of the other best healthcare ETFs featured here – both in terms of its assets and its components.
In the meantime, its sales will continue growing, as Auvelity and Sunosi haven’t been approved in their current indications for very long (Sunosi’s first regulatory nod was in 2019). In my view, the full potential of Axsome Therapeutics’ pipeline isn’t yet baked into its market cap — not even close. And with its shares Forex trading 24 hours trading for just under $77 apiece, investors can grab one with $100. Both sales and earnings are critical factors in the success of a company. Companies with a quarterly EPS or revenue growth of more than 1,000% were excluded as outliers. In this article, we discuss 11 best healthcare dividend stocks to buy now.
Stem cells are one of the few naturally produced biological products that are capable of repairing the human body. The cells are primarily obtained from the amniotic fluid present inside the uterus at the time of pregnancy or the cells that are present in the umbilical cord. Their properties enable them to be used as a treatment for serious diseases such as blood cancer or damaged body organs such as the skin or the eyes. It can be hard to pick individual winners and losers among healthcare stocks. Instead of putting all their eggs in one basket, healthcare ETFs allow investors to diversify across a group of stocks or industries. And thankfully, there are a number of diversified and established funds that provide easy access to this healthcare megatrend.
However, despite the rising demand for healthcare services, the sector’s ability to deliver remains constrained due to numerous factors. Around $935 billion, or 25% of the US healthcare expenditure, is wasted due to administrative red tape or inefficiencies, pricing irregularity, and labour shortages. The global healthcare sector is expected to experience a shortage of 12.1 million skilled healthcare professionals by 2035. Experts think an active adoption of technology and virtual delivery systems can help overcome such a significant shortage of healthcare professionals in the near future. Given its unmatched size, you would think that UnitedHealth Group’s days of strong growth are probably behind it. The company’s market share of the $1.8 trillion health insurance market has room to expand further with acquisitions.