This affordable healthcare stock trades at a 48% discount to our fair value estimate of $52.00. In addition to healthcare, Bayer runs a leading crop science segment, which includes crop protection products (pesticides, herbicides, fungicides) and the fast-growing plant and seed biotechnology business. Similar to the drug business, this segment is research and development intensive, and Bayer has developed a strong portfolio of products.
What to look for in healthcare stocks
The SEC filings also include statements that can help evaluate the financial strength of a company. If it isn’t, make sure you learn how it plans to achieve profitability and how quickly it expects to do so. Medical Devices ETF, for example, is focused on the medical-devices industry.
After Earnings, Is Coinbase Stock a Buy, a Sell, or Fairly Valued?
The company has developed leading technologies, such as Alaris IV pumps, Pyxis automatic dispensing systems, MedMined data mining software and the CareFusion patient identification system. Additionally, the company also manufactures medical and surgical products and is a leading provider of pharmaceutical and medical supplies. These developments are improving the standard of care, says Julia Angeles, an investment manager with a specialty in health care at investment firm Baillie Gifford.
- © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.
- But if you have a 401(k), you’ll likely instead have to look into mutual funds that focus on the healthcare industry, rather than individual stocks.
- The increasing demand for capital across the global biopharma industry has been propelling Royalty Pharma’s growth in recent years.
- Healthcare utilization is expected to increase at a solid clip over the coming decades, and the pipeline of healthcare professionals is not expected to keep pace, especially in light of the coronavirus pandemic.
Research stocks, ETFs, or mutual funds
With West, you “benefit from the potential for a vaccine without having to place a bet on the winner,” says Kaufman. The deal also beefed up Bristol’s pipeline of new drugs and its cancer-treatment portfolio. Morgan Stanley analyst David Risinger says the combined firm has trials underway for treatments for seven cancer types, including lung, bladder and liver cancer, with key results expected in 2020 or 2021. The drugs could bring in $12 billion in annual U.S. sales over the next three to five years.
Healthcare Stock Share Performance
Outside of MS, we think Biogen’s growth potential looks solid, although Alzheimer’s market evolution is highly uncertain. We think sales of spinal muscular atrophy drug Spinraza (partnered with Ionis) will remain around the $2 billion level, although competition from Novartis (gene therapy Zolgensma) and Roche (oral drug Evrysdi) has cut into growth. That said, the launch has been off to a slow start and we expect global sales will reach only about $250 million in 2024 as diagnosis and treatment pathways become more standardized. New drugs like postpartum depression drug Zurzuvae and Friedreich’s Ataxia drug Skyclarys further support Biogen’s portfolio.
For dynamically-generated tables (such as a Stock or ETF Screener) where you see more than 1000 rows of data, the download will be limited to only the first 1000 records on the table. For other static pages (such as the Russell 3000 Components list) all rows will be downloaded. For the major indices on the site, this widget shows the percentage of stocks contained in the index that are above their 20-Day, 50-Day, 100-Day, 150-Day, and 200-Day Moving Averages. The author or authors do not own shares in any securities mentioned in this article.
Fidelity Select Health Care (FSPHX, 0.70%) is a member of the Kiplinger 25, our favorite no-load funds. Since Eddie Yoon took over in 2008, the fund has returned 16.5% annualized, beating the 13.2% average gain for health funds. Yoon invests big slugs in established firms, such as Roche Holdings https://investmentsanalysis.info/ and UnitedHealth, and boosts returns with light bets (less than 1% of assets each) in burgeoning biotech and medical-equipment stocks. Veeva Systems (VEEV, $217) offers cloud-computing services, among other tech offerings, to health care companies including Eli Lilly, Gilead Sciences and Merck.
It treats pulmonary arterial hypertension, a rare, progressive type of high blood pressure that weakens arteries in the lungs and heart. “Most PAH patients die within five to seven years,” says Baron’s Riegelhaupt. Acceleron’s PAH drug, unlike others health care stocks that treat only the symptoms, has indicated it can slow the disease by “telling the arterial muscles to relax,” he says. And remember, you can take a diversified approach to the sector by targeting the best healthcare ETFs (exchange-traded funds).
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. Adjusted operating income, which excludes things like capital gains, also dropped 12% for CVS Health’s pharmacy business, which runs thousands of drugstores nationally. The company filled more prescriptions in the second quarter, but it has been dealing with tighter reimbursement for those drugs. Rising claims from the company’s Medicare Advantage coverage have hurt CVS Health for much of this year and contributed to repeated trimmings of its outlook for 2024. Medicare Advantage plans are privately run versions of the federal government’s coverage program mainly for people age 65 and older. One day soon, a routine Guardant Health (GH, $77) blood test may be able to detect cancer before symptoms appear.
The two companies are awaiting regulatory approvals for gene-editing therapy exa-cel (also known as CTX001) to treat beta-thalassemia and sickle cell disease, two rare blood disorders. They’re also working together to develop therapies targeting type 1 diabetes. Like many other healthcare companies, Thermo Fisher has jumped into the Covid-19 business.
CVS is the only company from the healthcare plans industry on our list of affordable healthcare stocks. As a top-tier medical insurer, pharmacy benefit manager, and pharmacy retailer, we believe CVS possesses enough scale-related cost advantages to generate economic profits for the long run. CVS currently looks 37% undervalued relative to our $93.00 fair value estimate. The overall demand for healthcare products and services is likely to remain steady and to even increase as populations age. This means that health care stocks often provide opportunities for short- and long-term growth.
The most important thing you’ll want to check out with any healthcare stock is the company’s growth prospects. However, if a company hasn’t been able to deliver strong revenue growth so far, it probably won’t in the future. 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. As previously mentioned, due to the Covid-19 pandemic, the healthcare industry has gained increasingly greater attention. That is why investing in or trading on healthcare stocks is considered by many to be an effective way to diversify your portfolio and to ride the wave of the healthcare industry while it is at its peak.
