The best healthcare stocks offer investors a defensive hedge in an uncertain market. But betting too much on an individual stock can be risky — and buying several individual health care stocks can be expensive. Individual stock-pickers also need to research stocks before buying, which can be time consuming. It might be tempting to invest in specific health care stocks — after all, many of the stocks listed above have enjoyed double-digit gains in the last year while the S&P 500 index has fallen.

This page shows information about the 50 largest medical stocks including UnitedHealth Group, Johnson & Johnson, Eli Lilly and, and Novo Nordisk A/S. A spin-off from Abbott Laboratories (ABT), the company’s key therapeutic areas are immunology, oncology, neuroscience, eye care, virology and women’s health. Its most popular drug is Humira, used to treat rheumatoid arthritis and approved also for psoriasis and Crohn’s disease. It has well-established drugs such as Xyrem, used to treat sudden muscle weakness and excessive daytime sleepiness in narcolepsy, and Erwinaze, which treats acute lymphoblastic leukemia, a common form of childhood cancer. The top healthcare stock earned 4 out of 5 stars from the analyst, with a fair value of $550. Humana is second in Medicare Advantage plans, with an 18% market share as of 2022, behind only UnitedHealth, which has 28% share, Utterback said.

Recent News

Clinical trials showed the risk of disease recurrence or death was reduced by 44% compared with Keytruda alone. Beyond Covid, the mRNA technology has the potential to revolutionize the drug development process. AbbVie (ABBV, $153.90) is a specialty biopharmaceutical company that specializes in developing treatments for chronic and complex conditions such as various types of cancer, autoimmune diseases and neurological disorders.

Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you’re paying less for each dollar of profit generated. Another way to get the benefit of investing in several health care stocks is through an exchange traded fund, or ETF — of which dozens are available. 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. Some P/E ratios are backward-looking, or reflecting earnings from a previous period (typically the past 12 months). Forward P/E ratios, which use earnings estimates for one year into the future, can be more helpful in assessing the valuation of fast-growing healthcare stocks.

Eli Lilly Executives Enthusiastic About Alzheimer’s Drug, Analyst Says

A recent AHA report showed hospitals have experienced surging costs in items and resources required to care for patients since the start of the COVID-19 pandemic. Click the “+” icon in the first column (on the left) to “expand” the table for the selected symbol. Scroll through widgets of the different content available for the symbol. Pages health care stocks are initially sorted in a specific order (depending on the data presented). You can re-sort the page by clicking on any of the column headings in the table. 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.

An aging baby boomer population creating additional demand for medical products and services underpins growth expectations for the healthcare sector. According to the Centers for Medicare and Medicaid Services, U.S. national healthcare expenditure is expected to reach $6.8 trillion by 2030. These are the healthcare stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio.

Advantages of Investing in Healthcare Stocks

For the latest information on investing in healthcare and updates on related investment products, sign up for our weekly newsletter here. Let’s take a look at three top health care stock examples in order to help you choose the right investments for your portfolio. A wide range of companies fall under the umbrella of healthcare stocks. Analysts agree that JAZZ is one of the best healthcare stocks out there. The consensus recommendation is Strong Buy, based on a survey of 18 analysts in the last three months, according to Nasdaq.

Telia Company AB (TELIA.ST) rose 5.3% after the Swedish telecom operator posted first-quarter core earnings above market expectations. Earnings from the sector was mixed, with Roche reporting a drop in first-quarter sales, while GSK beat quarterly analyst expectations. Shares of some of Europe’s biggest drugmakers including Roche (ROG.S), Novo Nordisk (NOVOb.CO), GSK (GSK.L) and AstraZeneca (AZN.L) fell between 2.5% and 3.9%. Healthcare companies have large upfront development expenses which can reduce profitability. Sign up for our daily newsletter for the latest financial news and trending topics.

S&P 500 Health Care Sector Index

“We also see some uncertainty around efforts to treat more ESRD patients at home. Positively, the need for dialysis clinics will not evaporate in that scenario since at-home patients need to be trained and monitored even if they don’t receive treatment in the clinic. https://investmentsanalysis.info/ However, we recognize that one of the firm’s major intangible assets (convenient locations) may become less important, which could eventually affect profitability. MRNA also said it has more than $18 billion in cash and cash equivalents on its balance sheet.

It could indicate that the company’s growth prospects are much better than those of its rivals. Be sure to also check out the stock’s price-to-earnings-to-growth (PEG) ratio, which incorporates projected earnings growth rates (typically over five years). Stocks with lower PEG ratios (especially when the ratios are less than 1) are more attractively valued than those with higher PEG ratios.

Our Services

Xyrem had comprised 76% of 2019 revenue of $2.2 billion, and that was down to about a third in 2022, with expected revenue of $3.6 billion to $3.7 billion. Bristol-Myers claims that its partnerships have brought “significant commercial success and pipeline growth,” with 12 of its 20 blockbuster drugs coming from such collaborations. Moreover, more than 60% of its current pipeline of drugs is sourced externally to complement internal competencies. BMY’s most recent acquisition was Turning Point Therapeutics in 2022 for $4 billion, which expands its precision oncology portfolio. Precision oncology refers to personalized therapies to determine the most effective treatment. Horizon developed the drugs Tepezza for thyroid eye disease, Krystexxa for chronic gout and Uplizna for neuromyelitis optica spectrum disorder (NMOSD) that causes inflammation in the nerves of the eye and spinal cord.

The second group of companies is primarily involved in the research, development, production and marketing of pharmaceuticals and biotechnology products. This sector includes some of the world’s most well-known and largest companies, such as CVS Health, Moderna, Pfizer, and UnitedHealth Group. The general public always needs doctors and insurance companies, and the health care sector can help change the tide of your overall investment portfolio. It’s no secret that the pandemic propelled health care stocks further, helping people get the products and services they needed. You’ll also likely find cheap health care stocks and fat dividends that come along with them as well.