The Top Healthcare Stocks to Buy With $100 The Motley Fool

At 21 times forward earnings-per-share estimates, the average S&P 500 component is 35% more expensive than the historical average of about 15 times. The trial investigated the efficacy of Cabometyx as a therapy for advanced pancreatic or extrapancreatic neuroendocrine tumors. “During the quarter we exited our position in Baxter, having originally bought in 2017 as a Low Risk Turnaround with clear Stalwart attributes.

  • To identify cheap healthcare stocks we first made a list of all healthcare companies that have a price to earnings ratio of less than 10.
  • Since its founding in 1949, Medtronic has established itself as a trusted name and a leader within the medical devices space.
  • For more stocks, head on over to 5 Best Healthcare Stocks To Buy Now.
  • That means a long-term demographic tailwind that will provide growth and stability for the healthcare sector – and positive returns for the best healthcare ETFs.

The drugmaker boasts solid financial performance, with steadily increasing revenue and profitability. Revenue has risen from $46.8 billion in 2019 to $59 billion in 2022. Net income has similarly risen, from $9.8 billion ($3.81 per share) in 2019 to $14.5 billion ($5.71 per share) in 2022.

Clinical trials showed the risk of disease recurrence or death was reduced by 44% compared with Keytruda alone. MRNA also said it has more than $18 billion in cash and cash equivalents on its balance sheet. Moderna (MRNA, $138.8) is a biotechnology company that burst into the public consciousness during the pandemic, known for its messenger RNA (mRNA) technology that enabled the rapid development of a COVID-19 vaccine. Meanwhile, the company is working to diversify its revenue sources. 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.

Best Healthcare Stocks to Buy Right Now

Merck (MRK, $106.24) is one of the largest pharmaceutical companies in the world. It develops and markets prescription medicines, vaccines and biologic therapies, as well as animal health and consumer care products. Health insurers and pharmacy benefit managers are sometimes collectively referred to as “payers,” as their role is to arrange payment for health care services. With that in mind, it’s no wonder that health care stocks have outperformed the S&P 500 index over the past five years.

You’ll love Pfizer (PFE 3.37%) for its dividend — and an exciting new phase of growth on the horizon. Pfizer has raised it for the past 14 years and continues to make increases a priority. Right now, the company will pay you $1.64 per share annually, which represents a yield of 4.27%, just for investing in the company. Faizan Farooque is a contributing author for and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence.

In the second quarter, Axsome’s top line was just $46.7 million although that was much better than the $8.8 million reported in the year-ago period. The company is targeting metastatic colorectal cancer and advanced kidney cancer Me estafaron como recupero mi dinero with its most advanced non-Cabometyx candidate, zanzalintinib. There is unmet need in both of these areas; the five-year survival rate for colorectal cancer drops substantially if it’s caught after it has metastasized.

And it could make two regulatory submissions within the next nine months, for AXS-07 in migraine and AXS-14 in fibromyalgia (a chronic disease that causes pain and sleep problems). So, Axsome Therapeutics’ lineup will look very different within the next two to three years. Axsome recently started a late-stage study for Sunosi in treating ADHD.

Types of Healthcare Stocks

If you want to read about some more healthcare stocks, go directly to Top 5 Healthcare Stocks to Buy. “Our large commitment to UMG required that we raise cash from the sale of one of our other investments. In light of the high quality of companies in our portfolio, this was a difficult decision to make. Ultimately, we chose to sell Agilent, as its current share price approached our conservative estimate of intrinsic value. Many healthcare companies are also highly dependent on Medicare reimbursement levels. Changes will soon be implemented for Medicare that will allow the program to negotiate prices with drugmakers.

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Another $14.7 billion was derived from the medical devices segment (like FreeStyle Libre continuous glucose monitors). The nutrition segment, with products like Similac infant formula, chipped in $7.5 billion in revenue. And the established pharmaceuticals day trading tips segment that sells generic medicines in emerging markets contributed the remaining $4.9 billion in revenue in 2022. UnitedHealthcare offers health insurance to individuals, employers, the government, and Medicare and Medicaid patients.

Strong companies can be found within each type of healthcare stock. Morningstar analyst Debbie Wang said AMN’s ability to provide “almost any type of medical worker” appeals to its customers as they can use one vendor for all their medical hiring needs. “These managed services relationships have been a major focus for AMN Healthcare, and the firm has become Faithful Finance one of the premier HR managed services providers as a result.” The top healthcare stock earned 4 out of 5 stars from the analyst, with a fair value of $550. She expects Humana revenues to grow around 10% compounded annually through 2027, earnings per share to increase 13% compounded annually and free cash flow to rise to $6 billion in the same timeframe.

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Data from these cohorts will be used to inform our dose selections decision for subsequent pivotal studies. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool has positions in and recommends Pfizer and Seagen. Novo Nordisk (NVO -0.63%) isn’t new to the pharmaceutical industry. It developed slow-acting insulin in the 1930s, and is one of the world’s major insulin manufacturers today.

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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. Still, analysts’ consensus price target of $81.47 represents expected upside of more than 18% for BMY stock over the next 12 months or so. Amgen (AMGN, $231.66) is a biotechnology company that develops and markets prescription drugs for patients suffering from serious illnesses. It made its name with drugs for anemia and neutropenia − Epogen and Neupogen, respectively − three decades ago and continues to bring innovative drugs to its pipeline.

And as the global health insurance industry grows to $2.6 trillion by 2028, organic revenue can keep growing at a healthy pace. 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 (RSV), seasonal flu, and cytomegalovirus, which is the leading cause of birth defects in the U.S. Many health care stocks offer investors stability and profitability in both good times and bad. But the sector is not without risks — particularly when the government is involved.

MRK has a diversified portfolio of high-margin drugs across multiple therapeutic areas, with its blockbuster Keytruda drug accounting for more than a third of total revenues, according to its latest SEC filing. The higher the ratio, the more ably a company can meet its debt payments, dividend payouts and other obligations. Neither the author nor editor held positions in the aforementioned investments at the time of publication. Researching an ETF is generally much quicker than researching each individual stock in that ETF — but it’s still important to do.

The company also has reported positive phase 3 data for a candidate for Alzheimer’s disease agitation. In the first quarter, consolidated revenue and consolidated adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) beat Teladoc’s expectations. It’s made moves to better match the company’s cost structure to the pace of growth and aims to grow and favor the path to profitability at the same time. As a member of the S&P 500 with at least 25 consecutive years of dividend increases, Medtronic boasts a track record as a Dividend Aristocrat. The company is also running a phase 3 study for AXS-12 as a potential medicine for narcolepsy.

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