Top 10 Stocks to Watch in the Healthcare Industry

Investing in the healthcare sector can be very rewarding, especially with the technological advancements and imminent need for better health solutions. It’s important to keep an eye on the significant players in this industry as their stocks can provide substantial returns. Here are 10 of these promising healthcare stocks that are worth considering.

1. Johnson & Johnson (JNJ)

JNJ is a dominant force in the healthcare world which has substantial financial capital and a healthy balance sheet. It operates in three segments: Pharmaceuticals, Medical Devices, and Consumer Health products. JNJ has been experiencing steady growth in its pharmaceuticals section due to strong performance in its oncology department with treatments for prostate cancer and mesothelioma. The company also offers a fair dividend yield, making it an attractive choice for any investment portfolio.

2. Pfizer Inc. (PFE)

Pfizer is another primary player in the healthcare sector with a high PEG ratio indicating potential for future earnings growth. The corporation recently had some notable pharmaceutical successes, particularly in the realm of prescription drugs. PFE’s massive portfolio includes many medicines commonly found at your local pharmacy. Their robust free cash flow helps assure a stable dividend payout to shareholders.

3. Moderna Inc. (MRNA)

Moderna Inc. (MRNA)

Moderna is an undoubtedly familiar name thanks to their successful COVID-19 vaccine development efforts. The company’s medical research extends far beyond just vaccines, enhancing its stock’s potential value over time. MRNA’s focus on mRNA technology opens infinite possibilities in the fight against virus-induced diseases and certain types of cancer.

See also  5 Emerging Industries That are Shaking up the Stock Market

4. Novartis AG (NVS)

Novartis is another company that’s been aggressively investing in their research and development capabilities. The corporation has several medicines that have achieved blockbuster status, while its vast pipeline also promises potential for future growth. It has a notable health economics balance, and with the private sector’s growing interest in healthcare, NVS carries a solid upside potential.

5. AstraZeneca PLC (AZN)

AstraZeneca, similar to Moderna, gained prominence during the pandemic with its COVID-19 vaccine campaign. Beyond this, the pharmaceutical giant is a leading producer of cardiovascular, respiratory, and cancer-related medications. AZN continually makes promising strides in various medical research areas, contributing to a stable price-earnings ratio for long-term investors.

6. UnitedHealth Group (UNH)

UnitedHealth Group (UNH)

As one of the biggest health insurance providers in America, UnitedHealth Group plays a giant role in health care services market. Its Pharmacy Benefit Management organisation, OptumRx, has been instrumental in controlling prescription drug costs in the Unites States. UNH’s substantial free cash flow gives it ample financial flexibility for future expansion and opportunistic buybacks.

7. AbbVie Inc. (ABBV)

AbbVie may be best known for its immunology drugs, but the medical device category should not be overlooked for its profitability perspective. Its new approval from Food and Drug Administration has created significant growth opportunities in the oncology sector as well. ABBV also offers an interesting dividend yield creating an additional income stream for its investors.

8. Merck & Co. (MRK)

Merck’s primary strength lies in its wide-ranging healthcare products that cater to diverse medical needs, ranging from oncology to animal health as well as vaccines. Notably, Merck has been making waves in the cancer treatment industry with innovative medical device solutions, thus increasing its stock’s valuation.

See also  Technology Sector Stocks: The Big Game Players of 2024

9. Gilead Sciences (GILD)

Gilead Sciences is focusing on antiviral drugs for treatments like HIV, Hepatitis B, and influenza. Their extensive work in the telehealth sector that drastically improved during the pandemic, can bolster GILD’s market value. Also, committed efforts towards remedies for other significant health threats provide a robust growth trajectory for Gilead’s stock.

10. Bristol-Myers Squibb (BMY)

Bristol-Myers Squibb has a solid dividend yield and a reasonable Price-Earnings ratio reflecting sound financial health. Recently, the company took strides in broadening their oncology and immunology pipelines through notable mergers and acquisitions that bodes well for future growth. Additionally, BMY’s healthcare assistance programs also provide social value improving corporate ethics perception among investors.

Scroll to Top