new-recommended-broker-banner new-recommended-broker-banner

Best Healthcare Stocks to Buy Right Now

Updated: 14 Sep 2021

Healthcare is big business; the global health industry is worth over $8 trillion and is expected to reach over $10 trillion by 2022, yes, trillion. I also imagine these numbers have increased significantly this year due to the coronavirus pandemic.

The sector is growing at a rapid pace, and healthcare stocks in the industry such as drugmakers, medical device manufacturers, health insurers, and healthcare providers are a great way of capitalising on that growth.

So, here are some of the best healthcare stocks to buy right now.

Best Healthcare Stocks to Buy Right Now

Trade Healthcare Stocks with eToro

eToro: 67% of retail CFD accounts lose money

Trader Rating
Take A Look

eToro is the world’s leading social trading and investing platform and is perfect for those who are looking to add healthcare stocks to their portfolio. Their platform is very user-friendly and with 0% commission to pay they are a great choice.

Best Healthcare Stocks Overall

1. Intuitive Surgical

Teladoc is a telemedicine and virtual healthcare company based in the US. Due to the nature of its business, the company saw rapid growth during the coronavirus pandemic, reporting a total revenue for 2020 of $1.09 billion, a 98% increase compared to 2019.

Clearly, the New York-based firm’s growth strategy is working. Despite a recent drop off in its share price, it has still made enormous strides forward in its goal to transform healthcare, with CEO Jason Gorevic stating that the company expects to see strong momentum across its global business in 2021.

new-recommended-broker-banner

As the coronavirus vaccine has been rolled out, Teladoc’s share price gains have subsided a little. However, they are still a great long-term hold.

Intuitive Surgical Chart

2. Teladoc Health (NYSE: TDOC)

Teladoc is a telemedicine and virtual healthcare company based in the US. Due to the nature of its business, the company saw rapid growth during the coronavirus pandemic, reporting a total revenue for 2020 of $1.09 billion, a 98% increase compared to 2019.

Clearly, the New York-based firm’s growth strategy is working. Despite a recent drop off in its share price, it has still made enormous strides forward in its goal to transform healthcare, with CEO Jason Gorevic stating that the company expects to see strong momentum across its global business in 2021.

As the coronavirus vaccine has been rolled out, Teladoc’s share price gains have subsided a little. However, they are still a great long-term hold.

Teladoc Health Chart

3. Bio-Rad (NYSE: BIO)

Bio-Rad Laboratories develops and manufactures specialised technological products for life science research and clinical diagnostics markets.

The California-based company’s fourth-quarter net sales came in at $790 million, an increase of 26.5% compared to 2019, benefitting from the demand for its Covid-19 tests and its strong performance in the biopharma segment. Sales volume in the fourth quarter was strong across all regions.

Overall, Bio-Rad is in a great financial position, and we see further upside in its share price.

Bio Rad Chart

Best Healthcare Dividend Stocks

1. UnitedHealth Group  (NYSE: UNH)

UnitedHealth Group is a managed healthcare company that offers healthcare products and insurance services and is considered the most significant health insurer in the world.

Its current dividend yield is 1.28%, paying an annual dividend of $5 per share. UnitedHealth’s dividend has grown for the last 11 consecutive years, increasing on average over 18% each year.

The company’s membership grew by more than a million members, with first-quarter 2021 profits rising over 40% to $5 billion.

2. Johnson & Johnson (NYSE: JNJ)

Johnson & Johnson, as I’m sure you know, is an enormous American company that develops medical devices, pharmaceutical products, and consumer packaged goods. It also has a drug development arm that is currently working on a coronavirus vaccine.

The company had to make the best healthcare dividend stock section due to its streak of dividend payouts. Despite the impact of the coronavirus pandemic, the company’s dividend yield is 2.52%, while its current trailing twelve-month dividend payout is $4.04.

Buy Healthcare Stocks

3. AbbVie Inc (NYSE: ABBV)

AvvieVie is a researched-based biopharmaceutical company that split from Abbott Laboratories approximately eight years ago.

The company has a strong history of dividend growth, and it will likely continue going forward. AbbieVie has a tremendous cash flow, and its share price is currently undervalued, with a current price-to-earnings ratio of 10.27.

Its current dividend yield stands at 4.82%, paying an annual dividend of $5.20 which has grown consecutively over the last 49 years.

Best Healthcare Penny Stocks

1. Revive Therapeutics (OTC: RVVTF)

Revive Therapeutics is a life sciences company that researches and develops therapeutics for rare disorders and infectious diseases.

It is another healthcare company with a potential COVID-19 treatment in the works, and so far, it has shown positive results, with Revive recently announcing it is expanding its Phase 3 trial to 50 clinical sites.

Shares of Revive are currently priced at $0.344.

2. Xeris Pharmaceuticals (NASDAQ: XERS)

Xeris Pharmaceuticals is a speciality pharmaceutical company developing injectables for indications in diabetes, epilepsy, and immunology. The Chicago-based company’s products include the Gvoke Pre-Filled Syringe and the Gvoke HypoPen.

Mizuho Securities recently maintained a Buy rating on the stock with a price target of $14, while RBC Capital kept an Outperform rating and an $11 price target. It is currently trading around the $4 per share level.

Best Healthcare Shares

Types of Healthcare Stocks and Companies

There are four domain types of healthcare stocks and companies. These are:

  • Drugmakers: These companies concentrate on the development of drugs to treat diseases and conditions. A recent example of a drugmaker would be Pfizer who, along with BioNTech, created a possible coronavirus vaccine. A smaller drugmaker is a company like Synairgen, whose shares are up 1355% for the year to date. The company is currently working on the development of flu and coronavirus treatment.
  • Medical Device Manufacturers: These companies create and develop devices that are used to care for or treat patients. An example of a medical device manufacturer is Intuitive Surgical.
  • Health Insurers: Insurers, as I’m sure most o you are aware, charge individuals and companies to cover healthcare costs when they are needed. An example of a healthcare insurer is UnitedHealth Group, which is considered the largest health insurer in the world.
  • Healthcare Providers: These companies provide people with healthcare services. Teladoc, who we mentioned above, are a great example of a healthcare provider stock.

Why Invest in Healthcare Stocks Now

You may have noticed that we are in the middle of a pandemic, and so, healthcare, especially at this time, is vital, but it won’t go away, whether we are in a pandemic or not, people will always need healthcare.

And now, as we enter a new age where people are becoming more health-conscious and aware of the importance of obtaining the best healthcare possible, investing in the industry can be an excellent way of capitalising.

What to Know Before Investing in Healthcare Stocks

There are a plethora of healthcare stocks available, and that means there is always a competitor around the corner looking to develop the next best drug, device or service. Again, if we look at coronavirus vaccines, there are three leading candidates with many others still in Phase 2 trials.

That leads nicely on to the next aspect, which is regulation. The industry is highly regulated, and even if you think a company has the next best treatment for a particular disease, it could fail to meet the regulatory requirements which will impact the company and its share price. It may also fail to meet its study endpoints which will also affect the company’s share price.

How to Start Trading Stocks Online

1. Research Healthcare Stocks

Best Healthcare Stocks

When investing in any stock, you will first need to research the company. Take a look at the companies earnings, the treatments, or products it is developing. Also, examine any debt the company may have and their ability to pay it off. Finally, look at the demand for the company’s product or service, this will help in analysing its growth prospects.

2. Find a Broker

The broker you choose is a vital part of the process. When looking for a broker, focus on aspects such as whether they are regulated in your region, offer the assets you want to invest in or trade, and the fees they charge.

3. Open & Fund an Account

Opening an account is a straightforward process with the majority of brokers. They will usually ask a series of questions before requesting some sort of identity verification, which generally involves sending a picture of your drivers license or passport. Once the account is open, you can then deposit funds. Most brokers allow for funds to be deposited via bank transfer, debit or credit card, or an eWallet.

4. Set Order Types

Order types will depend on the price you want to buy the asset at. You must understand what market and pending orders are so that you can use them to help you in your investing and trading. You will also need to learn about stop-loss and take profit orders to help you protect your capital.

5. Select & Buy Healthcare Shares

The final part is to select and buy the shares of the company you want to invest in. Remember, research is vital, and the more knowledge you have, the better you will be at making investing decisions.

Best Brokers to buy Healthcare Stocks

eToro: 67% of retail CFD accounts lose money

Trader Rating
Take a look

Tickmill: FCA Regulated

Trader Rating
Take a look

IG: Over 16k stocks to trade

Trader Rating
Take a look

Finding the right broker for you is perhaps the most important part of the process. While you can buy Healthcare stocks with most brokers on the market today, not all brokers are created equal. If you are a new trader looking to get started, or someone who has some experience in the markets, then these trading platforms are perfect. Each of the brokers above is fully regulated and provides a safe and secure trading environment, giving you peace of mind. The platforms include a wide range of stocks to choose from and educational resources to help you get started and make your first trade.

Summary

Despite the risks associated with healthcare stocks, the industry is in a good position when we look at the long term picture.

With technology continuing to change at a rapid rate, there is a constant stream of new ways in which healthcare companies can develop products and drugs to help better treat and look after patients.

It means that there is always an opportunity around the corner for investors to profit when healthcare stocks are part of their portfolio.

PEOPLE WHO READ THIS ALSO VIEWED:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .