4 Top Healthcare Stocks To Buy In September

Healthcare Text Screenshot Near Green Fern Leaf

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In addition to playing a major role in helping the world fight the COVID-19 pandemic, the healthcare industry is making solid progress in addressing the rising health issues faced by an aging global population. The integration of advanced technologies and rising capital inflows should drive the industry’s growth this year and beyond. Indeed, the global healthcare distribution market is expected to grow at 20.2% CAGR to $3.20 trillion by 2027.

Investors’ interest in the industry is evidenced by the Health Care Select Sector SPDR ETF’s (XLV) 6.3% gains over the past three months versus the SPDR S&P 500 Trust ETF (SPY) 5.3% returns. And, given the near inelastic demand for healthcare products and services, betting on fundamentally sound healthcare stocks could help to hedge one’s portfolio against a possible market correction in the near term.

Therefore, we think it could be wise to bet on quality healthcare stocks GlaxoSmithKline plc (GSK), Zoetis Inc. (ZTS), Mettler-Toledo International Inc. (MTD), and Smith & Nephew plc (SNN) now.

GlaxoSmithKline plc (GSK)

Based in the U.K., GSK discovers, develops, manufactures, and markets pharmaceutical products, including vaccines, over-the-counter medicines, and health-related consumer products worldwide. The company focuses its research on respiratory diseases, HIV/infectious diseases, vaccines, immuno-inflammation, oncology, and rare diseases.

On September 6, 2021, GSK’s Consumer Healthcare segment launched its first carbon-neutral toothbrush, Dr.BEST GreenClean toothbrush. By leveraging renewable raw materials for high-performance oral care products, this toothbrush reduces the use of fossil fuels for virgin plastic. This marks a major step in GSK’s ongoing sustainability journey in oral care.

GSK’s JEMPERLI, a programmed cell death receptor-1 (PD-1) blocking antibody, has received accelerated approval from the U.S. Food and Drug Administration (FDA) for the treatment of adult patients with mismatch repair-deficient (dMMR) recurrent or advanced solid tumors. Based on its impressive tumor response rate and the durability of response, this FDA approval should enable GSK to secure expanded market reach in the coming months.

GSK’s revenues for its fiscal second quarter, ended June 30, 2021, increased 14.7% year-over-year to £8.09 billion ($11.28 billion). The company’s adjusted gross profit came in at £5.74 billion ($7.97 billion), up 6.9% from the prior-year period. Its adjusted operating profit has been reported at £2.16 billion ($2.99 billion) for the quarter, representing a 23.4% rise from the prior-year period. GSK’s adjusted net profit increased 32.5% year-over-year to £1.41 billion ($2.25 billion). Its adjusted EPS increased 46.4% year-over-year to 28.1 pence ($0.39). The company had £3.50 billion ($4.86 billion) in cash and cash equivalents as of June 30, 2021.

Analysts expect GSK’s revenue to increase 7.3% year-over-year to $12.04 billion in the current quarter, ending September 30, 2021. It surpassed The Street’s EPS estimates in each of the trailing four quarters. The stock’s EPS is expected to grow at a 4.4% rate per annum over the next five years. Over the past six months, the stock has gained 11.7% in price to close yesterday’s trading session at $39.76.

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