5 Top Healthcare Stocks For 2021

One market truism is that healthcare tends to outperform during Democratic administrations, while defense companies tend to do better under Republicans. Therefore, investors should consider healthcare stocks.

Due to COVID, many put off procedures and doctor’s visits, so it should also benefit from some sort of pent-up demand when the economy normalizes. Additionally, as employment comes back, more people will be insured which will also lead to increased demand for healthcare.

The following healthcare stocks are worth considering in ’21: Abbott Laboratories (ABT), AbbVie (ABBV), Medtronic (MDT), Zoetis (ZTS), and Anthem (ANTM).

ABT – During the Obama administration, healtlhcare stocks were major outperformers. This is likely to continue under a Biden administration. Patrick Ryan identifies the top 5 healthcare stocks for 2021: ABT, ABBV, MDT, ZTS, and ANTM.

Abbott Laboratories (ABT - Get Rating)

ABT develops, makes, and sells healthcare products. The company has four distinct segments: Diagnostic products, pharmaceutical products, vascular products, and nutritional products. ABT is currently trading at $110, merely $5 away from its 52-week high of $115.14. However, the stock has a reasonable forward P/E ratio of 25.29, meaning it might have a ceiling that is significantly higher than its 52-week high.

The top analysts are bullish on ABT, setting an average price target of $120.57, meaning there is around 10% upside to go. Of the nine analysts who have studied the stock, none recommend selling, seven recommend buying and two recommend holding. The POWR Ratings reveal ABT has “A” grades in the Trade Grade, Peer Grade, and Buy & Hold Grade components. ABT is ranked in the top five of 239 stocks in the Medical – Pharmaceuticals space. The stock provides a dividend of 1.30%.

Though ABT’s net earnings of $2.3 billion are impressive, this figure represents nearly a 12% decline from the year prior. It is quite interesting to note ABT’s nutritional segment’s sales are up more than 3% on the year. Furthermore, the company’s diagnostic segment’s sales are up more than 14%. The FDA recently approved an ABT antigen test that produces rapid results yet costs a mere $25.

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