Best Healthcare Stocks To Buy In 2022
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The global healthcare sector continues to face the new challenges of the ongoing pandemic. The pandemic continues to dominate healthcare systems’ attention and resources. The healthcare sector continues to improve the human experience of its employees and redesign what to work, how, and where. As a result of this, there have emerged virtual health services for patients and new and improved partnerships within the industry for efficient procurement and distribution of vaccines, treatments, and supplies.
COVID-19 has accelerated and altered multiple health care trends. A few of these include changed consumer preferences and behavior, improved integration of life sciences and health care, rapidly evolving digital health technologies, new and improved talent and care delivery models, and clinical innovation. COVID-19 vaccine stocks provide an excellent return to shareholders. The health care sector faces an unfamiliar world of remote working and virtual doctor visits. Moreover, the sector is transforming while handling supply chain issues of medical supplies, personnel, and services
The global healthcare market will reach $665.37 billion by 2028, according to Verified Market Research. US national healthcare expenditure reached $4.1 trillion in 2020, or $12,530 per person, and is estimated to reach $6.2 trillion by 2028, per the Centers for Medicare and Medicaid Services. By using the stock signals, you can avoid hours of technical analysis to understand the market.
There are several different kinds of healthcare stocks within the sector. Some of the most important types are:
- Drug Stocks – These include companies that are involved in the business of developing drugs for treating diseases
- Medical Device Stocks – These include companies that are engaged in the business of making devices used in the care of patients which range from simple disposable gloves and thermometers to complex devices that include artificial heart valves and robotic surgical systems. Get to know the best tech stocks to invest in now.
- Payer Stock – These include health insurers and pharmacy benefits managers (PBMs),
- Healthcare provider stocks – They include hospitals, physician practices, home health companies, and long-term care (LTC) facilities
Best Healthcare Stocks to Invest in 2022
Here we have compiled a list of one of the best healthcare stocks to invest in during the current year.
Sr. Company Name Symbol Market Capitalization Price (As of 14th April 2022)
1. UnitedHealth Group Inc. UNH $ 503 billion $ 534
2. Johnson & Johnson JNJ $ 473 billion $ 179.9
3. Pfizer Inc. PFE $ 300 billion $ 53.12
4. AbbVie ABBV $ 287 billion $ 162.31
5. Intuitive Surgical ISRG $ 100.5 billion $ 279.7
6. Vertex Pharmaceuticals VRTX $ 73.6 billion $ 287.97
7. Teladoc Health TDOC $ 10.5 billion $ 65.18
UnitedHealth Group Inc.
UnitedHealth Group Incorporated is a healthcare and insurance company that offers healthcare products and insurance services. It operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. Get to know the list of crypto mining companies that are leading the industry.
UnitedHealth Group recently reported First Quarter 2022 Results:
- Revenues of $80.1 Billion were reported. This represents a 14% Year-Over-Year Growth, with Double-Digit Growth within the Optum and UnitedHealthcare business segment
- Earnings from Operations were reported at $7 Billion
- Cash Flows from Operations were $5.3 Billion
- Earnings were $5.27 Per Share,
- UnitedHealthcare showed substantial growth during the quarter. In this quarter, the number of people the company served grew by 1.5 million, as compared to the previous year. This growth was led by continued strong growth in Medicare Advantage and Dual Special Needs Plans and in the broader Medicaid market. UnitedHealthcare is continuously investing and expanding its portfolio of innovative, new offerings for people served by commercial benefits, including physician-led, consumer-tailored, and virtual-first products.
United Health Group has a market capitalization of over $ 503 billion. Its share last closed at a price of $534. The share of the company is on a bullish journey since the pandemic led to the downfall of the market. There are many stock advisory services that recommends few of the best stocks to its members and subscribers.
The stock closed off at $ 350.68 in 2020, after appreciating by 18.6% during the year. In the year 2021, the stock appreciated by 38% and closed off at a price of $ 502.14. in the current year, the stock has appreciated by almost 17% year-to-date.
Johnson & Johnson
Johnson & Johnson researches and develops, manufactures, and sells various products in the healthcare field worldwide. It operates in three segments: Consumer Health, Pharmaceutical, and Medical Devices. The global pharmaceutical stocks has experienced significant growth in recent years.
In the recent full-year report for 2021, the company reported:
- Total Sales of $ 93.8 billion, an increase of 13.6% from last year. This increase in sales was majorly driven by high volume. Pharma was the highest revenue-generating segment of J&J, contributing $ 52.1 billion in sales.
- Net Income of $20.88 billion, an increase of 42% from last year
- Earnings per share were reported to be $ 7.93
- Johnson and Johnson has a market capitalization of over $473 billion. Its share is trading at a price of $179.9. fueled by the pandemic, the stock of the company has been following a bullish/ trend for almost two years now.
During 2020, the stock appreciated by 8%, closing off the year at a price of $157.38. In 2021, the stock started off at a price of $160 and closed off the year at $ 171, representing a 7% growth during the year. In the current year, the stock has appreciated by roughly 6.5 % year-to-date. Investing in best ETFs is one of the most easiest and safe investment option.
Pfizer Inc.
Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic and women’s health under the Premarin family and Eliquis brands; biologics, small molecules, immunotherapies, biosimilar, and sterile injectable and anti-infective medicines, and oral COVID-19 treatment. The company also provides medicines and vaccines in various therapeutic areas, such as pneumococcal disease, meningococcal disease, tick-borne encephalitis, and COVID-19. There are multiple paid courses and technical analysis books available which provide in-depth knowledge about Technical Analysis.
In the recent full-year earnings report for 2021, the company reported:
- Total revenues of $ 81.3 billion, a whopping increase of $95%, as compared to last year
- Earnings per share were reported at $ 3.85, an increase of 137% from last year
- The company’s achievements for the year:
Reached an estimated 1.4 billion patients with medicines and vaccines
A total of 3 billion doses of Pfizer BioNTech COVID-19 vaccine were produced in 2021. And the company expects to manufacture up to 4 billion vaccines in 2022
Pfizer has a market capitalization of around $ 300 billion. Its share last closed at $ 53.12. the stock of the company is on an upward streak since the time the pandemic hit. And there seem no roadblocks for the leading COVID-19 vaccine manufacturer.
During the year 2020, the stock of Pfizer moved from $ 36.94, at the start of the year, to $ 36.81. in the year 2021, the stock performance considerably improved as COVID-19 was approved by the FDA and was in the market. The stock appreciated by a whopping 60%, from $ 36.81, at the start of the year, to $59.05, at the end of the year. In the current year, the stock of Pfizer has declined by 10 % year-to-date.
AbbVie
AbbVie Inc. discovers, develops, manufactures, and sells pharmaceuticals worldwide. It has many popular drugs targeted to specific diseases and illnesses. Investing in oil stocks offers great rewards in terms of high returns.
In the full-year report for 2021, the company reported:
- Net Revenues of $ 56 billion, an increase of 23% from last year
- Net income was reported at $ 11.5 billion, a substantial increase of 150% from last year
- Earnings per share were reported to be $ 12.7
- Abbvie has a market capitalization of around $ 287 billion. Its shares last closed at a price of $ 162.31. The stock of the company was stagnant for the past two years but it picked up pace in the last quarter of 2021 and is on a bullish run since then.
In the year 2021, the share started off at a price of $ 107.15 and closed the year at a price of $ 135.4, representing a 26% increase during the year. In the current year, the stock has accelerated and has appreciated by 20 % year-to-date.
Vertex Pharmaceuticals
Vertex Pharmaceuticals Incorporated is a global biotechnology company. The Company is focused on developing medicines that treat the underlying cause of cystic fibrosis (CF) and it has several ongoing clinical and research programs to advance and extend the treatment of CF. Check out our list of the best day trading stocks in 2022.
In the latest full-year report for the year 2021, the pharma company reported:
- Revenues of $ 7.57 billion, a 22% increase from the previous year. This increase was majorly driven by the launch of KAFTRIO, a drug used to treat cystic fibrosis.
- Net income of $ 2.34 billion, a 13.6 % decline from the previous year. This decline was caused by a $ 900 million payment to Vertex’s collaboration with CRISPR Therapeutics.
- Earnings per share were reported at $9.01. It declined by 12% from last year.
Vertex is delivering on a diversified pipeline of potentially transformative small molecule, cell, and genetic therapies aimed at serious diseases. And there are many programs in the pipeline. Also, full-year 2022 product revenue guidance is expected to be between $8.4 to $8.6 billion.
Vertex pharmaceutical has a market capitalization of around $ 73.5 billion. Its share last closed at $ 287.97. The share of the company has been following a mixed trend for the past two years. After following a bullish journey in the first half of 2021, the stock picked up a downward trend in the latter half of 2020. In the last month of 2021, the stock trend changed its course and it has been accelerating upwards.
During the year 2020 the share went from a price of $ 217.98 at the start of the year to $ 236.34 at the end of the year. In the year 2021, the share price went from $ 236, at the start of the year, to $ 219 at the end of the year. in the current year, the share exploded and it has appreciated by approx. 32% year-to-date.
Intuitive Surgical
Intuitive Surgical is the pioneer and a global technology leader in robotic-assisted minimally invasive surgery (MIS) techniques and tools. The Company’s da Vinci Surgical System offers surgeons superior visualization, enhanced dexterity, greater precision, and ergonomic comfort for the optimal performance of MIS. The Da Vince system has earned widespread popularity as it marks the use of AI in the healthcare sector. This system is smart enough to assist surgeons in complex open-heart surgeries. Blue-chip stocks is also a good investment.
In the recent full-year earnings report, Intuitive Surgical reported:
- Revenues of $ 5.7 billion, a 31% increase from the previous year
- Net income was reported to be $ 1.7 billion, a 62% increase from last year
- Earnings per share were reported at $ 4.66
Intuitive Surgical is a $100 billion company. Its share was the last trading at a price of $ 279.9. the share of the company is on an upward trend since the pandemic-driven downfall. In the last month of the year 2021, the share price started depreciating and it has declined in the current year as well.
During the year 2020 the share went from a price of $ 197.78 at the start of the year to $ 272.7 at the end of the year. In the year 2021, the share price went from $ 272, at the start of the year, to $ 359.3 at the end of the year. In the current year, the share has declined and it has depreciated by approx. 22% year-to-date.
Teladoc Health
Teladoc Health, Inc. provides virtual healthcare services in the United States and internationally. The company offers a portfolio of services and medical solutions and has a range of programs and services. The company’s award-winning, integrated clinical solutions are inclusive of telehealth, expert medical opinions, AI and analytics, and licensable platform services. The company delivers service in 125 countries.
In the recent earnings report for the year 2021, the company reported:
- Revenues of $ 2.03 billion, an increase of 86% from last year
- Net Loss of $ 429 million
- Net loss per share was reported at $ 2.73
Teledoc health aims to be the first stop along the consumer healthcare journey. It has the full year 2022 Revenue guidance of $2.55 to $2.65 billion, representing 25% to 30% growth. What sets the company apart is the breadth and depth of its services: an integrated suite of virtual care services that connect individuals with chronic, primary, acute, and specialty care.
Teledoc Health has a market capitalization of $ 10.5 billion. Its share last closed at $ 65.18. the share of the company has been following a mixed trend in the past two years. The year 2020 was marked by bullish performance. During the year 2020 the share went from a price of $ 82.96 at the start of the year to $ 199.96 at the end of the year. After peaking at $ 292.5, the share changed course and started its downward journey. In the year 2021, the share price went from $ 199.96, at the start of the year, to $ 91.82 at the end of the year.
In the current year, the share declined and it has depreciated by approx. 29% year-to-date.
CONCLUSION
Healthcare is highly regulated. The companies are exposed to the risk of not securing the necessary regulatory approvals to market new products. And this has a huge impact on the growth prospects of the healthcare stock. In addition to it, the litigation risks also stand. Any company within the healthcare sector, belonging to the biopharmaceutical segment, medical device makers, and/or healthcare providers, can be sued by patients on the basis that the company’s products and services have caused them harm.
Despite the risks, the above-mentioned companies have an overall good long-term outlook. Moreover, the changing global demographic trends coupled with the advancement in technology are expected to open new opportunities for health care companies.
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