Healthcare Sector In 2021: The Complete Investors Guide

The company has an overall grade of A, which translates into a Strong Buy Rating in the POWR Ratings system. It also has a Growth Grade of B, which makes sense as earnings were up 70.8% over the past year. EBITDA was also up over the past year as it rose 49.1%. The stock also has a Value Grade of A due to its low valuation. Its trailing P/E is a paltry 10.54, while its forward P/E is also quite low at 11.96.

We also grade CI based on Momentum, Stability, Sentiment, and Quality. You can find those grades here. CI is ranked #1 in the B-rated Medical – Health Insurance Industry. You can find other top stocks in that industry by clicking here.

Johnson & Johnson (JNJ - Get Rating

JNJ is one of the most recognizable names in healthcare. It has been at the forefront of providing pharmaceuticals, medical devices, and consumer health products. The company recently has seen its share of headlines as it has begun shipping its vaccine in the U.S. and is expected to have 20 million doses delivered by the end of March.

Its pharmaceutical division contributes almost 50% of total revenue and has the best future growth prospects. The company offers several industry-leading drugs, such as immunology drugs Remicade, Stelara, and Tremfya, and cancer drugs Darzalex and Imbruvica. Many of the company’s key drugs and drugs in its pipeline are specialty drugs with strong pricing power and lower regulatory hurdles for approval. JNJ also holds a high market share in the medical device space with orthopedic and Ethicon Endo-Surgery’s surgical devices.

JNJ has an overall rating of B or a Buy in our POWR Ratings system. It also has a Stability Grade of A, which means the company provides steady growth in both earnings and revenue, and price returns. JNJ also has a Quality Grade of B, indicating it has a healthy balance sheet. This is confirmed through its current ratio of 1.2, which means it has more than enough liquidity to handle short-term debts.

You can see how JNJ fares in Growth, Value, Momentum, and Sentiment by clicking here. JNJ is ranked #10 in the Medical – Pharmaceutical industry. If you want to see other top stocks in this industry, make sure to visit this link.

HCA Healthcare Inc. (HCA - Get Rating)

HCA is the largest for-profit hospital company in the country, with a 4-5% market share of the hospital industry. As of December 2020, the firm owned and operated 185 hospitals, 121 freestanding outpatient surgery centers, and a broad network of physician offices, urgent care clinics, and freestanding emergency rooms across nearly 20 states.

While the company is located in almost 20 states, its focus is in Texas and Florida. In those markets, HCA expands its market share by attracting patients, physicians, and insurance companies. It attracts physicians by investing in its facilities to improve its offerings to appeal to surgeons. It also generates higher patient approval ratings. The company attracts health insurers with transparent pricing trends. HCA has also benefited through cost curbing and expanded telemedicine offerings.

HCA has an overall rating of A, which is a Strong Rating in our POWR Ratings system. The company currently has a Growth Grade of A, which makes sense as the hospital industry is poised to return to growth this year after the pandemic. Earnings are expected to rise 41.6% in the current quarter. HCA also has a Sentiment Grade of B, which means it is well-liked by analysts. According to the StockNews Price Target feature, eighteen out of twenty-two analysts have a Strong Buy or Buy rating on the stock.

We also provide grades on Value, Momentum, Stability, and Quality, which you can grab here. HCA is rated #1 in the A-rated Medical Hospitals industry. For other top stocks in that industry, click here.

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