5 Great Healthcare Stocks To Buy For 2019

These developments illustrate a trend which seeks to reduce healthcare costs by creating a single entity which offers both medical and drug benefits. The trend is likely to continue next year, invigorating the sector with further mergers and acquisitions activity.

Overall, 2019 is likely to be another year filled with innovations and new technologies. Players from outside the sector are also likely to step into the healthcare space. This is more than evident from the efforts of Amazon (AMZN - Free Report), JPMorgan (JPM - Free Report) and Berkshire Hathaway (BRK-B  - Free Report) to provide healthcare benefits to 1 million employees. Longer term, the venture is an attempt to enter the ever-resilient $3.5 trillion healthcare industry.

Our Choices

As the year comes to a dismal close, the popularity of healthcare stocks among investors is likely to grow. Despite efforts to demolish the ACA, Obama’s signature healthcare law will likely remain intact. A lack of consensus on drug pricing controls is likely to prevail in the near future.

The prospects of healthcare will remain largely undimmed in 2019, thanks in no small measure to America’s aging population. This is why it makes sense to add healthcare stocks to your portfolios for next year. However, picking winning stocks may be difficult.

This is where our VGM Score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score. 

We have narrowed down our search to the following stocks, each of which has a Zacks Rank #1 (Strong Buy) and a good VGM Score and has delivered returns twice as much as the FAANG group in 2018.

Computer Programs and Systems, Inc. (CPSI - Free Report) is a provider of healthcare information technology solutions and services.

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