Healthcare, one of the largest and most complex sectors, is made up of a wide variety of companies that sell medical products and services. The healthcare sector includes companies that sell medicines, medical devices and insurance, as well as hospitals and healthcare providers. Some of the largest healthcare companies in the world are UnitedHealth Group Inc. (UNH), Pfizer Inc. (PFE) and Abbvie Inc. (ABBV). The healthcare sector has attracted the attention of investors since some of these companies received regulatory approval for drugs to treat COVID-19 and started distributing vaccines, and others are rushing to develop and develop new COVID-19 drugs. to gain. Companies are also involved in a variety of other ways, such as providing products to test for and administer treatments for the virus.
Despite this strong demand for COVID-19 treatments, health stocks have underperformed the broader market. In this story, the sector is represented by the Health Care Select Sector SPDR ETF (XLV). XLV’s total return was 29.5% over the past 12 months, below the Russell 1000’s total return of 34.2%, as of August 20, 2021. The stats in the tables below are also from August 20.
These are the top 3 health stocks with the best value, fastest growth and most momentum.
These are the health care stocks with the lowest price-earnings ratio over 12 months. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you are paying less for every dollar of profit generated.
|Best value healthcare stocks|
|Price ($)||Market Capitalization ($B)||12 month ongoing P/E ratio|
|Sage Therapeutics Inc. (SAGE)||41.98||2.5||3.3|
|Organon & Co. (OGN)||33.22||8.4||4.1|
|Quidel Corp. (QDEL)||118.75||4.9||5.8|
- Sage Therapeutics Inc.: Sage Therapeutics creates treatments for central nervous system disorders, including schizophrenia and major depressive disorder. The company reported declining net losses and a 50.9% year-over-year (YOY) increase in product revenue for the second quarter of 2021. Sage also reported positive data from a study of zuranolone in patients with major depressive disorder.
- Organon & Co.: Organon is a pharmaceutical company. It develops and manufactures drugs for reproductive health, dermatology, heart disease and allergies, and other fields.
- Quidel Corp.: Quidel is a developer and manufacturer of healthcare diagnostic products. The company provides diagnostic solutions for the detection and diagnosis of infectious, gastrointestinal, autoimmune and other diseases. The company also makes products to test for COVID-19. The company reported sharp declines in YOY net income amid declining total revenues for the second quarter of 2021, driven by lower demand for some of its flu products and PCR COVID-19 testing.
These are the top health care stocks, ranked by a growth model that ranks companies based on a 50/50 weighting of their most recent quarter-over-year (YOY) percentage revenue growth and their most recent quarterly YOY earnings per share ( EPS) growth. Both sales and profits are critical factors for a company’s success. Therefore, ranking companies by only one growth metric makes a ranking susceptible to that quarter’s accounting anomalies (such as changes in tax laws or restructuring costs) that may prevent one figure or the other from being representative of the company in general. Companies with quarterly earnings per share or revenue growth of more than 2500% were excluded as outliers.
|Fastest growing healthcare stocks|
|Price ($)||Market Capitalization ($B)||EPS growth (%)||Revenue growth (%)|
|Catalent Inc. (CTLT)||123.42||21.0||1.480||38.5|
|Regeneron Pharmaceuticals Inc. (REGN)||663.27||70.9||267.5||163.2|
|Intuitive Surgical Inc. (ISRG)||1,043.82||124.1||645.6||71.8|
- Catalent Inc.: Catalent develops delivery technologies for pharmaceuticals, biologics and consumer health products. The company’s offerings include oral, injectable and respiratory delivery technologies for use in a wide variety of pharmaceutical products.
- Regeneron Pharmaceuticals Inc.: Regeneron Pharmaceuticals is a biopharmaceutical company that sells products for the treatment of eye diseases, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases and other serious diseases. On August 20, the company announced that the UK medicines and healthcare products regulatory agency has granted conditional marketing authorization for its antibody cocktail designed to prevent and treat acute COVID-19 infection.
- Intuitive Surgical Inc.: Intuitive Surgical is a maker of robotic products used in minimally invasive surgical procedures. On August 5, the company reported that its board of directors had approved a three-for-one stock split. The split is subject to shareholder approval, with a vote scheduled for September 20. Pending approval, the split will take place on September 27.
These are the health care stocks with the highest total return over the past 12 months.
|Healthcare stocks with the most momentum|
|Price ($)||Market Capitalization ($B)||12 months sequential total return (%)|
|Moderna Inc. (MRNA)||382.98||154.6||464.8|
|Align Technology Inc. (ALGN)||681.57||53.9||129.3|
|Acadia Healthcare Co. Inc. (ACHC)||63.22||5.7||112.4|
|Healthcare Select Sector SPDR ETF (XLV)||N/A||N/A||29.5|
- Moderna Inc.: Moderna is a clinical-stage biotechnology company focused on the discovery and development of messenger RNA therapies and vaccines. It develops mRNA drugs for infectious diseases, immuno-oncology and cardiovascular diseases. Moderna’s COVID-19 vaccine is still in high demand worldwide. Moderna reported on Aug. 13 that it had received an update to emergency use authorization for its third-dose COVID-19 vaccine for immunocompromised individuals 18 years of age or older in the United States.
- Align Technology Inc.: Align Technology makes and markets the Invasalign System, a method of treating misaligned teeth. The company sells its products all over the world. For the second quarter of 2021, Align Technology reported record quarterly results, including first-ever quarterly revenue of more than $1 billion. It reported a net profit of $242.1 after a loss in the same quarter a year earlier.
- Acadia Healthcare Co. Inc.: Acadia Healthcare Company operates a network of behavioral health centers that provide psychiatric and chemical dependency services, as well as residential treatment, outpatient, and inpatient psychiatric hospital services.
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