The 2020 pandemic revealed a lot of loopholes in the healthcare system. It showed that there is a lot that still needs to be done. Moreover, the healthcare industry alone spent over $4.1 trillion just last year: a huge increase compared to the previous few years. As there is more technology in other spheres of life, the demand is equally high in the healthcare sector.
The technologies are aimed at automating tasks, allowing people to use digital platforms to seek medical help and invent new treatment strategies. There is also advanced robotics which helps surgeons to perform less invasive surgeries. The pandemic, as well as global digitalization, has led to a lot of funds being poured out into the healthcare system. As a result, there are some healthcare stocks that one can invest in. Let’s look at the top healthcare stocks in 2022, that’s a top list according to Gainy, especially for investors who would like to jump on board before the rest of the marketplace catches wind
Top 6 healthcare stocks to keep an eye on
It’s a given that healthcare stocks outperform the market during rocky periods. Seems that the revolutionary and maturing healthcare industry could outpace the sector as a whole in 2022. As investors, business and startup owners could see that 2021 saw a real IPO boom and hype. This means that buying and selling stocks may guarantee an explosive growth in investor profits. Forbes found out from top managers and companies that 2022 seems to be the most promising year, especially for healthcare.
First of all , the market strategists and experts say that in 2022 business owners will choose and switch to investing into value stocks like banking and healthcare companies and solutions. They will choose such areas over big tech stock companies like Apple and Facebook. With 1,056 companies going public in the US market, up 120.5% from the last year, according to Stock Analysis, are online platforms, so we can see the uprise in the tech healthcare industry as well.
Moreover, before investing in stocks, it helps to understand that there are different types. The main types include stocks for:
- Drugs, including vaccinations
- Medical devices
- Health insurance
- Service providers such as hospitals
- Healthcare technologies
1. CVS Health Corporation
CVS Health Corporation has several clinics and pharmacies. Because the company is taking a customer-centric direction, there has been an increase in the number of shares over the last year. By combining retail stores and improving services, CVS Health Corporation was able to generate over $76 billion in the first quarter of 2022. The market cap stands at $121.2 billion. The leading shareholder of this stock is Harrison associates. Each stock costs $92.44.
2. Pfizer Inc.
Pfizer Inc is a pharmaceutical company that makes different products including vaccines and other drugs. Despite having operations around the world, nearly half of the revenue comes from US markets. The company developed one of the most used covid 19 vaccines, Pfizer, being used across the world.
Pfizer has made over 937 billion within the first quarter of 2022. This is even though the company reduced the prices of several drugs and vaccines for low-income countries. Pfizer is also working with these countries to build healthcare infrastructure and make pharmaceuticals more accessible.
Pfizer has a market cap of $280 billion, with a 5-year return percentage of 12. QAR Capital Management has the majority of shares which stands at 10.7 million. The returns and shares have significantly improved during the COVID-19 pandemic. The vaccine alone has been one of the most compelling reasons for companies to buy shares of Pfizer Inc.
3. AbbVie Inc.
Thus is a pharmaceutical company that produces one of the best-selling drugs, Humira. This drug is widely used to treat inflammatory conditions. AbbVie also produces a wide range of drugs used to treat prostate cancer. It has a market cap of $266.9 billion.
The one-year trailing return percentage is 34.5. Each ABBV stock costs $151.01. The leading shareholder is Arrowstreet Capital with over 4.6 million shares. The company has a strong cash flow as it is constantly looking for new pharmaceuticals to replace current drugs.
4. JNJ
Johnson & Johnson is a company that produces pharmaceutical and consumer products around the world. It also produces medical devices. The company has seen consistent growth in the past 50 years. The company has made a revenue of $23.4 billion within the first quarter of 2022.
This year, the largest shareholder is Arrowstreet Capital owning 6.65 million shares. It has 83 hedge fund holders. Johnson Johnson also launched a single-dose vaccine that boosted its stock market value. The marketing cap is $466.94 billion while each stock costs $177.44.
5. Merck &Co Inc
With a history spanning back to the 15th century, Merck & Co Inc is one of the oldest stocks. It has a market cap of 229 billion dollars. It has accumulated 84 hedge fund holders so far in 2022, 4 more than last year.
Merck &Co Inc made a revenue of $15.9 billion within the first quarter. This is more than 30% of the amount generated last year. With steady and strong cash flows, Merck Co Inc offers high dividends to investors.
Final thoughts
Healthcare industry and its market is one of the fastest-growing areas to focus on. With the growing need for technology to improve healthcare services, many players are investing huge amounts of revenue into healthcare related industries. Also, the Covid-19 pandemic has contributed immensely towards driving digital platforms and companies to improve how diagnostics and treatment strategies are developed.
There are several healthcare stocks available that deal with drugs and medical devices. Investing in these sticks is lucrative as health is an ever-growing need for everyone. Some of the best stocks to invest in include JNJ, Pfizer Inc, and CVS Health Corporation. Just like any stock, buying healthcare stocks can be risky. But with the right tracking tools, investing in these stocks can prove to be rewarding.
