
In recent years investors have been blessed with a frequently bullish market and a tentative approach on the part of the Treasury Department. These trends have inspired tepid optimism on the part of investors straining to identify which industries are thriving in an artificially relenting environment, and which are here to stay. Despite political uncertainty, the industry continues to expand and demand is only going to increase. If you are cultivating an investment portfolio that is going to succeed in the next three or four decades, healthcare stocks are an important tool for achieving your financial goals.
Product FAQ
Any investment strategy warrants extensive scrutiny. We cannot resolve every curiosity our readers might havehave regarding any of the industries or investment options we cover, yet we have, and will continue to, do our best to resolve our readers' most common inquiries succinctly beforehand as we have done below.
Comparison Table
Title | Trading Price |
---|---|
Celgene Corporation (CELG) | trading at roughly $90 |
Stryker Corporation (SYK) | trading at roughly $175 per share |
Tandem Diabetes Care (TNDM) | trading at about $35 per share |
United HealthGroup Incorporated (UNH) | stock is about $270 |
Natera (NTRA) | share price around $5 |
Johnson & Johnson (JNJ) | cost about $130 |
Tenet Healthcare Corporation (THC) | about $28 per share |
Genesis Healthcare (GEN) | stock is about $1.30 |
Vertex Pharmaceuticals (VRTX) | currently about $190 |
Ligand Pharmaceuticals (LGND) | trading at roughly $255 |
1. What Are Healthcare Stocks?
2. What Does the Future Look like for Healthcare Stocks?
3. How Do Healthcare Stocks Help My Investment Portfolio?
4. Where Can You Purchase Healthcare Stocks?
How We Reviewed
To provide our readers with the most accurate possible review, we took stock of companies in all sectors of the healthcare industry. We based our assessments on information available through stock exchanges, independent analytical organizations, and authoritative media organizations that cover finance.
Overall Price Range of the Healthcare Stocks Reviewed in This Article
The share prices of the healthcare stocks we reviewed for this article range from just over a dollar per share to more than $250 per share. While share price can be a significant factor in determining the viability of an investment strategy, Earnings Per Share (EPS) is a far more informative figure as it reflects the amount an investor must invest to make a dollar. Share price is not necessarily indicative of value.
What We Reviewed
Celgene Corporation (CELG)

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Features
Celgene Corporation primarily produces drugs to treat cancer and inflammatory diseases. Spending on cancer treatments is expected to reach $150 billion by 2020 and Celgene has the largest market share and best positioning to take advantage of the growth in spending in their strongest sector. Celgene's stock price dropped dramatically last October after a phase 3 trial failure of a treatment for Crohn's disease into which the company had poured tens of millions of dollars. While this is unfortunate for the company, the circumstance allow investors to acquire shares of the company at a reasonable price.
Pros
Cons
Price
Shares of Celgene Corporation are currently trading at roughly $90.
Future of the Company
Despite the recent market pullback, Celgene seems poised for a resurgence. Their failed clinical trails prompted the company to refocus on expanding their product pipeline through acquisitions and their drugs are selling better than ever in a growing segment of the lucrative healthcare market.
Stryker Corporation (SYK)

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Features
Stryker is unique among healthcare stocks in that the company deals exclusively in medical supplies. The company has enjoyed a decade of steady revenue growth. The company's stock has been steadily increasing in value, and the bullish indications show no signs of an impending decline.
Pros
Cons
Price
Stryker Corporation stock is currently trading at roughly $175 per share.
Future of the Company
The company's share of the medical supplies market shows no signs of shrinking in the near future. The company recently acquired a Swiss medical supplies company, signaling a possible move to increase their market share in Europe and elsewhere.
Tandem Diabetes Care (TNDM)

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Features
Tandem Diabetes Care produces a variety of products related to treatment for diabetes. The company's flagship product is an insulin pump that automatically monitors the blood sugar levels of diabetic patients. Like Skylar Corporation, Tandem avoids the myriad political complexities that prove burdensome for direct care providers and drug manufacturers. With nearly 30 million diabetes patients in the country, and an additional 1.5 million new cases each year, this company's market isn't going anywhere.
Pros
Cons
Price
Tandem Diabetes stock is currently trading at about $35 per share.
Future of the Company
The company recently patented a new insulin pump with a digital readout. This product is likely the new industry standard and may give Tandem a distinct advantage over its competitors in the coming months and years.
United HealthGroup Incorporated (UNH)

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Features
United HealthGroup is one of the most ubiquitous health insurance providers in the country. The company sells insurance plans to individuals and employers including medicaid plans, medicare supplements, and plans specifically for children. The company also markets software and information technology related to the healthcare industry.
Pros
Cons
Price
The current price per share of United HealthGroup stock is about $270.
Future of the Company
The company posted an all-time stock price high earlier this year and the company has been able to more or less maintain their standing. Their projected revenue growth for 2018 has investors clamoring for shares. Investor confidence is reflected in sustained value.
Natera (NTRA)

Features
Natera is a genetic testing and diagnostics firm that specializes in DNA analysis. Since the company's IPO in 2015, Natera's stock performance has been disappointing. The company staged a recovery beginning early this year as investors heard rumors about reassuring cash flows and turned their eyes to the products in Natera's pipeline.
Pros
Cons
Price
Natera has a current share price around $5.
Future of the Company
Natera has recently devised an innovative test that detects early rejection in liver transplant patients. In trials, the new test had a 92% sensitivity, which is far more accurate than any similar product on the market. Conveniently for Natera, Medicare recently agreed to pay $2,900 every time one of the nearly 200,000 people with a transplanted kidney is tested.
Johnson & Johnson (JNJ)

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Features
Johnson & Johnson is an iconic American brand with a broad, diversified business model. More recently the company has been moving aggressively to expand its share of the pharmaceutical market. The company recently acquired the $30 billion company Actelion, a major European drug manufacturer, signaling a willingness to build pharmaceutical revenue around the world. If that isn't enough to pique your interest, the company pays a 2.6% dividend annually. Johnson & Johnson is the blue-chip option among healthcare stocks.
Pros
Cons
Price
Shares in the Johnson & Johnson company cost about $130.
Future of the Company
In addition to the company's massive market share, dividends, and recent acquisitions, they currently have 39 new treatments in the third stage of the FDA approval process.
Tenet Healthcare Corporation (THC)

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Features
Tenet Healthcare is a private, for-profit hospital company that has struggled to maintain market traction since the implementation of the Affordable Care Act. Despite strong annual revenues, the company has faltered due to interest payments on a heavy debt burden. After a slew of positive earnings reports, Tenet's stock price surged 128% as investors finally seemed confident the company would pull through.
Pros
Cons
Price
Tenet Healthcare stocks are currently priced at about $28 per share.
Future of the Company
Tenet is currently attracting more patients and profiting more per patient than it has since the implementation of the Affordable Care Act based on some political uncertainty. The company's future will be largely determined by the political future of the country and the healthcare industry in Texas, Tenet's home state.
Genesis Healthcare (GEN)

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Features
Genesis healthcare is well positioned in that the company has a large market share in a growing market. The company provides short-term rehabilitation, skilled nursing, and long-term care services aimed primarily at elderly patients. The company operates more than 500 residences through 34 states and works in coordination with more than 1,700 healthcare providers in 45 different states.
Pros
Cons
Price
The current share price or Genesis Healthcare stock is about $1.30.
Future of the Company
As the American population ages, long-term care and skilled nursing facilities will be increasingly in demand, and Genesis is well positioned to expand.
Vertex Pharmaceuticals (VRTX)

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Features
Vertex is a Boston-based biotechnology firm that specializes in treatments for viral infections, inflammatory and autoimmune disorders, and various types of cancer. The company has an annual revenue north of $2 billion and yet is still considered undervalued among healthcare stocks by investors. Sluggish valuation is in part due to the companies debt-load, which is large but nor unreasonable for a company with that kind of revenue to get away with it. Vertex ranks among the likes of Johnson & Johnson as a blue chip option amongst healthcare stocks.
Pros
Cons
Price
The price per share for Vertex Pharmaceuticals is currently about $.
Future of the Company
The company has an impressive and seemingly unshakable market share with strong potential for earnings and revenue growth in the coming year. The worst-case scenario is stable, qualified growth.
Ligand Pharmaceuticals (LGND)

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Features
Ligand Pharmaceuticals occupies an interesting position in relation to other healthcare stocks. The biopharmaceutical company serves as a complimentary labor force and body of knowledge for pharmaceutical companies that develop and patent prescription medications. Because the company does not actually produce and sell drugs, the company is, to an extent, insulated from the aforementioned complexities of government's role in determining drug prices. This business model means the company has the potential to generate royalties on popular drugs without accepting the onus of the risk involved.
Pros
Cons
Price
Shares of Ligand Pharmaceuticals are currently trading at roughly $$.
Future of the Company
As of right now, there is no reason to believe the market for firms like Ligand will decrease nor is it likely that Ligand's share of that market will lose ground to any major competitors.
The Verdict
No investment portfolio could be considered sufficiently diversified if it did not include a strong stake in the healthcare industry. Market growth will be large and consistent based on American demographics and the industry is prepared for the necessary expansion. Whether you are looking for a blue chip opportunity or an unknown company on the rise, you would be remiss not to experiment in the healthcare industry.