Top 10 Healthcare Stocks You Should Know

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.

Shares of Celgene Corporation are currently trading at roughly $90.

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 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.

Stryker Corporation stock is currently trading at roughly $175 per share.

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 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.

Tandem Diabetes stock is currently trading at about $35 per share. 

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 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.

The current price per share of United HealthGroup stock is about $270.

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 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.

Natera has a current share price around $5.

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 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.

Shares in the Johnson & Johnson company cost about $130.

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 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.

Tenet Healthcare stocks are currently priced at about $28 per share.

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 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.

The current share price or Genesis Healthcare stock is about $1.30.

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 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.

The price per share for Vertex Pharmaceuticals is currently about $.

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 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.

Shares of Ligand Pharmaceuticals are currently trading at roughly $$.

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.