You can read more about our editorial guidelines and the investing methodology for the ratings below. CEO Karen Lynch will lead the insurance segment, replacing Executive Vice President Brian Kane, who is leaving the company about a year after https://investmentsanalysis.info/ arriving, the health care giant said Wednesday. Since then, the company has developed and marketed tests and diagnostic systems for use in medical analysis laboratories, blood transfusion centres and industrial control laboratories.
AMN Healthcare Services
FCF is the cash left over after operating expenses and capital expenditures (which includes money spent on buildings, equipment, and land). As with the cash position, the higher a company’s FCF, the stronger its financial position. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches health care stocks millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Our editors are committed to bringing you unbiased ratings and information. We use data-driven methodologies to evaluate financial products and companies, so all are measured equally.
We and our partners process data to provide:
But the firm’s fortunes have also revived thanks to a major cost-cutting push, expansion in China and Japan, and new products on the market, including Kanjinti, for breast cancer. Just as investor excitement over artificial intelligence drove returns in the technology and communication services sectors in the past year, investor enthusiasm for weight-loss drugs was a key driver behind health care stock returns. The past year may be remembered as a groundbreaking period for the health care sector, due to the excitement surrounding promising new weight-loss drugs that have quickly become highly sought after worldwide.
Key factors for finding the best healthcare stocks
These 10 defensive stocks supply investors with reliable earnings, and often dividends, when markets look uncertain. Having said that, AMN is exposed to fluctuations in the larger labor markets and any hiccups in the growth of healthcare workers. Healthcare staffing firms have historically been hard-hit after economic downturns, and we expect this to hold true in the future.
How to Buy Healthcare Stocks
These 10 undervalued healthcare stocks offer investors attractive entry points into a defensive sector. The healthcare sector offers a wide range of large and small companies to invest in. You can invest in mutual funds and exchange-traded funds (ETFs) to add diversification to your holdings. An ETF works like a mutual fund — a pooled investment — but you can buy and sell at any time during the trading day, like a stock.
Be sure to also check out the stock’s price-to-earnings-to-growth (PEG) ratio, which incorporates projected earnings growth rates (typically over five years). Stocks with lower PEG ratios (especially when the ratios are less than 1) are more attractively valued than those with higher PEG ratios. The effects of government policy changes on health care stocks are more complex than you might think, and history suggests that the sector is good at adapting to big reforms. The Health Care SPDR Select Sector Fund actually outperformed the S&P 500 in the decade after the Affordable Care Act was passed in 2010.
Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. And, when there’s something everyone needs, there’s a huge opportunity for investors. Neither the author nor editor held positions in the aforementioned investments at the time of publication. Researching an ETF is generally much quicker than researching each individual stock in that ETF — but it’s still important to do. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.
- Similar to the drug business, this segment is research and development intensive, and Bayer has developed a strong portfolio of products.
- The company also announced plans to invest $2.1 billion in two new Indiana manufacturing sites.
- AMN Healthcare Services currently trades 35% below our fair value estimate of $95.00.
- The deal also beefed up Bristol’s pipeline of new drugs and its cancer-treatment portfolio.
CVS Health Corp. still runs one of the nation’s largest drugstore chains and a huge pharmacy benefit management business that operates prescription drug coverage. It also covers nearly 27 million people through its Aetna insurance arm. Its broad offerings include products that address cardiac, vascular and neurological disorders, among other ailments. It also makes surgical and surgery products, such as stapling devices and mesh implants. The company logged $214 million in revenue in 2019, but profits aren’t expected until at least 2022.
The overall demand for products and services related to health care is likely to remain steady or even increase over time, particularly as populations age. The aging baby boomer population, for instance, has prompted the Centers for Medicare and Medicaid Services to predict nationwide health care expenditures of $6.8 trillion by 2030. Our list of the best healthcare stocks to buy now closes with Ionis Pharmaceuticals. Ionis has attracted big-name partners like Biogen and Roche, and it has one of the broadest pipelines in the biotech sector.
COVID-19 sales created a temporary tidal wave of growth for Pfizer, but investors fled the stock once sales and earnings normalized. Pfizer trades under 12 times earnings despite analysts expecting nearly 11% annualized earnings growth over the next three to five years. It’s generally a great buying opportunity when a stock’s P/E ratio and growth rate are the same.
