The U.S. healthcare sector emerged as one of the very few sectors that has been able to turn the misfortunes of COVID-19 pandemic to its advantage. The ongoing COVID-19 outbreak and an aging U.S. population has spurred demand for healthcare products and services. The sector continues to undertake several technological advancements for boosting the digital space.
One of the most significant steps undertaken by most of the healthcare companies to curb the virus spread has been the accelerated adoption of telehealth services. It is worth mentioning that these services were gaining prominence for quite some across the United States but the strict lockdowns imposed by the U.S. Government and stringent social-distancing measures to curb the spread of coronavirus compelled patients to resort to telehealth services in order to avail medical help.
This, in turn, has fueled growth for telehealth market as such services have proved succesful at not only providing improved health outcomes for patients but also reducing costs. Per a
report by Arizton, the U.S. telehealth market is projected to witness a CAGR of 29% during the 2020-2025 forecast period.
The pharmacies and drug stores market has been playing a pivotal role in providing a boost to the U.S. healthcare sector amid the pandemic. This industry was quick to make a transition to remote monitoring services and drug delivery services to home. The industry players have been under tremendous pressure due to disruptions in the pharmaceutical supply chains as businesses were not allowed to operate in the usual manner. Nevertheless, the industry participants have ramped up efforts to supply the necessary immunity boosting drugs.
The pharmaceutical companies have also gone through several clinical trials and regulatory approvals for development of an effective COVID-19 vaccine. The U.S. Food and Drug Administration (FDA) authorization of the emergency use of the COVID-19 vaccine jointly developed by Pfizer and BioNTech is a result of these efforts.
The medical device industry has also gained prominence amid the coronavirus outbreak. Taking into consideration, the rising incidence of coronavirus cases, players in this space have made every possible effort to meet the spike in demand for diagnostic tests.
Stocks that Warrant a Look
Here we pick top five healthcare stocks that have managed to perform well so far this year backed by their strong fundamentals. You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Quidel Corporation ( QDEL Quick Quote QDEL - Free Report) has been making efforts to combat the virus spread by expanding testing capabilities and rolling out molecular and antigen solutions needed to diagnose the COVID-19 virus. With a market cap of $8.3 billion, the stock sports a Zacks Rank #1. Year-to-date, shares of the company have soared 161.8% compared with the industry’s growth of 2.4%. Halozyme Therapeutics, Inc. ( HALO Quick Quote HALO - Free Report) has been capitalizing on the pandemic scenario as its ENHANZE technology caught the eye of large pharma companies to jointly launch products. With a market cap of $5.8 billion, the stock carries a Zacks Rank #2 (Buy). Year-to-date, shares of the company have appreciated 139.9% compared with the industry’s rise of 8.3%. Teladoc Health, Inc. ( TDOC Quick Quote TDOC - Free Report) has been able to perform well amid the COVID-19 crisis bolstered by growing membership and increased telehealth visits. With a market cap of $28.5 billion, the stock carries a Zacks Rank #3 (Hold). Year-to-date, shares of the company have surged 135% compared with the industry’s rally of 31.5%. Acceleron Pharma Inc. ( XLRN Quick Quote XLRN - Free Report) has been primarily driven by its alliance with Bristol-Myers, which has aided the company in developing the Reblozyl drug. With a market cap of nearly $8 billion, the stock carries a Zacks Rank #3. Year-to-date, shares of the company have gained 150.3% compared with the industry’s growth of 8.4%. BioCryst Pharmaceuticals, Inc. ( BCRX Quick Quote BCRX - Free Report) has been progressing rapidly with several development programs, among which galidesivir is intended to combat the COVID-19 virus spread. With a market cap of $1.5 billion, the stock carries a Zacks Rank #4 (Sell). Year-to-date, share of the company have soared 137.7% compared with the industry’s rise of 1.6%. Zacks Top 10 Stocks for 2021
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