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3 Top Ranked Stocks for Exposure to the Medical Sector
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The Covid-19 Pandemic was a reminder as to the importance of healthcare to society. This could also be true for investors. Companies like Moderna, Pfizer, and AstraZeneca have certainly made their way into many portfolios.
Now that we are moving towards a post pandemic world, it will still be beneficial for investors to keep exposure to top healthcare equities. The healthcare business offers attractive defensive attributes that are so valuable in the current uncertain environment. As such, adding healthcare stocks to the portfolio brings much needed diversification.
Let’s take a look at three highly ranked stocks in the Medical Sector that can help diversify the portfolio. Keep in mind that a top Zacks Rank is synonymous with positive earnings outlook.
The first medical stock on the list is Lantheus Holdings Inc (LNTH - Free Report) . Lantheus develops, manufactures, distributes, and sells diagnostic medical agents and diagnosis products for cardiovascular diseases among others.
Lantheus provides its services to hospitals, clinics, group practices, integrated delivery networks, and wholesalers.
LNTH currently sports a Zacks Rank #1 (Strong Buy) with its EPS estimate revisions on the rise. Lantheus Holdings earnings are expected to climb an outstanding 628% to $3.57 a share in 2022, based on Zacks estimates. Fiscal 2023 calls for another 13% earnings growth. Top line growth is expected as well, with sales set to jump 111% this year and another 11% in FY23 to $1 billion.
Year to date, LNTH is up a very impressive +190%, crushing the S&P 500, which is down -18%. Also, in comparison LNTH’s Medical Products Markets sub industry is down -42% YTD. Even better, over the last five years LNTH has climbed a staggering +380% to crush the benchmark and its Zacks Sub Industry.
Image Source: Zacks Investment Research
The Medical-Products Industry is currently in the bottom 28% of over 250 Zacks Industries, but LNTH has clearly shown itself to be an industry leader. LNTH currently trades around $83 a share after recently reaching 52-week highs. At current levels, LNTH has a forward P/E of 24.1X vs. the industry average of 21.4X. Considering its growth prospects it is important to note that LNTH’s forward P/E is lower than the 112.7X its saw earlier in the year and its median of 30.7X. This may be reason to believe that LNTH could be poised to reach higher highs, particularly as estimates continue to go up.
The average Zacks price target of $103, offers 20% upside from current levels.
ModivCare is a technology-enabled healthcare services company that provides integrated supportive care solutions for public and private payors and their patients.
Year to date, MODV is down -27% to underperform the S&P 500. However, over the last five years MODV is up a stellar +109%, to outperform the benchmark at +62%,
ModivCare currently trades around $107 a share, nearly 43% below its 52-week highs. MODV has a forward P/E of 15.9X, which is below the industry average of 17X. Also, MODV is trading well off its decade-long highs of 46X and below its median of 19.9X.
Image Source: Zacks Investment Research
MODV currently lands a Zacks Rank #1 (Strong Buy) as it appears to be trading at a discount. Earnings are expected to be down 13% this year from the year-earlier level, based on Zacks estimates. However, FY23 earnings are projected to be up 15% to $7.89 a share. Although earnings are down this year, top line growth is projected to be up 19% and another 6% in FY23 to $2.54 billion. Importantly, analysts are steadily raising their estimates. The 2022 EPS estimate of $6.84 is up 8.7% over the last two months from $6.29. Similarly, next year’s estimate of $7.89 has increased 6.3% over the last two months.
Plus, the average Zacks price target suggests upside of 33% from current levels.
ShockWave Medical is focused on developing products for treatment of atherosclerotic cardiovascular disease.
SWAV is up an impressive 61% in 2022, with earnings estimates on the rise. Even more impressive, over the last five years SWAV is up an astonishing 800% to blast the benchmark.
Image Source: Zacks Investment Research
Trading around $284 a share, SWAV has a forward P/E of 113.4X. This is much higher than the industry average of 28.1X but the earnings growth for SWAV have been stellar. Also, SWAV’s forward P/E is lower than the high its saw earlier in the year of 145.9X and getting closer to the median of 100.4X.
According to Zacks estimates, SWAV earnings are expected to jump an astounding 1,088% at $2.57 a share in 2022. Fiscal 2023 earnings are expected to rise another 33%. Shockwave’s sales are projected to be up 102% this year and another 29% in FY23 to $621 million.
Shockwave’s positive estimate revisions have landed SWAV a Zacks Rank #1 (Strong Buy). SWAV has also beaten earnings expectations for five consecutive quarters.
Bottom Line
Post pandemic, Medical Sector stocks may become more common in many investors portfolios. Many Medical stocks offer great growth prospects and may even provide defensive safety.
It is certainly beneficial for investors to consider these equities as the importance of healthcare has never been greater.
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3 Top Ranked Stocks for Exposure to the Medical Sector
The Covid-19 Pandemic was a reminder as to the importance of healthcare to society. This could also be true for investors. Companies like Moderna, Pfizer, and AstraZeneca have certainly made their way into many portfolios.
Now that we are moving towards a post pandemic world, it will still be beneficial for investors to keep exposure to top healthcare equities. The healthcare business offers attractive defensive attributes that are so valuable in the current uncertain environment. As such, adding healthcare stocks to the portfolio brings much needed diversification.
Let’s take a look at three highly ranked stocks in the Medical Sector that can help diversify the portfolio. Keep in mind that a top Zacks Rank is synonymous with positive earnings outlook.
Lantheus ((LNTH - Free Report) )
The first medical stock on the list is Lantheus Holdings Inc (LNTH - Free Report) . Lantheus develops, manufactures, distributes, and sells diagnostic medical agents and diagnosis products for cardiovascular diseases among others.
Lantheus provides its services to hospitals, clinics, group practices, integrated delivery networks, and wholesalers.
LNTH currently sports a Zacks Rank #1 (Strong Buy) with its EPS estimate revisions on the rise. Lantheus Holdings earnings are expected to climb an outstanding 628% to $3.57 a share in 2022, based on Zacks estimates. Fiscal 2023 calls for another 13% earnings growth. Top line growth is expected as well, with sales set to jump 111% this year and another 11% in FY23 to $1 billion.
Year to date, LNTH is up a very impressive +190%, crushing the S&P 500, which is down -18%. Also, in comparison LNTH’s Medical Products Markets sub industry is down -42% YTD. Even better, over the last five years LNTH has climbed a staggering +380% to crush the benchmark and its Zacks Sub Industry.
Image Source: Zacks Investment Research
The Medical-Products Industry is currently in the bottom 28% of over 250 Zacks Industries, but LNTH has clearly shown itself to be an industry leader. LNTH currently trades around $83 a share after recently reaching 52-week highs. At current levels, LNTH has a forward P/E of 24.1X vs. the industry average of 21.4X. Considering its growth prospects it is important to note that LNTH’s forward P/E is lower than the 112.7X its saw earlier in the year and its median of 30.7X. This may be reason to believe that LNTH could be poised to reach higher highs, particularly as estimates continue to go up.
The average Zacks price target of $103, offers 20% upside from current levels.
ModivCare ((MODV - Free Report) )
ModivCare is a technology-enabled healthcare services company that provides integrated supportive care solutions for public and private payors and their patients.
Year to date, MODV is down -27% to underperform the S&P 500. However, over the last five years MODV is up a stellar +109%, to outperform the benchmark at +62%,
ModivCare currently trades around $107 a share, nearly 43% below its 52-week highs. MODV has a forward P/E of 15.9X, which is below the industry average of 17X. Also, MODV is trading well off its decade-long highs of 46X and below its median of 19.9X.
Image Source: Zacks Investment Research
MODV currently lands a Zacks Rank #1 (Strong Buy) as it appears to be trading at a discount. Earnings are expected to be down 13% this year from the year-earlier level, based on Zacks estimates. However, FY23 earnings are projected to be up 15% to $7.89 a share. Although earnings are down this year, top line growth is projected to be up 19% and another 6% in FY23 to $2.54 billion. Importantly, analysts are steadily raising their estimates. The 2022 EPS estimate of $6.84 is up 8.7% over the last two months from $6.29. Similarly, next year’s estimate of $7.89 has increased 6.3% over the last two months.
Plus, the average Zacks price target suggests upside of 33% from current levels.
ShockWave Medical ((SWAV - Free Report) )
ShockWave Medical is focused on developing products for treatment of atherosclerotic cardiovascular disease.
SWAV is up an impressive 61% in 2022, with earnings estimates on the rise. Even more impressive, over the last five years SWAV is up an astonishing 800% to blast the benchmark.
Image Source: Zacks Investment Research
Trading around $284 a share, SWAV has a forward P/E of 113.4X. This is much higher than the industry average of 28.1X but the earnings growth for SWAV have been stellar. Also, SWAV’s forward P/E is lower than the high its saw earlier in the year of 145.9X and getting closer to the median of 100.4X.
According to Zacks estimates, SWAV earnings are expected to jump an astounding 1,088% at $2.57 a share in 2022. Fiscal 2023 earnings are expected to rise another 33%. Shockwave’s sales are projected to be up 102% this year and another 29% in FY23 to $621 million.
Shockwave’s positive estimate revisions have landed SWAV a Zacks Rank #1 (Strong Buy). SWAV has also beaten earnings expectations for five consecutive quarters.
Bottom Line
Post pandemic, Medical Sector stocks may become more common in many investors portfolios. Many Medical stocks offer great growth prospects and may even provide defensive safety.
It is certainly beneficial for investors to consider these equities as the importance of healthcare has never been greater.