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3 Medical Stocks to Buy as the Sector Continues to Grow
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Since late last year, the healthcare sector has seen a steady rise. As of January, an otherwise indifferent month for the broad sectors other than tech and financials, health care advanced 3%, and is up 7.1% over the past 12 months.
The sector is riding on investors' current bet on healthcare to emerge as one of the winners for 2024. As is, the regular demand for medical services is not dependent on the peaks and troughs of a market, especially one that has remained volatile with an eye on the Fed’s tight monetary policy. Also, medical spending in the country is projected to grow at an average annual rate of 5.4% for 2019-2028 and to reach $6.2 trillion by 2028.
Even as the industry faces labor shortages and recessionary pressures in the post-pandemic world plagued by a European war and trouble in the Middle East, its outlook compared to the overall economy looks encouraging.
What also aids is a widely prevalent AI optimism, which is almost certain to take the sector by storm. AI is poised to deliver medical breakthroughs owing to its ability to study far more information than is humanly possible. With far superior pattern recognition abilities and resultant assistance in drug development and by improving efficiency in data analytics to bring down patient-care costs, AI will change the way healthcare works.
Generically, it has always been lucrative for investors looking for a steady cash flow because pharmaceutical companies are known to offer regular dividends. In a nutshell, the sector may be off its pandemic period peak, but will remain resilient and continue to grow in the coming years.
Thus, we have selected three medical stocks that are likely to gain ground in the ensuing months and should be looked into now. The stocks below flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy). The search was also narrowed down with a VGM Score of A or B. Here V stands for Value, G for Growth and M for Momentum; the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners.
HCA Healthcare, Inc. (HCA - Free Report) is a healthcare company that operates general and acute care hospitals that offer medical and surgical services.
HCA’s expected earnings growth rate for the current year is 6.8%. The Zacks Consensus Estimate for its current-year earnings has improved 4.3% over the past 60 days. The company has a Zacks Rank #1 and a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
ADMA Biologics, Inc. (ADMA - Free Report) is a biopharmaceutical company that engages in the business of specialty plasma-derived biologics for treating immune deficiencies and infectious diseases in the United States and globally.
ADMA’s expected earnings growth rate for the current year is 93.9%. The Zacks Consensus Estimate for its current-year earnings has improved 33.3% over the past 60 days. The company has a Zacks Rank #2 and a VGM Score of B.
Exelixis, Inc. (EXEL - Free Report) is an oncology company focused on the development of new medicines for difficult-to-treat variants of cancer in the United States.
EXEL’s expected earnings growth rate for the current year is 64.4%. The Zacks Consensus Estimate for its current-year earnings has improved 11.3% over the past 60 days. The company has a Zacks Rank #2 and a VGM Score of A.
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3 Medical Stocks to Buy as the Sector Continues to Grow
Since late last year, the healthcare sector has seen a steady rise. As of January, an otherwise indifferent month for the broad sectors other than tech and financials, health care advanced 3%, and is up 7.1% over the past 12 months.
The sector is riding on investors' current bet on healthcare to emerge as one of the winners for 2024. As is, the regular demand for medical services is not dependent on the peaks and troughs of a market, especially one that has remained volatile with an eye on the Fed’s tight monetary policy. Also, medical spending in the country is projected to grow at an average annual rate of 5.4% for 2019-2028 and to reach $6.2 trillion by 2028.
Even as the industry faces labor shortages and recessionary pressures in the post-pandemic world plagued by a European war and trouble in the Middle East, its outlook compared to the overall economy looks encouraging.
What also aids is a widely prevalent AI optimism, which is almost certain to take the sector by storm. AI is poised to deliver medical breakthroughs owing to its ability to study far more information than is humanly possible. With far superior pattern recognition abilities and resultant assistance in drug development and by improving efficiency in data analytics to bring down patient-care costs, AI will change the way healthcare works.
Generically, it has always been lucrative for investors looking for a steady cash flow because pharmaceutical companies are known to offer regular dividends. In a nutshell, the sector may be off its pandemic period peak, but will remain resilient and continue to grow in the coming years.
Thus, we have selected three medical stocks that are likely to gain ground in the ensuing months and should be looked into now. The stocks below flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy). The search was also narrowed down with a VGM Score of A or B. Here V stands for Value, G for Growth and M for Momentum; the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners.
HCA Healthcare, Inc. (HCA - Free Report) is a healthcare company that operates general and acute care hospitals that offer medical and surgical services.
HCA’s expected earnings growth rate for the current year is 6.8%. The Zacks Consensus Estimate for its current-year earnings has improved 4.3% over the past 60 days. The company has a Zacks Rank #1 and a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
ADMA Biologics, Inc. (ADMA - Free Report) is a biopharmaceutical company that engages in the business of specialty plasma-derived biologics for treating immune deficiencies and infectious diseases in the United States and globally.
ADMA’s expected earnings growth rate for the current year is 93.9%. The Zacks Consensus Estimate for its current-year earnings has improved 33.3% over the past 60 days. The company has a Zacks Rank #2 and a VGM Score of B.
Exelixis, Inc. (EXEL - Free Report) is an oncology company focused on the development of new medicines for difficult-to-treat variants of cancer in the United States.
EXEL’s expected earnings growth rate for the current year is 64.4%. The Zacks Consensus Estimate for its current-year earnings has improved 11.3% over the past 60 days. The company has a Zacks Rank #2 and a VGM Score of A.