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4 Low-Beta Healthcare Stocks to Buy Amid Fears of Another Rate Hike
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Key Takeaways
ABT has a 0.59 beta and 7.2% expected earnings growth for the current year.
CORT expects more than 100% earnings growth, with estimates up 64.6% in 60 days.
PGEN and BHC have a beta of 0.92 and 0.37, respectively, with strong earnings growth expectations.
Wall Street has remained volatile over the past few months. Major indexes have hit record highs multiple times but have given up substantial gains as investors’ sentiment remains low amid ongoing tensions in the Middle East and high inflation.
The Federal Reserve hiked interest rates in its September policy meeting for the first time in three years in its bid to tame inflation. Investors now fear that another rate hike in the Federal Reserve’s next policy meeting could cripple their spending power. These factors could keep markets volatile for a longer period.
Given this situation, it would be ideal to invest in low-beta defensive stocks from the healthcare sector, namely, Abbott Laboratories (ABT - Free Report) , Corcept Therapeutics Incorporated (CORT - Free Report) , Precigen, Inc. (PGEN - Free Report) and Bausch Health Companies Inc. (BHC - Free Report) .
Fears of Another Rate Hike Grow
The Federal Reserve hiked interest rates by a quarter percentage point in its September FOMC meeting, taking its target range to 3.75% to 4%, as inflation remained elevated. It was the first hike in more than three years. Although inflation eased substantially last year, it remained above the Fed’s 2% target.
However, inflation started climbing in the second quarter as oil prices surged, making goods and services costlier, after war broke out between the United States and Iran in late February.
Tensions escalated further last month after both the United States and Iran resumed attacks following a fragile ceasefire and failed negotiations. Last week, President Donald Trump said a delegation from Iran met with U.S. officials and that the meeting went well and lasted three hours.
However, there are still no signs of negotiations between the two countries. The consumer price index (CPI) jumped 0.4% sequentially in August. The annual CPI rate came in at 3.4%. Core CPI, which strips out volatile food and energy prices, rose 0.3% sequentially in August, taking the annual rate to 2.4%.
The Federal Reserve also hinted at another rate hike by the end of this year. Investors fear that oil prices could surge further if the Middle East tensions continue for a longer period, which could see the Fed hike interest rates at its October FOMC meeting.
The Consumer Confidence index fell 6.7% to 81.9 in September, to hit its lowest level since April 2014, the Conference Board said on Tuesday. A rate hike means higher borrowing costs, which will impact the purchasing power of consumers further.
4 Low-Beta Healthcare Stocks With Upside
Abbott Laboratories
Abbott Laboratories is a diversified healthcare company based in Abbott Park, IL. ABT discovers, develops, manufactures and sells healthcare products globally. Abbott’s products are sold in more than 160 countries. The company has about 122,000 employees.
Abbott Laboratories has an expected earnings growth rate of 7.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the past 60 days. ABT has a beta of 0.59 and carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Corcept Therapeutics Incorporated
Corcept Therapeutics Incorporated is focused on the discovery, development and commercialization of drugs for the treatment of severe metabolic, psychiatric and oncology disorders, which are associated with the activity of the hormone cortisol, also known as the stress hormone.
Corcept Therapeutics has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 64.6% over the past 60 days. ABT has a beta of 0.40 and sports a Zacks Rank #1.
Precigen
Precigen, Inc. is a biopharmaceutical company. It specializes in the development of gene and cell therapies for immuno-oncology, autoimmune disorders and infectious diseases. PGEN’s transformative therapeutic platforms, including UltraCAR-T, AdenoVerse cytokine therapies, multifunctional therapeutics and off-the-shelf AdenoVerse immunotherapies, as well as ActoBio Therapeutics, Exemplar Genetics and Triple-Gene from our subsidiaries.
Precigen has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the past 60 days. PGEN has a beta of 0.92 and sports a Zacks Rank #1.
Bausch Health Companies
Bausch Health Companies Inc. is a global, diversified specialty pharmaceutical and medical device company focused on developing, manufacturing and marketing products across key therapeutic areas such as gastroenterology, hepatology, neurology and dermatology. BHC portfolio includes branded and generic drugs, branded generics, over-the-counter products and aesthetic medical devices.
Bausch Health Companies has an expected earnings growth rate of 16.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7.4% over the past 60 days. BHC has a beta of 0.37 and sports a Zacks Rank #1.
View the Zacks #1 Rank List
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4 Low-Beta Healthcare Stocks to Buy Amid Fears of Another Rate Hike
Key Takeaways
Wall Street has remained volatile over the past few months. Major indexes have hit record highs multiple times but have given up substantial gains as investors’ sentiment remains low amid ongoing tensions in the Middle East and high inflation.
The Federal Reserve hiked interest rates in its September policy meeting for the first time in three years in its bid to tame inflation. Investors now fear that another rate hike in the Federal Reserve’s next policy meeting could cripple their spending power. These factors could keep markets volatile for a longer period.
Given this situation, it would be ideal to invest in low-beta defensive stocks from the healthcare sector, namely, Abbott Laboratories (ABT - Free Report) , Corcept Therapeutics Incorporated (CORT - Free Report) , Precigen, Inc. (PGEN - Free Report) and Bausch Health Companies Inc. (BHC - Free Report) .
Fears of Another Rate Hike Grow
The Federal Reserve hiked interest rates by a quarter percentage point in its September FOMC meeting, taking its target range to 3.75% to 4%, as inflation remained elevated. It was the first hike in more than three years. Although inflation eased substantially last year, it remained above the Fed’s 2% target.
However, inflation started climbing in the second quarter as oil prices surged, making goods and services costlier, after war broke out between the United States and Iran in late February.
Tensions escalated further last month after both the United States and Iran resumed attacks following a fragile ceasefire and failed negotiations. Last week, President Donald Trump said a delegation from Iran met with U.S. officials and that the meeting went well and lasted three hours.
However, there are still no signs of negotiations between the two countries. The consumer price index (CPI) jumped 0.4% sequentially in August. The annual CPI rate came in at 3.4%. Core CPI, which strips out volatile food and energy prices, rose 0.3% sequentially in August, taking the annual rate to 2.4%.
The Federal Reserve also hinted at another rate hike by the end of this year. Investors fear that oil prices could surge further if the Middle East tensions continue for a longer period, which could see the Fed hike interest rates at its October FOMC meeting.
The Consumer Confidence index fell 6.7% to 81.9 in September, to hit its lowest level since April 2014, the Conference Board said on Tuesday. A rate hike means higher borrowing costs, which will impact the purchasing power of consumers further.
4 Low-Beta Healthcare Stocks With Upside
Abbott Laboratories
Abbott Laboratories is a diversified healthcare company based in Abbott Park, IL. ABT discovers, develops, manufactures and sells healthcare products globally. Abbott’s products are sold in more than 160 countries. The company has about 122,000 employees.
Abbott Laboratories has an expected earnings growth rate of 7.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the past 60 days. ABT has a beta of 0.59 and carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Corcept Therapeutics Incorporated
Corcept Therapeutics Incorporated is focused on the discovery, development and commercialization of drugs for the treatment of severe metabolic, psychiatric and oncology disorders, which are associated with the activity of the hormone cortisol, also known as the stress hormone.
Corcept Therapeutics has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 64.6% over the past 60 days. ABT has a beta of 0.40 and sports a Zacks Rank #1.
Precigen
Precigen, Inc. is a biopharmaceutical company. It specializes in the development of gene and cell therapies for immuno-oncology, autoimmune disorders and infectious diseases. PGEN’s transformative therapeutic platforms, including UltraCAR-T, AdenoVerse cytokine therapies, multifunctional therapeutics and off-the-shelf AdenoVerse immunotherapies, as well as ActoBio Therapeutics, Exemplar Genetics and Triple-Gene from our subsidiaries.
Precigen has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the past 60 days. PGEN has a beta of 0.92 and sports a Zacks Rank #1.
Bausch Health Companies
Bausch Health Companies Inc. is a global, diversified specialty pharmaceutical and medical device company focused on developing, manufacturing and marketing products across key therapeutic areas such as gastroenterology, hepatology, neurology and dermatology. BHC portfolio includes branded and generic drugs, branded generics, over-the-counter products and aesthetic medical devices.
Bausch Health Companies has an expected earnings growth rate of 16.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7.4% over the past 60 days. BHC has a beta of 0.37 and sports a Zacks Rank #1.