Reputable analysts have recently praised healthcare firms for holding up well in the recent market storm. Walter Todd, chief investment officer at Greenwood Capital, believes that the healthcare sector, in today’s market, represents one of the “last opportunities to play defense at a reasonable price.”
The S&P 500, the Nasdaq, and the NYSE recently posted losses of 15%, 23%, and 11.45% of their value in 2022, respectively. In contrast, the major Healthcare ETFs have taken much smaller falls, indicating that the sector has genuinely weathered the stock market storm(s). The global market for digital health technology was valued at $174 billion last year and should increase at a CAGR (Compound Annual Growth Rate) of 17.1% to reach $385 billion in 2028. The Information Technology arena has been noteworthy as well. According to analysts, this industry had a value of $96.3 billion in 2019 and is expected to grow over the following two years at a CAGR of 16.4% and can reach $239 billion by 2025.
Now, join me as I break down three of my current favorites from the sector – successful, growth-poised healthcare tickers that economists recommend to be smart portfolio picks:
Abbott Laboratories (ABT)
Abbott Laboratories (ABT) develops, manufactures, and sells health care products worldwide. ABT provides generic pharmaceuticals for treating pancreatitis, irritable bowel syndrome, and other gastrointestinal disorders. ABT also offers a variety of lab systems in the areas of clinical chemistry, hematology, and transfusion. ABT provides pediatric and adult nutritional products. ABT‘s Medical Devices segment offers rhythm management, vascular and structural heart devices for the treatment of cardiovascular diseases, diabetes care products, as well as the management of chronic pain and movement disorders. ABT was founded in 1888 and is based in North Chicago, Illinois.
ABT has been commended for its resilience during the baby formula crisis, as the company handled the situation within two months without impacting its stock price. ABT also boasts one of the largest inventories of virus diagnostic tools, strengthening its ability to profit should the virus reappear. ABT has bested analysts’ earnings forecasts for the last four quarters, most recently beating EPS by 25.29% and revenue by 8.24%. ABT currently has a dividend yield of 1.71%, with a quarterly payout of 47 cents per share. The consensus price target for ABT from the analysts providing yearly price estimates is 126.00, with a high of 150.00 and a low of 95.00. The median forecast is a 14.83% rise over the most recent price, and the consensus among analysts also gives ABT a confident buy rating.
Merck & Co Inc (MRK)
Merck & Co Inc (MRK) offers a variety of health solutions, including prescriptions, vaccines, consumer care products, and animal health. MRK’s pharmaceuticals and vaccinations for human health are a feature, of course. For the prevention, treatment, and management of disease in livestock and companion animals, MRK’s Animal Health business develops, produces, and distributes healthcare products for our furry friends as well. MRK was established in 1891, and it is headquartered in Kenilworth, New Jersey.
With eight medications in development and plans to broaden the scope of its existing medicines to target other disorders, Merck & Co (MRK) is looking to the future. MRK’s yield has had a CAGR of 8.8% over the last five years and has been steadily growing for more than ten. MRK also has the distinction of consistently beating earnings projections, and on its latest earnings call, it beat EPS by 9.57% and revenue by 5.31%. MRK shows healthy growth in crucial areas year-over-year, which is only forecasted to continue. MRK currently has a dividend yield of 3.18%, with a quarterly payout of 69 cents per share. MRK has a median price target of 100.00, with a high of 110.00 and a low of 85.00 among the analysts providing 12-month price projections. The median forecast is a 15.15% increase from current pricing, and MRK’s robust buy rating is difficult to ignore.
Thermo Fisher Scientific Inc (TMO)
Thermo Fisher Scientific Inc (TMO) provides lab goods, analytical tools, specialized diagnostics, and life sciences solutions globally. TMO offers equipment and supplies for conducting biological and medical research and making medicines and vaccines. TMO offers equipment, software, and services. TMO‘s areas of expertise include ready-to-use diagnostic kits, calibrators, controls, and calibration fluids. The Laboratory division of TMO offers cryopreservation storage tanks and ultralow-temperature freezers. TMO does business via a direct sales force, online sales, and independent distributors. TMO is headquartered in Waltham, Massachusetts, and was established in 1956.
One of the most reliable investments in this space is Thermo Fisher Scientific Inc (TMO), primarily given that 89% of its shares are held by institutions, shielding its stock from volatile market fluctuations. TMO’s track record is yet another that speaks for itself. In the past four consecutive quarters, TMO has surpassed the experts’ earnings predictions by considerable margins, to the point where it might as well be a certainty. For Q2 2022, TMO beat EPS by 10.61% and revenue by 10.27%. Q1 2022 saw EPS forecasts crushed by a margin of 17.21% and revenue by 11.26%. TMO shows year-over-year revenue growth of 18.3%. TMO presently has a dividend yield of 0.20%, with a quarterly payout of 30 cents per share. The median price goal for TMO from the analysts that provide annual price projections is 678.00, with a high of 715.00 and a low of 525.00. The consensus estimate is a 14.92% gain from its most recent price, and TMO’s buy rating is the real deal.
Read Next: Is this “America’s Nightmare Winter”?
Have you seen this?
Bill Bonner is one of the most successful businessmen in America over the past 50 years…
And he recently retreated to one of his three European properties (on 64 acres, overlooking one of the world’s most beautiful rivers)…
To issue a serious warning for all Americans (click here to see it).
In short, Bonner says we are in for “a very strange period of time in America over the next few years.”
It’s a scenario unlike anything you’ve probably seen before… something he calls: “America’s Nightmare Winter.”
I recommend you pay attention for one simple reason: Bonner has a knack for making really big and accurate macro-economic forecasts…
In fact, he has made three similar predictions in his 50+ year career… and each one proved to be exactly right, although he was mocked each and every time.
I expect this one will be no different.
Most will pay no attention. Even fewer will take the basic steps he recommends.
But for a small group, I think this information could be life-changing.
Personally, I’ve now taken three of his four recommended Steps. (You can see all four recommendations here.)
We’ve posted the entire warning and analysis, filmed from one of his European properties on the Blackwater River, on our website.
You can view it for free right here…
Sincerely,
Mike Palmer
Founding Partner, Stansberry Research
P.S. Bonner says this is all happening because two extremely powerful and unstoppable trends, which seem unrelated on the surface, are now headed towards each other, “like freight trains on the same track.”
That’s why this anti-social 73-year-old is going public to issue what he calls his “Fourth and Final Prediction.”
Don’t miss this chance to hear from one of the most humble and successful men in America over the past 50 years, explain how America is likely to look very different over the next few years, and how it will affect you and your money. Click here to watch free of charge
