The decade of the 2020s may be the decade of healthcare stocks. Over the next ten years, medical innovation is expected to increase, presenting investors with several possibilities to benefit from some of the industry’s greatest disruptors. Here are ten businesses and one ETF to keep an eye on for the rest of the year and beyond. UnitedHealth Group takes the top spot as the best healthcare company to invest in for the long term, regardless of market conditions.
- Stats: UnitedHealth Group (UNH, $416.04) published its 2020 Sustainability Report in mid-June. One of its significant commitments is to provide preventive care services to at least 85% of its 49.5 members annually, up from 78% in 2019. Presently it has a Market value of $392.6 billion and the dividend yield is 1.4%.
- Committed services: These services include routine wellness visits, cancer, and other health screenings, as well as the management of chronic conditions and vaccinations. By providing these services, UNH expects to lower the overall healthcare costs of its members, delivering better outcomes and profits as a result.
- Adjusted Earnings: The insurance giant had adjusted earnings per share (EPS) of $5.31 during the first quarter, up 42.7% from the year earlier. It generated $6.0 billion in cash flow from operations, a healthy 120% of net income. UnitedHealth Group’s net margin in the quarter was 6.9%, 170 basis points higher than a year ago, and a 350 basis-point improvement over Q4 2020.
- Revenues: UnitedHealth expects to earn on an adjusted basis between $18.10 and $18.60 per share in 2021. This guidance includes an impact from Covid-19 of approximately $1.80. In terms of technical performance, it’s one of the best healthcare stocks out there. UNH’s year-to-date (YTD) total return is 18.6%, while over the past 52 weeks, it is up 41%.
- Some other companies: Danaher, Intuitive Surgical, GlaxoSmithKline, Moderna, Vertex Pharmaceuticals are some other imminent healthcare firms that are next in the ranks. These healthcare sectors have caught investors’ attention since some of these companies have received regulatory approval for drugs to treat COVID-19 and begun distributing vaccines, and others are rushing to develop and win approval for new COVID-19 drugs.