The United States health industry, despite being the largest and having the best infrastructure in the world. It stood totally exposed and flawed once the pandemic struck the country. Thankfully, some new emerging trends have now managed to reshape the country’s future health trajectory. Let us look at Top 10 – US healthcare stocks to buy in 2024.
As technology merges more and more with traditional care-giving. Consumer preferences have shifted dramatically towards telehealth. As it enables them to access expert medical advice using digital platforms from a comfortable and private space. Another noticeable trend is the rapid rise of biotech startups which work on artificial intelligence (AI) to analyze various diseases in order to diagnose next-gen treatments.
Top 10 – US Healthcare Stocks to Buy in 2024
While the global healthcare sector returned approximately 20% in 2021; since 1 in every 5 Americans are expected to retire by 2030. Healthcare stocks are expected to show even more robust growth with the need for expansion of the country’s medical services.
After lagging behind the market in 2021; healthcare stocks have outperformed in 2024 as investors now view them as an excellent defensive ploy in an environment of economic uncertainty and rising interest rates.
These Top 10 US healthcare stocks to buy have been selected from a database that signals the popularity of each stock in the overall health market. In order to provide a clear picture to the readers for their investment choices with regards to value, fast growth and momentum.
Johnson and Johnson (J&J)
Founded in 1886, J&J has over 130,000 employees and operates in 60 countries. While people associate the company more with baby powder, researchers in J&J have been able to develop one of the three authorized Covid-19 vaccines, and the only single shot option available today.
The financial health and growth prospects demonstrate its potential to outperform the market and puts J&J shares among leading stocks to buy straight away.
Although half of Pfizer’s revenue comes from the United States alone, this pharmaceutical giant has footprints in more than 50 countries worldwide. While the company’s top selling medicines are household names; like the antidepressant drug Zoloft, the erectile dysfunction pill Viagra. PFE has made a mark in developing Covid-19 vaccines as well against the new omicron viarant.
Pfizer Inc (PFE)
A must-invest stock right away in 2024 as PFE makes a safe investment. As it continues to generate revenue from prior medicines and does not owe its success to Covid alone.
Eli Lilly and Co (LLY)
One of the first products LLY made way back in 1876 was quinine, the best antidote to tackle the dreaded malaria disease. This pharmaceutical firm based in Indiana, was the brainchild of a Civil War veteran, Colonel Eli Lilly. Today it has over 34,000 workers on its payroll in 18 countries and retails its products in more than 120 countries.
Teladoc Health Inc (TDOC)
Teladoc Health Inc is a multinational virtual healthcare and telemedicine company. It provides telehealth treatment solutions and expert medical advice, guidance and support and program services.
Since 2015 when Teladoc acquired BetterHelp – one of the top rated online therapy sites in the U.S. An estimated 500% increase in mental health visits was seen on its B2B channel. This makes it a favorable long-term investment at current price levels.
Vertex Pharmaceuticals (VRTX)
It is one of top biotech stocks in the US market today as this pharmaceutical company is focusing on drugs. To treat a rare genetic disease, cystic fibrosis(CF), that is known to harm the lungs and other vital body organs.
Apart from the new drug Trikafta developed for treating CF; which accounts for 84% of the company’s overall revenue. Vertex Pharmaceuticals is targeting some common diseases as well, like type1 diabetes. With plenty of other catalysts in the pipeline, Vertex seems to be a smart pick among healthcare stocks.
UnitedHealth Group (UNH)
Stability, company size and attractive dividend has made UnitedHealth Group a most sought after payer stocks on the market today. Being the largest health insurer in the world, the company hopes to expand its healthcare market by the acquisition of home health service provider LHC group.
While the charts show a modest downward trend; UnitedHealth Group has become an attractive entry point for investors looking to invest in a good healthcare stock to buy for 2024. Beyond as its cash flows continue to grow year after year.
McKesson Corp (MCK)
One of the strongest healthcare stocks in the market, MCK is more or less flat while other major indices are virtually plummeting. This gives an indication to investors about the good health of the company. MCK happens to be the largest distributor of pharmaceuticals and medical surgical appliances in the US. It is poised to deliver double digit growth going forward in the remainder of 2024.
This is a result of the resumption of visits to primary healthcare centers which have contributed to a phenomenal rise in prescriptions. There is plenty of up-side for long-term investors to consider; especially as the company’s stock price has remained stable in the current weak market.
HCA Healthcare (HCA)
Though a little underrated healthcare company; HCA has managed to emerge from the pandemic much more efficiently than its counterparts. This is the sole reason one should scoop up some shares right now.
Since HCA is the biggest hospital company in the United States; it occupies a massive market share in some of the larger states like Florida and Texas. HCA has attempted to improve its cost structure over the last few years; which should provide good payoffs in the long term by way of improved margins
Baxter International (BAX)
Baxter International is the manufacturer of healthcare products like tissue sealing devices and infusion pumps for supply to nursing homes, hospitals and doctor clinics. The products are assembled in more than 20 countries and marketed worldwide to another 100 countries.
Since the acquisition of Hillrom in December 2021, it has contributed to a large extent to the company’s Q1 results of 2024. Additionally, Baxter’s Medication Delivery segment sells intravenous solutions and administrative sets making it the third largest sales contributor behind Hill Rom and Renal Care.
Danaher (DHR)
While, like other US healthcare stocks which are substantially showing a downward trend in 2024. Danaher too is down but still its entire business continues to perform at the highest levels.
The company has posted strong Q1 results; which is an indication of recovery from the pandemic tailwinds and the strong demand created by its Covid-19 testing solutions. Since Danaher’s acquisition of Aldevron in 2021; the company has shown over 40% growth in revenue in Q1 2024, a clear example of good performance.
Conclusion
We analyze the top 10 US healthcare stocks to buy in 2024 as recommended by Wall Street professionals. You can also invest in best large-cap mutual funds which have major holding in healthcare sector. When interest rates rise and the economy is unsteady, healthcare businesses are ideal defensive investments. With pharmaceutical and biotech stocks trading at record valuation discounts to other conservative sectors, healthcare pricing are especially alluring.
