Top 5 Healthcare Stocks Expected To Thrive Post Pandemic

Healthcare has become one of the world’s largest sector, both in terms of revenue and employment. It comprises of hospitals, medical devices, equipment, insurance, medicines, and vaccines. The US healthcare industry is massive, with healthcare spending accounting for over 19.7% of US GDP in 2020. As a result, the healthcare sector in US is seeing strong and sustained growth.

Since the demand for healthcare products is ever increasing, the sector provides steady and consistent returns that are uncorrelated with the overall direction of the stock market. Here are the top 5 healthcare stocks to look out for.

UnitedHealth Group Inc. (NYSE: UNH) is an American multinational healthcare and insurance company offering consumer-oriented health benefit plans as well as addressing the needs for preventive and acute healthcare services.

Key Data

Market Cap	$484.23B	P/E Ratio(TTM)	27.05
EPS (TTM)	$19.14	Dividend Yield	1.27%

As the largest health insurer in the world UnitedHealth Group is best positioned to cash in on the encouraging industry growth outlook.

This insurer posted arevenue of $80.1 billion in the first quarter of 2022, representing a growth of 14.2%. It also recorded a $5.49 in adjusted diluted EPS in the first quarter.

Over the next 5 years, UnitedHealth is expected to deliver 14.6% annual earnings growth. With the stock’s DPR at 29.4% in 2021, it has the flexibility to grow its dividend in line with its earnings.

The company’s insurance customer base grew by 3% year over year. It’simpressive total revenue growth has been due to various price hikes passed on to the customers.

The group’s annual earnings growth potential is notably higher than the industry average which makes this stock a worthy of consideration for investors.

Abbott Laboratories (NYSE: ABT) is an American Multinational and healthcare devices company. It operates in 4 segments – pharmaceutical products, diagnostic products, nutritional products, and medical devices. The company also handled the infant formula crisis in US and Covid-19 testing devices is its strongest product.

Key Data

Market Cap	$179.87B	P/E Ratio(TTM)	21.44
EPS (TTM)	$4.79	Dividend Yield	1.79%

If you are someone who deals with stocks patiently and want to invest in a safe stock, then this company’s stock will excite you to the fullest. This laboratory is fully diversified and has proven quite profitable to hold for longer periods. It has a PE Ratio of 21.44 and EPS of $4.79.

This stock is perfect for long-term investment because of a variety of reasons. The most critical factor is that the business has a long history of successfulproducts with a revenue stream of more than $43 billion.

Over the past 5 years, thecompany’s net income has risen by 307%. It is increasing its dividend pay-out every year for the last half century, hence treating its investors with utmost care.

In conclusion, if you are looking for a conservative stock that will appreciate steadily over time, Abbott would be a perfect addition to your portfolio.

Pfizer Inc (NYSE: PFE) is an American multinational pharmaceutical and biotechnology corporation. It offers medicines and vaccines in various therapeutic areas along with anti-infective medicines and oral COVID-19 treatment.

Key Data

Market Cap	$256.82B	PE Ratio (TTM)	8.9
EPS (TTM)	$5.14	Dividend Yield	3.50%

Pfizer has been able to make a fortune over the recent years due to the coronavirus outbreak. With the EPS of  $5.14 and a dividend yield of 3.50%, Pfizer has a bright future ahead.

During the second quarter 2022, the drug makers revenue rose to $27.7 billion. Due to its Covid-19 line-up, the company has recorded largest quarterly sales.

Paxlovid (coronavirus vaccine) and Comirnaty (coronavirus therapy) account for half of the Pfizer’s total revenue. Pfizer has both-a solid pipeline and plenty of funds to pour into research and development along with a strong cash flow stream.

The company has tools to launch several new potential approvals in the next 5 years. Hence, it’s the perfect time to invest in the stock while it is still at its low at $45.

Baxter International Inc (NYSE: BAX) is an American multinational healthcare company that primarily focuses on products to treat kidney disease and other chronic and acute medical conditions. It also provides connected care solutions including devices, software, and integrated technologies.

Key Data

Market Cap	$27.53B	PE Ratio (TTM)	27.33
EPS (TTM)	$2	Dividend Yield	2.04%

The current price of this Illinois based company is around $54.66. The market capitalisation of the company holds at $27.527 billion. Looking at the quarterly financials, the company reported a revenue stream of $3.75B with a year-on-year growth of 20.92%.

With the PE ratio of 27.33 and EPS of 2 there are signs of positive growth for Baxter. The company’s current price suggests an upside potential.

Baxter has collaborated with Moderna and Novavax to provide manufacturing services and supply packaging for their Covid –19 vaccines. The stock has gained 76.3% over 5 years and more than 9% over the past 3 years.

Vertex Pharmaceuticals Inc (NASDAQ: VRTX) is an American Biopharmaceutical company. It engages in developing and commercializing therapies for treating cystic fibrosis. It is also investigating cell therapies to deliver a potential functional cure for Type 1 diabetes.

Key Data

Market Cap	$71.60B	PE Ratio (TTM)	22.58
EPS (TTM)	$12.72	Dividend Yield	N/A

With such strong financials, Vertex Pharmaceuticals is a must buy. it has been generating market beating returns for years and analysts believe that one could retire as a millionaire by investing in it stocks for a longer period.

The compounded annual growth rate of Vertex is almost 13% and if the company continues to grow at this rate, it could result in a million – dollar investment.

The company has everything one might expect from growth investment, strong pipeline, and financials to support its long-term growth.

As the healthcare sector of the United States is one of the most consequential part of the economy and a fundamental part of people’s lives, this industry is seeing continuous and sustained growth over the years. Given how massive this sector is investing in it is an easy and safe avenue.