BIIB, ABC, and DXCM were top for value, growth, and momentum, respectively
Top Health Care Stocks for 2020
Health care, among the greatest and most complex businesses, is comprised of a broad assortment of companies that sell medical services and products. The health care industry includes companies that sell drugs, medical devices, and insurance, in addition to hospitals and health care providers. A number of the largest health care companies in the world include Johnson & Johnson (JNJ), Pfizer Inc. (PFE), and Merck & Co.. Inc. (MRK).
Health care stocks, according to the Health Care Select Sector SPDR ETF (XLV), have outperformed the broader market, providing investors with an entire return of 17.0% when compared with S&P 500's total return of 9.0% over the past 12 months.1 Several of these companies have obtained U.S. Emergency Use Authorization to develop either tests or treatments for COVID-19, aggressively boosting their share cost. The figures in the tables within this story and the market performance numbers are as of July 27.
Here are the top 3 healthcare stocks with the fastest earnings growth, the best value, and the momentum.
If you want too see - Purchasing Private Health Insurance
Greatest Value Health Care Stocks
These are the health care stocks with the cheapest 12-month monitoring price-to-earnings (P/E) ratio. A low P/E ratio shows you're paying for every dollar of profit because profits can be returned to investors in the form of buybacks and dividends.
|Best Value Health Care Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|Biogen Inc. (BIIB)||272.33||43.1||8.0|
|Alexion Pharmaceuticals Inc. (ALXN)||101.49||22.4||9.6|
|Bio-Rad Laboratories Inc. (BIO)||515.75||15.3||9.9|
- Biogen Inc.: Biogen focuses on the discovery, development, and commercialization of pharmaceutical treatments, with a strong focus on the fields of neurology, immunology, and oncology. In Q2 2020, Biogen posted annual revenue of $3.7 billion, a 2% increase year-over-year (YOY). The main driver of this earnings increase was the license of manufacturing-related intellectual property to a of Biogen's corporate partners.2
- Alexion Pharmaceuticals Inc.: Alexion is a biopharmaceutical company that investigates and develops medication treatments for autoimmune and cardiovascular disorders.
- Bio-Rad Laboratories Inc.: Bio-Rad is a manufacturer of life science research products and analytical instrumentation. These tools are utilized to separate and analyze chemical and biological materials. In May, Bio-Rad received emergency use authorization from the U.S. Food and Drug Administration for its SARS-CoV-2 Droplet Digital PCR (ddPCR) test kit. Bio-Rad claims the evaluation can play"an increasingly important role in surveillance by detecting minimal residual disease in people recovering from COVID-19. "3
Fastest Growing Health Care Stocks
These are the healthcare stocks with the highest YOY earnings per share (EPS) expansion for the most recent quarter. Growing earnings demonstrate the business of a company is growing and is currently creating more money it can reinvest or return to shareholders.
|Fastest Growing Health Care Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|AmerisourceBergen Corp. (ABC)||103.76||21.1||3,470|
|Align Technology Inc. (ALGN)||298.14||23.5||2,060|
|Teleflex Inc. (TFX)||387.66||18.0||219.5|
- AmerisourceBergen Corp.: AmerisourceBergen provides generic pharmaceuticals, over-the-counter healthcare products, home health care supplies and equipment, and related services to health care providers.
- Align Technology Inc.: Align Technology designs and produces the Invisalign system, which is a way of treating the misalignment of teeth. In July, the business announced the launch of its first customized consulting service for electronic practice transformation. Align says that participating practices can raise overall case profit by an average 15% over 6 weeks of implementing the new service.4
- Teleflex Inc.: Teleflex supplies medical tech products to hospitals and health care providers for therapeutic and diagnostic procedures in critical care and surgical programs. On July 21, Teleflex announced positive data regarding its UroLift treatment program for patients who have enlarged prostates.5
Health Care Stocks Having the Most Momentum
|Healthcare Stocks with the Most Momentum|
|Cost ($)||Market Cap ($B)||12-Month Trailing Total Return (percent )|
|DexCom Inc. (DXCM)||421.75||39.8||175.7|
|West Pharmaceutical Services Inc. (WST)||262.66||19.3||115.5|
|Regeneron Pharmaceuticals Inc. (REGN)||608.94||62.5||94.2|
|Health Care Select Sector SPDR ETF (XLV)||N/A||N/A||17.0|
- DexCom Inc.: DexCom is a medical device company that concentrates on the design and development of continuous glucose monitoring systems for people with diabetes.
- West Pharmaceutical Services Inc.: West Pharmaceutical Services designs and manufactures packaging elements, drug delivery systems, contract laboratory services and related products designed to deliver new drug therapies to the general public.
- Regeneron Pharmaceuticals Inc.: Regeneron Pharmaceuticals is a biopharmaceutical firm that discovers, develops, and markets treatments for a variety of serious health ailments. Regeneron announced on July 6 that it had started late-stage clinical trials assessing REGN-COV2, its investigational double antibody cocktail for the prevention and treatment of COVID-19