There have been some major demand-side developments in the healthcare industry in recent years, most notably being driven by an aging global population, growth in the mental health awareness movement, and COVID-19. As a result, healthcare companies with established research and development processes and global supply chains have become a shrewd choice for investors.
This article lists some of the best healthcare stocks to buy right now, placing a focus on each company’s specialization within the sector and discussing why the stocks could be a great pick. Read on to find out more.
The best healthcare stocks to buy in 2024
How we selected the top healthcare stocks
The largest healthcare companies have a combined market cap of $1.5 trillion, owing to the important role that they play in the production and development of new drugs and technologies that can combat people’s ailments.
For those seeking to gain exposure to the healthcare industry, here are some of the main things to consider when deciding which healthcare stocks to add to an investment portfolio:
- Product diversification
- Research & Development
- Global operations
Ranking the best healthcare companies for investors in 2024
This section will cover each of the top 12 healthcare stocks to buy, and why they represent a good pick in 2024.
1. Johnson & Johnson (JNJ)
Johnson & Johnson (JNJ) is a well-established multinational corporation with a strong presence in the healthcare sector. The company is known for its consumer products that span healthcare and cosmetics, and it has built a strong reputation as a trusted brand as a result.
Additionally, Johnson & Johnson is a leader in pharmaceutical innovation and invests heavily in the research and development of new drugs. JNJ stock provides good dividends, which could help to boost investment returns by providing consistent income to shareholders on a quarterly basis.
Key highlights:
- Pharmaceutical innovation
- Consumer brands
- Pays dividends to shareholders
2. Pfizer Inc. (PFE)
Pfizer Inc. (PFE) pierced public consciousness by developing a globally promoted vaccine for COVID-19, owing to the company’s advanced pharmaceutical research and development processes. A key benefit of buying PFE stock is that the company provides good dividends to shareholders on a quarterly basis.
Key highlights:
- Vast pharmaceutical portfolio
- Government-backed COVID vaccine
- Pays dividends to shareholders
3. Merck & Co., Inc. (MRK)
Merck & Co., Inc. (MRK) is known for its contributions to medical science and breakthrough therapies, placing a focus on immuno-oncology at the core of its research and development practices. It has a very good reputation in terms of medical ethics, and has an extensive portfolio of widely-used vaccines for illnesses such as measles, mumps, and rubella.
Key highlights:
- Significant vaccines portfolio
- Focuses on cancer treatment
- Strong corporate reputation for ethical practices
4. Abbott Laboratories (ABT)
Abbott Laboratories (ABT) is a diversified healthcare company with a range of products and services. The company operates in diagnostics, medical devices, nutrition, and established pharmaceuticals, and is particularly well known for its development of breakthrough diagnostics technologies.
Key highlights:
- Diverse operations
- Innovation in diagnostics
- Medical device portfolio
5. Gilead Sciences, Inc. (GILD)
Gilead Sciences, Inc. (GILD) is a biopharmaceutical company known for its focus on developing and commercializing innovative therapies, particularly in the areas of antiviral drugs and liver diseases. Gilead gained attention during the COVID-19 pandemic for its antiviral drug remdesivir, which received Emergency Use Authorization (EUA) for the treatment of the virus.
Key highlights:
- HIV and antiviral leadership
- R&D pipeline, provided a leading treatment for COVID
- Significant oncology portfolio
6. Amgen Inc. (AMGN)
Amgen Inc. (AMGN) is renowned for its innovative work in biotechnology, particularly in the development of biologic drugs. Biologics are often used to treat complex diseases, and Amgen’s industry-leading research and development in the field have given it tremendous value within the global healthcare industry.
Key highlights:
- Leader in biotechnology
- Global presence
- Aims to improve the accessibility of its medical treatments
7. Biogen Inc. (BIIB)
Biogen Inc. (BIIB) is a biotechnology company known for its focus on developing therapies for neurological and neurodegenerative diseases. Due to the aging population in western markets, Biogen could represent a shrewd investment over the coming decades as neurodegenerative diseases are particularly common in older demographics.
Key highlights:
- Neurology focus
- Offers more affordable alternatives to biologic drugs
- Strong R&D track record
8. Thermo Fisher Scientific Inc. (TMO)
Thermo Fisher Scientific Inc. (TMO) is a leading life sciences company known for its broad range of products and services in the fields of scientific research, healthcare, and diagnostics. The company provided diagnostic tests, laboratory equipment, and other critical supplies to support COVID-19 testing and research, which led to price appreciation for TMO stock.
Key highlights:
- Comprehensive product portfolio
- Technological R&D
- Provided important diagnostics services for COVID-19
9. UnitedHealth Group Incorporated (UNH)
UnitedHealth Group Incorporated (UNH) is a diversified healthcare company and one of the largest health insurers in the United States. The U.S. healthcare industry operates differently to many other first-world countries, in that healthcare is not supplied as a public good but rather it’s a fully private industry in which insurance plays an important role for affordability. As a result, UnitedHealth looks set to remain an important player in the sector and could be a great investment.
Key highlights:
- Diversified health services
- Technological R&D
- Healthy financial performance
10. Medtronic plc (MDT)
Medtronic plc (MDT) is a global medical technology company that supplies a broad portfolio of medical devices to hospitals and other healthcare centers. Its technological research and development makes the company stand out from other options on this list, as Medtronic has positioned itself within an important industry vertical as a well trusted brand.
Key highlights:
- Significant portfolio of medical devices
- Technological R&D
- Patient access and affordability initiatives
11. AbbVie Inc (ABBV)
AbbVie Inc (ABBV) is a pharmaceutical company known for its focus on research and development in various therapeutic areas. The company’s flagship product, Humira, is one of the most popular treatments for rheumatoid arthritis (RA) and has become a best-seller as a result. Additionally, ABBV stocks are known to provide consistently good dividends to shareholders.
Key highlights:
- Significant oncology portfolio
- Flagship product is one of the best-selling drugs globally
- Pays dividends to shareholders
12. Bristol Myers Squibb Company (BMY)
Bristol Myers Squibb Company (BMY) is a global pharmaceutical company with a focus on developing and commercializing innovative medicines. The company is a leader in oncology and has a healthy financial performance, and also invests in schemes to improve patient access and affordability for medical treatments around the world.
Key highlights:
- Pharmaceutical R&D
- Patient access and affordability iniatives
- Healthy financial performance
The bottom line: Which healthcare stock is the best buy right now?
As a growing global industry that is in perpetual demand, healthcare stocks can be some of the most secure ways to protect and grow capital over the long term. To recap, investors seeking to gain exposure may want to check out the following stocks:
- Johnson & Johnson (JNJ)
- Pfizer Inc. (PFE)
- Merck & Co., Inc. (MRK)
Each of the top three represent strong picks, but there are many great options out there. From consumer products, to medical devices and technologies, to the research and development of new medicines, the most influential healthcare companies provide important services for people all over the world, and therefore represent a strong addition to any investment portfolio.
Source: https://coincodex.com/article/36838/best-healthcare-stocks/