Are These The Best Health Care Stocks To Buy This Week? 4 In Focus.
Health care stocks have been on a tear in the stock market. For starters, it houses the booming biotech sector. This part of the health care industry has been in the limelight with coronavirus vaccine developers leading the charge. Take Novavax (NASDAQ: NVAX) for example. The company’s vaccine saw 89% efficacy in its trials in the U.K. Thus, it is not surprising that the stock is currently looking at mind-blowing gains of over 4,000% in the past year. Aside from that, you have the growing telemedicine industry which caters perfectly to the needs of those looking for health advice while maintaining social distancing. A prime example, in this case, would be Teladoc (NYSE: TDOC) who has surged by over 150% in the past year. With figures like this, it is no wonder that investors have their eyes glued to the top health care stocks in the stock market today.
Looking at the bigger picture, the industry could still have plenty of room to grow. This is because everybody eventually needs health care, one way or another. As a matter of fact, IHS Markit (NYSE: INFO) also sees growth for the sector this year. By its current estimates, global health care spending could grow to $8.8 trillion in 2021. After reading all of this, you might be interested in the sector yourself. Well, if that is the case, here are the best health care stocks to watch this upcoming week.
Top Health Care Stocks To Watch
- Johnson & Johnson (NYSE: JNJ)
- Moderna Inc. (NASDAQ: MRNA)
- Regeneron Pharmaceuticals Inc. (NASDAQ: REGN)
- Cardinal Health Inc. (NYSE: CAH)
Johnson & Johnson
First up, we have multinational medical device company Johnson & Johnson, or JNJ. The New-Jersey based health care veteran develops medical devices, pharmaceuticals, and consumer packaged goods. To point out, JNJ is also a contender in the coronavirus vaccine race. The company is in the limelight today on account of its latest update on its vaccine.
After yesterday’s closing bell, the company revealed that it has submitted an emergency use authorization (EUA) application for its coronavirus vaccine. This was done via its biotech subsidiary, Janssen Biotech. Additionally, JNJ reported that its investigational single-dose vaccine is prepped for shipment immediately following authorization. Now, a key advantage of JNJ’s vaccine is that it reduces the severity of COVID-19 symptoms. By extension, it would help to reduce the number of patients in hospital beds and lighten the load on overwhelmed health systems worldwide. This would make it a serious contender in the current race to vaccinate the globe. Should things go as planned, investors might have an interesting opportunity in JNJ stock.
In terms of financials, the company appears to have the figures to back up a potential vaccine rollout. This is evident from its recent quarter fiscal posted last week where the company reported a total revenue of $22 billion. With all this in mind, will you be watching JNJ stock?
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Our next health care stock is arguably one of the most well-known biotech stocks coming out of 2020. It is the company behind one of the few vaccines authorized for emergency use, Moderna. Notably, MRNA stock continues to soar towards new heights. It has skyrocketed by over 760% in the past year and closed yesterday’s trading session at a new all-time high. As with most stocks growing at this rate, investors would be wondering if it still has room to run. Well, the company is constantly providing updates on its global vaccine rollout and this week was no different.
On Wednesday, Moderna announced that it would be supplying an additional 6 million doses of its vaccine to Switzerland. In total, the country will be receiving 13.5 million doses with plans for a summer 2021 delivery. Less than an hour later, the company also announced that it had been approved by the Singapore Health Sciences Authority (HSA). The interim authorization serves as another positive development to the global credibility behind Moderna’s vaccine. As the company looks at a busy year ahead, I would expect investors to be watching MRNA stock accordingly. With Moderna slated to report its fourth-quarter fiscal on February 25, will you be adding MRNA stock to your watchlist?
Regeneron Pharmaceuticals Inc.
Another top health care company in the spotlight now would be Regeneron. It is a leading player in the biotech industry that develops medicines for people with serious diseases. The likes of which include medicines for cancer, eye diseases, pain, and inflammatory diseases to name a few. Particularly, REGN stock had one of its best years in the stock market last year. With the company reporting earnings on Friday, investors could be looking to make it another great year for REGN stock.
In its fourth-quarter fiscal, Regeneron reported total revenue of $2.42 billion which reflects a 30% increase year-over-year. Moreover, it posted earnings per share of $10.24, exceeding consensus estimates of $8.43 per share. Regeneron benefited greatly from recovering demand for its eye disease treatment, Eylea, netting sales of $1.34 billion throughout the quarter. Furthermore, it also saw a 56% year-over-year jump in global net sales of its eczema drug Dupixent. This added up to a whopping $1.17 billion in sales.
Significantly, Regeneron has approximately 30 product candidates in clinical development on its pipeline. One of them is an antibody cocktail by the name of REGEN-COV (RC). Just last week, Regeneron posted results indicating that RC is effective at reducing symptomatic COVID-19 infections. Seeing as Regeneron is firing on all cylinders, will you be adding REGN stock to your watchlist?
Cardinal Health Inc.
Topping off our list is Cardinal Health. The multinational health care service company is noted as the 14th largest company in the U.S. in terms of revenue generated. For some context, it provides integrated health care services and products for clients across the health care industry worldwide. Its offerings range from medical products and pharmaceuticals to even supply chain solutions for hospitals. Today, CAH stock is in focus as the company posted its second-quarter fiscal this past Friday.
In it, Cardinal Health posted total revenue of $41.5 billion for the quarter. The company also reported earnings of $1.74 per share, beating general estimates by over 20%. Impressively, this marks the fourth consecutive quarter where the company surpassed consensus earnings per share estimates. Even as the company continues to deal with pandemic-related impacts, its pharmaceutical segment saw a 4% increase in revenue for the quarter. All in all, this added up to a total of $37.2 billion.
CEO Mike Kaufmann summarized, “Our second-quarter results demonstrate our resilient business model, strong fundamentals, and the adaptability of our dedicated employees. We remain focused on optimizing our core businesses, investing in key areas, and efficiently deploying capital to drive long-term, sustainable growth.” Could this mean a prosperous year ahead for CAH stock? Time will tell.