Are These The Best Health Care Stocks To Buy Right Now?
Health care stocks are one of the most significant sectors in the stock market right now, if not the most. Coupled with the devastation caused by the pandemic, the focus on health care is magnified even further. These include companies that sell medical supplies, offer medical services, or even provide real estate for medical organizations. These could range from vaccine companies like Moderna Inc (NASDAQ: MRNA) or even gene therapy companies Celcuity Inc (NASDAQ: CELC) which could bring significant changes to the world.
Take Moderna for example, one of the pioneers in the production of COVID-19 vaccines. This has brought enormous gains to the company since the start of the pandemic. As a result, the company’s share price has tripled in value over the past year. Furthermore, the company recently highlighted the publication of antibody persistence data out of 6 months following the second dose of the Moderna COVID-19 vaccine.
To date, COVID-19 has taken around 3 million lives globally. However, there are other diseases that continue to plague humanity, some of which go under the radar at times. Other health care companies are working on treatments for a variety of diseases, and investors are well aware of this. With that said, let us look at these four top health care stocks in the stock market today.
Health Care Stocks To Buy [Or Sell] Right Now
- Beam Therapeutics Inc (NASDAQ: BEAM)
- Editas Medicine Inc (NASDAQ: EDIT)
- Intuitive Surgical, Inc (NASDAQ: ISRG)
- Veeva Systems Inc (NYSE: VEEV)
Beam Therapeutics Inc
First off, we have Beam Therapeutics. It is a biotech company that focuses on precision genetic medicines based on its base editing technology. Base editors enable precise rewriting of a single letter of a gene. This could potentially create lifelong cures for serious diseases. For example, its most advanced preclinical candidate, BEAM-101, targets the treatment of rare blood diseases beta-thalassemia and sickle cell disease. As some of you may be aware, the company does not have any programs in clinical testing, yet. The aforementioned candidate hopes to obtain U.S. Food and Drug Administration (FDA) approval later this year for early-stage clinical testing. With such exciting technology, could Beam potentially have the next big breakthrough in genetic medicine?
Despite lacking any programs in clinical testing, the company’s share price has risen by more than 300% over the past year. In February, Beam acquired GuideTx, a developer of nonviral drug delivery vehicles for genetic medicines. GuideTx’s technology would potentially enable much faster screening times by screening hundreds of nanoparticles in a single experiment.
As of December 31, 2020, the company had a cash position of $299.7 million. This was further bolstered in January 2021 when the company raised gross proceeds of $260 million from a private placement. Beam’s strong cash position would likely be sufficient to fund the company’s clinical development in the next few years. In March 2021, Beam appointed Amy Simon, M.D., as chief medical officer. Dr. Simon brought more than 20 years of clinical experience to Beam. With all these developments, would you consider buying BEAM stock?
Editas Medicine Inc
Next up, we have Editas Medicine. It is a leading genome editing company that focuses on translating the potential of CRISPR gene editing to develop a robust pipeline of medicines. Currently, the company is focusing on three major therapeutic areas: ocular diseases, oncology, and blood diseases.
The stock has risen by almost 50% year-over-year. Also, earlier this year, EDIT stock reached an all-time high of $99.95. However, the stock has declined more than 60% since then. That could be due to skepticism around the initial results from the company’s experimental CRISPR gene-editing product EDIT-101. Some may know that this is the first-ever administration of an in vivo gene editing medicine in humans. Considering the novelty of the product, it is not surprising that some observers are not keen on it.
Financially, the company saw its revenues quadrupled for the fiscal year December 31, 2021. Also, its net loss decreased 13% to $116 million. In February 2021, Editas announced the appointment of James C. Mullen as CEO. His wealth of experience in the industry, including experience as CEO of biotech giant Biogen (NASDAQ: BIIB), could bode well for Editas. Considering all these, would you be willing to take a chance on EDIT stock?
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Intuitive Surgical, Inc
Intuitive Surgical is a company that develops, manufactures, and markets robotic products designed to improve the clinical outcomes of patients. This is achieved through minimally invasive surgery, most notably with the da Vinci Surgical and Ion System. This would make surgeries more effective, less invasive, and easier on surgeons and patients alike.
The company’s share has risen by more than 50% over the past year. The positive sentiment around the company’s stock could be a result of its dominance in the robotic-assisted surgical space. In detail, at the end of 2020, the company had installed almost 6,000 of its surgical systems worldwide. Furthermore, it’s noteworthy that none of its competitors are close to achieving what Intuitive Surgical has achieved thus far.
Despite the impact of the pandemic, Intuitive Surgical was able to eke out gains in its Q4 2020 results. Fourth-quarter 2020 revenue was $1.33 billion, an increase of 4% year-over-year. Meanwhile, net income for the quarter was $365 million, an increase of 2% from a year ago. It’s worth pointing out that the company actually shipped out fewer systems during the quarter. Nevertheless, growth in da Vinci procedure volume more than made up for it. The potential for robotic-assisted surgical devices remains huge, and Intuitive Surgical is on the leading edge of that innovative wave. With that in mind, would you be investing in ISRG stock?
Veeva Systems Inc
Last on the list, we have Veeva Systems. The company provides cloud solutions for the global life sciences industry. Its solution enables companies to realize the benefits of modern cloud-based architecture and mobile applications for their business functions. In short, it helps companies to bring products to the market faster and more efficiently. As a result, the company’s stock price has been up nearly 50% in the past year.
In a world where tech and healthcare are trending, the company’s performance does not come as a surprise. On April 15, the company and leading clinical research organization Parexel announced a strategic collaboration. This collaboration involves Parexel standardizing Veeva’s suite of clinical operations applications to streamline operations. Besides, Parexel will have early access and provide input into Veeva’s clinical products.
“Together, we can accelerate how our customers bring new vaccines, diagnostics, devices, and therapies to patients in need.” said Peter Gassner, founder, and CEO of Veeva. In a world where tech is playing a bigger role in health care, this presents a great opportunity for Veeva. With the long growth runway ahead, would you consider adding VEEV stock into your portfolio?