Are These The Best Health Care Stocks To Buy In January?
Health care stocks have been an investor’s favorite in recent years. These stocks have put on a stellar performance in the stock market. You could say that health care stocks were one of the few industries that have weathered through 2020 relatively well. This is especially when compared with other sectors like retail and travel that were hit very hard by the pandemic last year. The reason could be that health care is an essential service that is required even in times of great economic uncertainty.
Today, many health care companies are upping their game and you can thank them for the medical marvels that we have today. From the newest cancer-fighting drugs from Bristol Myers Squibb (BMY Stock Report) to the latest in therapeutics from companies like Intellia Therapeutics (NTLA Stock Report), we are witnessing medical innovation after innovation. In fact, the many types of treatments we have today would not even have crossed the minds of the best doctors from half a century ago. Ultimately, this has led us, humans, to live longer and healthier lives. For reference, the average world life expectancy has increased by over 15 years since the 1970s.
Will These Health Care Stocks Be Worth Buying This Month?
Some of these health care stocks still have a lot of growth potential. For instance, Helius Medical (HSDT Stock Report) has shot up by over 60% in the last 24 hours. As the pandemic is still surging all over the U.S., coronavirus related illnesses will follow suit. Demand for health care would still be at an all-time high. With that in mind, here is a list of the best health care stocks to buy in the stock market today.
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Best Health Care Stocks To Buy Right Now.
Best Health Care Stocks To Buy [Or Sell] This Month #1: Moderna
Moderna (NASDAQ: MRNA) is a health care company that has been at the center of attention in the last year. Being at the forefront of the coronavirus vaccine race, Moderna has received emergency use authorization for its vaccine by the U.S. Food and Drug Administration (FDA) last month. Today, it received conditional market approval from the European Medicines Agency (EMA) and will be the second vaccine to be greenlit by European regulators. The company’s shares have seen a 500% rise in the last year despite a selloff last month.
The company has successfully introduced a vaccine to the market within a year. Normally a vaccine would take about 10 years to develop and Moderna was swift to design and manufacture one for use before the new year. The company is now focussing on increasing its vaccine production capabilities. In a vaccine supply update on January 4, the company said that it is continuing to invest and add staff to build up to potentially 1 billion doses for 2021.
This year would no doubt let Moderna see huge gains in revenue due to the sales of its coronavirus vaccine. For instance, the U.S. will receive its 100 million doses by the end of the first quarter of 2021. This initial 100 million doses will earn Moderna over $1.5 billion. The company also expects to deliver another 200 million doses by the end of the second quarter. With such exciting developments surrounding Moderna, would you consider having MRNA stock in your portfolio?
Best Health Care Stocks To Buy [Or Sell] This Month #2: UnitedHealth Group
UnitedHealth (NYSE: UNH) is a health care company that offers health care coverage and benefits services through UnitedHealthcare (CHNG Stock Report). It also has information and technology-enabled health services through Optum. Today, the company announced that it will be acquiring software and data analytics firm Change Healthcare for $7.84 billion. It will also pay more than $5 billion in debt owed by Change Healthcare, totaling to about $13 billion.
The deal will combine Change Healthcare with UnitedHealth’s OptumInsight unit to offer software, data analytics, technology, and other services to the health care industry. The acquisition is one of UnitedHealth’s largest and is another step in expanding the company’s health services business. UnitedHealth’s combined capabilities with Change Healthcare will more effectively connect and simplify core clinical and payment processes. This in turn would bring better health outcomes and experiences for everyone, at a lower cost.
“This opportunity is about advancing connectivity and accelerating innovations and efficiencies essential to a simpler, more intelligent, and adaptive health system. We share with Optum a common mission and values and importantly, a sense of urgency to provide our customers and those they serve with the more robust capacities this union makes possible,” said Neil de Crescenzo, President, and CEO of Change Healthcare. This acquisition will no doubt help clinicians make the most informed and clinically advanced patient care decisions, further enhancing UnitedHealth’s services. With that in mind, will you consider buying UNH stock?
Best Health Care Stocks To Buy [Or Sell] This Month #3: Teladoc Health Inc
Teladoc (NYSE: TDOC) is a multinational telemedicine and virtual health care company based in New York. The company’s primary services include telehealth, medical opinions, AI and analytics, and licensable platform services. The company’s share price has more than doubled in the last year. Teladoc was one of the biggest winners in 2020 as many people flocked to telehealth services.
In the company’s latest quarter financials in October, Teladoc posted revenue of $288 million which was a 109% growth year-over-year. Teladoc also experienced a total visit increase of 206% to 2.8 million patients. In the company’s fourth-quarter guidance, it expects total revenue of $294 million to $304 million and total visits to be between 2.8 million and 3 million. These are certainly impressive figures that the company plans to achieve. With the spike of coronavirus cases, telehealth services will continue to be in high demand.
The company acquired Livongo Health in October last year for $18.5 billion. Livongo provides digital tools for helping people with diabetes and other chronic conditions to improve their health. Roughly half of all American adults could use help monitoring and managing at least one chronic condition. With such a wide market available, Teladoc will no doubt utilize the technology that Livongo provides. This plays well for the company as there is no viable competitor for the type of chronic-care Teladoc Health can provide today. All things considered, will you have TDOC stock on your list of health care stocks to buy?