4 Top Health Care Stocks To Watch This Week
The current pandemic has, no doubt, placed a glaring spotlight on the healthcare industry over the past year. Likewise, investors have been and continue to watch the top healthcare stocks closely. I can imagine that a global health crisis would not only emphasize the importance of healthcare but also incentivize constant innovations. Whether it is digital healthcare or advancements in biotech, investors still stand to make huge gains nonetheless.
For example, we only need to look at the likes of Chinese telemedicine giant, 111 Inc. (NASDAQ: YI). YI stock is currently looking at gains of over 170% year-to-date. In terms of biotech companies, you could turn to vaccine companies like Novavax (NASDAQ: NVAX). Even before receiving approval for its vaccine, the company has more than doubled in share price year-to-date. All this is great, but how will the industry fair after the pandemic might you ask?
For one thing, healthcare stocks will likely continue to grow once we’ve overcome the pandemic. Whatever way you look at it, healthcare will likely remain essential regardless of the state of the world. With all that in mind, could one of the best health care stocks to watch that could be worth adding to your portfolio?
Best Healthcare Stocks To Buy [Or Sell] This Week
- American Well Corporation (NYSE: AMWL)
- Moderna Inc. (NASDAQ: MRNA)
- 10x Genomics Inc. (NASDAQ: TXG)
- Teladoc Health Inc. (NYSE: TDOC)
American Well Corporation
To kick things off, we will be looking at American Well, or as most know it by, AmWell. The company operates via its proprietary telehealth platform. Given the importance of digital healthcare at this point, AmWell would be a company to watch amidst these times. However, AMWL stock has been mostly trading sideways since its initial public offering back in September. Given that AmWell will report its earnings after today’s closing bell, could it be a good time to buy AMWL stock?
Analysts at Piper Sandler (NYSE: PIPR) seem to think so. Earlier this week, the brokerage firm boosted its price target for AMWL stock to $45.00. On top of that, it also holds AMWL at an “overweight” rating. Rosy analyst updates aside, AmWell also revealed a new expansion to its core platform just last week. In brief, the company’s platform now includes “Smart TV Carepoint services” in the form of Hospital TV 100. This feature serves to further expand integrated telehealth connectivity throughout healthcare systems.
Simply put, this enables hospitals to turn their existing televisions into telehealth endpoints. Admittedly, it is a strategic play by AmWell. This is because it provides a simple yet highly scalable solution to hospitals feeling the strain from the current pandemic. Would you say this makes AMWL stock worth investing in now?
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Another top healthcare company in focus now would be vaccine frontrunner, Moderna. Of course, one of the earliest vaccine companies to receive FDA approval would be making headlines. Likewise, MRNA stock is looking at gains of over 680% over the past year. But if we take a closer look, it is admittedly down by 14% this week on account of Pfizer’s (NYSE: PFE) latest vaccine updates. Yes, new research indicates that Pfizer’s vaccine could be stored in less extreme environments. It also suggests that it is highly effective after the first dose. But, investors may have jumped the gun as Moderna’s vaccine never required ultra-cold storage and also exhibits the same effectiveness in single doses. Could this week’s seemingly hasty pullbacks be a good reason to invest in MRNA stock now?
Well, after overcoming the massive hurdle of getting its vaccine approved, Moderna’s main concern now is marketing its vaccine. To this end, it does not seem to be slowing down at all. Yesterday, the company testified to Congress that it remains on track to deliver 300 million vaccine doses by July. Moving forward, Moderna President Stephen Hoge also mentioned that over 40 million monthly doses will be sent out by April. Should this be the case, Moderna would be putting out vaccines at twice its current rate.
Not to mention, the company also received an additional order for 150 million vaccine doses from the European Commission. As Moderna continues to play a critical role in fighting the pandemic, could MRNA stock be worth investing in now?
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10x Genomics Inc.
Following that, we have a California-based biotech company, 10x Genomics. To summarize, the company designs and manufactures gene sequencing technology. The likes of which help with scientific research into how to better treat diseases in the long run. If anything, the current pandemic would greatly incentivize further investments into long-term solutions and preventative measures regarding illnesses. As you can imagine investors looking towards long-term gains, might already have TXG stock on their watchlists. Having skyrocketed by over 230% since the March 2020 selloffs, TXG stock continues to make waves on account of 10x’s latest collaboration.
In short, news broke yesterday that 10x’s sequencing technology is being used by fellow genetic sequencing company, Psomagen Inc. By and large, Psomagen is expanding its sequencing capabilities to include end-to-end single-cell sequencing (SCS) services. Thanks to 10x, Psomagen can now employ SCS to research mechanisms of infection and immune response at the level of an individual cell. According to Psomagen, this would provide a better understanding of diseases like COVID-19, cancer, and Alzheimer’s to name a few.
With 10x’s technology powering this expansion, it goes to show how paramount the company’s work is towards the healthcare industry as a whole. This, in turn, could lead to wider adoption of its tech which would bode well for 10x moving forward. Given all of this, would you consider TXG stock a buy?
Teladoc Health Inc.
When talking about digital health today, Teladoc is a name that often comes to mind. This comes as no surprise seeing that the company’s plethora of telehealth services remain a vital service during the pandemic. More importantly, after more than doubling in value over the past year, TDOC stock has dipped 12% this week. It seems to me this could be, in part, due to investors turning their attention towards epicenter stocks. Given the deceleration of COVID-19 infection rates and the incoming stimulus package, this move does make sense. This does raise the question as to whether Teladoc can perform in a post-pandemic world.
Well, according to market research, the answer could be a yes. The common belief now would be that demand for telehealth services would decline as the pandemic ends. But, Global Market Insights estimates that the industry could become a $175 billion market over the next 6 years. This would put it at a compound annual growth rate of about 19.5%. Generally, the reasoning behind this is simple. Digital consultations cost less for healthcare providers and provide another level of convenience for patients.
Even now, Teladoc continues to make a name for itself by providing free 24/7 telehealth services to Oklahoma and Texas residents impacted by winter storms. Should the company play its cards right, I could see it continue to grow in the years to come. Do you think this bodes well for TDOC stock moving forward?