Should Investors Be Watching These Top Health Care Stocks Right Now?
When it comes to answering the question of “which stocks to invest in now”, investors may want to consider health care stocks. With pharmaceutical giants and emerging names in biotech, there is plenty of variety in the stock market today. If anything, the health care industry is among the most vital markets in our world today. From helping us maintain and improve our quality of life to developing cures for deadly diseases, the importance of the sector can’t be overstated. Even now, as the world continues to deal with the coronavirus pandemic, things could be heating up in the health care world again.
Just this week, White House chief medical advisor Dr. Anthony Fauci highlighted the rising threat of the Delta variant of COVID-19. According to Dr. Fauci, this variant of concern could be the dominant strain in the U.S. in the next few weeks. Not to mention, the World Health Organization named it the “fastest and fittest coronavirus strain yet”. As a result, health care companies across the board stand to benefit. On one hand, Medicare providers like Clover Health (NASDAQ: CLOV) would see an uptick in customers. This could happen as more Americans place a higher priority on their day-to-day health. On the other hand, coronavirus vaccine companies such as Moderna (NASDAQ: MRNA) would also be hard at work addressing variants. On that note, take a look at these four top health care stocks making headlines in the stock market now.
Top Health Care Stocks To Watch Before July
- GlaxoSmithKline (NYSE: GSK)
- Entera Bio Ltd (NASDAQ: ENTX)
- Ocugen Inc. (NASDAQ: OCGN)
- Veeva Systems Inc. (NYSE: VEEV)
GSK is a multinational pharmaceutical company with a wide portfolio of treatments and drugs. It is a global healthcare company that has developed many life-changing drugs in the last 20 years. For instance, the company was the first to develop the malaria vaccine. It also has legacy products like Amoxicillin, an antibiotic used to treat a number of bacterial infections. Shares of GSK stock are up by over 18% since March.
On Wednesday, the company announced plans to turn its consumer health care business into a separately listed company. This will also strengthen drug development at its pharmaceutical business with an $11 billion windfall. The resulting New GSK will be a growth company that has new ambitions for patients and shareholders. It would strengthen its R&D and commercial initiatives and also transform its group structure and capital allocation. Also, GSK expects to improve adjusted operating margin from the mid-20s% in 2021 to over 30% by 2026. Profit growth will be driven by a combination of strong revenue growth from new vaccines and specialty medicines, improving operational performance, and benefits from the transformation of recent years. Given this exciting piece of news, will you consider watching GSK stock?
Entera Bio Ltd
Entera is a biotech company that develops orally delivered large molecule therapies. Its proprietary oral drug delivery technology is designed to address the technical challenges of poor absorption, high variability, and the inability to deliver large molecules to the targeted location in the body. ENTX stock currently trades at $6.03 as of 9:40 a.m. ET and is up by over 30% this week. Investors seem to be responding to news that the company recently released.
Diving in, Entera announced excellent topline Phase 2 bone mineral density (BMD) results for its lead candidate EB613 for the treatment of osteoporosis. If approved, EB613 will be the first oral bone-building product to treat osteoporosis patients. In detail, the company reported that subjects receiving the 2.5 mg dose of EB613 showed significant dose-related increases in BMD at the lumbar spine, total hip, and femoral neck at 6 months. Spiros Jamas, CEO of Entera Bio had this to say, “We are looking forward to an end of Phase 2 meeting with the FDA. More detailed results will also be presented in a future scientific conference and publications. The company will evaluate potential additional osteoporosis market opportunities specifically related to increases in hip BMD.” For this reason, is ENTX stock worth adding to your portfolio?
Ocugen is a biopharmaceutical company that develops and commercializes transformative therapies to treat rare and underserved eye diseases. The company has also made great strides in developing its coronavirus vaccine. OCGN stock has increased by over 2,000% in valuation in the last year. On June 16, 2021, the company announced that it will join the Russell 3000 Index, which measures the performance of the largest U.S. companies.
Last week, the company also announced that it has selected Jubilant HollisterStier as its manufacturing partner for its coronavirus vaccine candidate, Covaxin for commercial manufacturing in the U.S. and Canadian market. This is ahead of the company preparing to submit for regulatory approval to the FDA and Health Canada. Its vaccine candidate has shown strong results conducted to date, including an efficacy rate of 78% overall efficacy and 100% in severe coronavirus including hospitalizations. All things considered, will you watch OCGN stock?
Veeva Systems Inc.
Last but not least, we have Veeva Systems Inc. For the uninitiated, the California-based computer software company is a major name in the health care space now. This is mainly thanks to its cloud-computing services which primarily aid the pharmaceutical and life sciences industries. Through its cloud-computing services, Veeva empowers customers at every step of the regulatory process. By extension, the company helps customers accelerate the said process. Notably, Veeva serves over 1,000 health care organizations, ranging from the leading players in the field to upcoming biotech names. These include the likes of AstraZeneca (NASDAQ: AZN), bluebird bio (NASDAQ: BLUE), and Eli Lilly & Co. (NYSE: LLY), to name a few. Seeing as VEEV stock is currently up by over 17% in the past month, investors appear to be keen on the company’s growth prospects now.
Likewise, more health care companies seem to share the same sentiment now. On Tuesday, Veeva revealed that it is working with Oval Medical Technologies and inveox GmbH, two emerging Medtech companies. These new clients will be using Veeva’s Vault Quality Suite of applications to modernize their quality management. inveox CEO Dominik Sievert commented that Veeva’s services make the company “well-equipped” to accelerate the development of products while complying with industry regulations. Given the facilitating role of Veeva in the life-science industry, we could be looking at long-term demand for its services. As such, would you consider adding VEEV stock to your July watchlist?