European shares fall as healthcare stocks hit by drug reforms

Waltham, Mass.-based Thermo Fisher Scientific Inc. manufactures scientific equipment, instruments and software used in medical research and development as well as reagents and consumables. Merck traces its history back to 1668, making it the oldest company on our list. The company’s predecessor firm was founded by the Merck family in Germany, and the modern incarnation of Merck was actually started as an American affiliate of the German enterprise in 1891. Currently, Novo employs more than 45,000 people and sells its wares in over 160 countries. It has also been named one of the best companies to work for for over a decade and in 2012 was named the most sustainable company in the world by Canadian media company Corporate Knights. Shares of Swiss banking software company Temenos AG (TEMN.S) jumped 13.4% after it reported first-quarter earnings above consensus.

• Still, of the 75 healthcare companies reviewed by Morningstar equity analysts, 32 are currently undervalued.
• The overall demand for healthcare products and services is likely to remain steady and to even increase as populations age.
• Its global operations provide health and dental benefits, as well as hospital and clinical services in South America.

At the same time, rapidly developing technologies also provide opportunities for both short- and long-term growth potential in the industry. Investing in healthcare stocks can provide excellent returns, but many factors can affect stock prices. Certain downsides to health care stocks may impinge on their ability to deliver returns to investors.

What to look for in healthcare stocks

LIFE ETF is available in hedged, unhedged and USD classes, as well as mutual fund versions. As with anything else, it’s important to evaluate a wide variety of stock fundamentals before you invest. However, in general, it’s possible to bank on health care companies because they typically provide returns in a wide variety of markets.

CVS’ diversified portfolio of services across healthcare and steady income streams make it a great addition to any portfolio. Retirement investors can buy healthcare stocks in tax-advantaged retirement plans, like individual retirement accounts (IRAs). But if you have a 401(k), you’ll likely instead have to look into mutual funds that focus on the healthcare industry, rather than individual stocks. In addition to being one of the best healthcare stocks, AbbVie is also one of the best dividend stocks to own.

Syneos Health

Still, of the 75 healthcare companies reviewed by Morningstar equity analysts, 32 are currently undervalued. AMN Healthcare Services (AMN, $90.01) is one of the world’s largest medical staffing providers, including temporary or permanent positions and traveling nurses. The company faces a positive outlook in the long term as a shortage of nurses and other healthcare professionals and staff continues amid an aging population that requires more medical care. The best healthcare stocks should be on the radar of any investor who is looking to hedge their holdings in today’s volatile markets.

Earnings from operations were $7.1 billion, a growth of 19% since last year. Do certain sectors seem about as appetizing as eating a soggy Slim Jim? The last thing you want to do is sink your money into a sector that has no upward mobility.

Motley Fool Investing Philosophy

Companies that make drugs and medical devices must convince health insurers and government agencies to continue buying their products. If these players fail to grant reimbursement approvals, their growth prospects can dim. Maravai was a stand-out performer during the COVID-19 pandemic due to its model. https://investmentsanalysis.info/ But despite a return-to-normal world, Maravai has continuously outperformed. It has beaten analysts’ expectations for four of the last five quarters. Even as the healthcare stock showcases persistent demand for its products and services, Maravai trades at a price-earnings ratio of just 8.33.

Learn more about dividend stocks, including information about important dividend dates, the advantages of dividend stocks, dividend yield, and much more in our financial education center. Choose the number of shares you want to purchase and hit the «buy» button. Choose the right investments that meet your specific goals and investment timeline.

Advantages of Investing in Healthcare Stocks

If investing in a single stock seems like too much risk is being placed on a single bet, there are ETF options that give exposure to a diverse basket of healthcare stocks. Veeva Systems provides software as a service for major healthcare companies. Its lineup of customers includes multibillion-dollar behemoths such as Bristol Myers Squibb, health care stocks Eli Lilly and Moderna. Veeva has carved out a niche as an enterprise solution for healthcare providers to manage their data and workflows. Its subscription strategy has also made its products very sticky once companies sign up, contributing to extremely high net margins of around 72% compared to 57% for the industry overall.

• However, the company has a strong pipeline of drugs in development such as Skyrizi for inflammation, Rinvoq for Crohn’s disease and Imbruvica for cancer.
• Changes will soon be implemented for Medicare that will allow the program to negotiate prices with drugmakers.
• Some health care ETFs, such as the Health Care SPDR Select Sector Fund, are sector-wide ETFs that include companies from all of the industries discussed above.
• Dividends can boost the overall return you receive from owning a stock.
• Our research team runs the industry’s toughest health care dividend screening test and only picks from the top 5%.