5 best healthcare stocks to buy for Q4 2024
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Here our experts choose their favourite healthcare stocks for you to invest in. From the old-hand businesses that have been around for many years to the cool new kids on the block, this list contains the best stocks in the healthcare sector.
What are the top healthcare stocks to buy?
Copy link to sectionThe table below displays our healthcare stock picks. You can find their most up to date market price by following the links, or keep reading to learn more about why each one was chosen in more detail.
| # | Stock ticker | Company name | Trade now |
|---|---|---|---|
| 1 | VEEV | Veeva Systems | |
| 2 | JNJ | Johnson & Johnson | Trade JNJ 77% of retail CFD accounts lose money. |
| 3 | ISRG | Intuitive Surgical | Trade ISRG 77% of retail CFD accounts lose money. |
| 4 | CLOV | Clover Health Investments | |
| 5 | MNMD | Mind Medicine |
1. Veeva Systems (NYSE: VEEV)
Copy link to sectionVeeva is an American company that specialises in software for the healthcare industry. It helps healthcare companies track clinical trials, manage customer relationships, and generally be more efficient and provide a better service to their patients.
There are few other businesses that offer anything similar. With that first-mover advantage, Veeva has become a popular stock over the last couple of years. Its share price grew 150% in the year following the March 2020 COVID 19 crash as it kept adding more big name clients to its roster of subscribers.
Veeva is top of our list of the best health care stocks because of its growth prospects thanks to both its unique offering and its subscription-based revenue stream. Not only does it keep adding new clients, it keeps the existing ones and regularly upsells them onto a bigger package. It has high profit margins and already counts the likes of Pfizer and AstraZeneca as clients, which bodes extremely well for the future.
2. Johnson & Johnson (NYSE: JNJ)
Copy link to sectionOn the other end of the scale, Johnson & Johnson is one of the grand old names of American health care services. Founded in 1886, it’s one of the biggest companies in the US and one of the most valuable healthcare stocks in the world.
J&J suits an investor who prefers long term reliability over a more risky growth profile. It has paid a dividend every year for half a century and is well established as the leader in American healthcare services. It makes money from selling medicine, developing new drugs, and by designing medical devices.
That has helped it steadily increase its share price over many decades and there’s no reason to expect any faltering in performance. Even during difficult economic times, people still get sick and Johnson & Johnson has proven its ability to keep increasing its dividend regardless of the global situation securing its place as one of the best individual health care stocks.
3. Intuitive Surgical (NASDAQ: ISRG)
Copy link to sectionIntuitive Surgical is a US healthcare stock that has helped to pioneer robotic surgery. It creates robotics systems known as the Da Vinci surgical system that automatically performs surgical procedures.
It has been one of the most popular health care stocks on the market since the coronavirus crash in March 2020. Technology stocks did well throughout the pandemic and as more people started to have surgery again as the worst of the crisis passed on, Intuitive’s stock took off, doubling in value over the course of the following year.
Along with the success of its technology so far, a big reason for its place on this list is the number of procedures that are possible with its Da Vinci system. There are more than six million surgeries every year that its robotics could be used for, which could be a major source of revenue in the not too distant future.
4. Clover Health Investments (NASDAQ: CLOV)
Copy link to sectionClover Health is another US-based healthcare technology company. It uses data analysis to help patients and physicians develop personalised plans for health insurance. It’s mainly targeted at older people and hopes to improve decision making and treatments.
Clover has only been a public company since the start of 2021 so there is limited stock performance to go on so far. What there has been is volatility, not least because the company is one of the healthcare stocks that came to the attention of retail traders on Reddit, leading to a 150% rise in value in the summer.
It’s on this list because of the potential of using technology to create a more efficient healthcare system. Health insurance is also a big money business in the United States and Clover has more than 100,000 patients under contract already.
5. Mind Medicine (NASDAQ: MNMD)
Copy link to sectionAs its name suggests, Mind Medicine is one of the many healthcare providers that focuses on mental health. Based in the United States, it is developing psychedelic and therapeutic treatments to address issues like anxiety and depression.
Mind Meidicne is another young company in stock market terms, having only been available to trade since 2020. It has yet to really take off, not least because its treatments are controversial – psychedelic treatments are not even legal in many countries – and it has lost a lot of money so far.
However, that’s quite normal for a modern biopharmaceutical company . It’s more risky than the other companies on this list but it has a lot of potential if the treatments were to prove to work. The flag bearer for this form of healthcare company is Moderna, which returned losses for many years until its revolutionary new technology started producing results.
Where to buy the best healthcare shares
Copy link to sectionThe platforms below are the best places to buy healthcare stocks now. You can head to the website using the links in the table or read our reviews to learn more about each one.
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What is a healthcare stock?
Copy link to sectionAny company involved in developing, buying, or selling medical products. This includes pharmaceutical companies developing drugs, biotech firms focused on innovative therapies for diseases, medical device companies, providers of healthcare services and facilities, and health insurers. Investing in healthcare stocks offers exposure to a defensive sector supported by demand for medical care, drugs, technologies, and insurance.
Top healthcare stocks tend to be leaders in their niches with solid brands, pipelines of new products, and growth prospects as populations age and healthcare spending rise globally. However, healthcare is also a complex industry facing extensive regulations, competitive threats, pricing pressures, and patent expirations.
A thorough analysis of companies’ financials, target markets, competitive advantages, and technological advances can identify promising healthcare stocks poised to benefit from secular growth trends.
Are healthcare shares a good investment?
Copy link to sectionHealthcare stocks can make excellent long-term investments for your portfolio, providing stability and growth opportunities. The healthcare sector benefits from resilient demand for medical services, drugs, technologies, and insurance. As populations grow and age globally, health care spending is projected to rise steadily. This creates tailwinds for pharmaceutical companies with new drugs, innovative biotech firms targeting diseases like cancer or rare genetic disorders, makers of essential medical devices, and health insurers providing coverage.
However, there are risks to be considered in this regulated sector facing pricing pressures. Companies must continuously develop promising new therapies and technologies while navigating competitive threats from generics and biosimilars. Unexpected clinical trial failures can devastate biotech stocks. Government scrutiny over drug pricing and changes to health insurance rules also pose risks.
Investors should assess companies’ growth prospects, competitive moats, financial strength, dividends, and value relative to peers. Diversification through ETFs can help smooth volatility. While not without risks, the top healthcare stocks with strong fundamentals are poised to deliver solid risk-adjusted returns over time by riding demographic and technological tailwinds.
More of the best performing stocks
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