Corporations that create drugs, manufacture medical devices, or provide healthcare or health insurance are examples of healthcare companies that are listed on the stock market.
You would have many choices if these figures piqued your interest in healthcare stocks. Listed below are Finxpd’s picks for the top five healthcare stocks for your consideration.
List of Contents
Johnson & Johnson (JNJ)
Market Cap
$454 billion
5-Year Avg. Annualized Return
7.8%
10-Year Avg. Annualized Return
11.7%
Why We Selected It
Even though Q-tips and baby powder are the most well-known products of Johnson & Johnson, the company also produces a wide range of other items. Vaccinations developed by researchers at the business, for example, are one of three FDA-approved emergency COVID-19 vaccines, the only one now accessible. J&J was founded in 1886 and currently employs more than 130,000 people across 60 countries worldwide.
UnitedHealth Group Inc (UNH)
Market Cap
$500 billion
5-Year Avg. Annualized Return
23.7%
10-Year Avg. Annualized Return
27.2%
Why We Selected It
By market capitalization, UnitedHealth Group is the largest publicly listed health insurance firm in the United States. UnitedHealth, which owns Optum, provides a wide range of healthcare services, including health savings accounts, through a network of enterprises (HSAs).
UnitedHealth was created in 1977 and had a long history of providing monthly dividends to its investors. The company’s headquarters are in Minnesota, and its provider networks are spread across the United States.
Eli Lilly and Co (LLY)
Market Cap
$291 billion
5-Year Avg. Annualized Return
32%
10-Year Avg. Annualized Return
22.6%
Why We Selected It
Eli Lilly, a pharmaceutical company founded in Indiana, employs about 34,000 people in 18 countries and offers its medications in over 120 countries worldwide. Civil War veteran Colonel Eli Lilly set up a shop in 1876 and named it Lilly & Company. Quinine, a drug used to treat malaria, was one of the first goods it created.
Pfizer Inc (PFE)
Market Cap
$278 billion
5-Year Avg. Annualized Return
11.9%
10-Year Avg. Annualized Return
10.2%
Why We Selected It
In addition to pharmaceuticals and vaccines, Pfizer also produces a variety of consumer health care items from its New York City headquarters. As of 2020, around half of the company’s revenues will come from its operations in the United States.
Some of Pfizer’s best-selling drugs are the antidepressant Zoloft, the erectile dysfunction medicine Viagra, and the anti-anxiety drug Xanax. The business has also created one of the primary Covid-19 vaccines, which is expected to protect against the novel omicron type of the disease.
Novo Nordisk A/S (NVO)
Market Cap
$234 billion
5-Year Avg. Annualized Return
20.1%
10-Year Avg. Annualized Return
13.4%
Why We Selected It
Lars Fruergaard Jorgensen, its CEO, heads this pharmaceutical company. He is also the vice president-elect of the European Federation of Pharmaceutical Industries and Associations (EFPIA), which also participates as a member. Bagsvaerd, Denmark, is where Novo is headquartered.
Novo employs over 45,000 people and distributes its goods to customers in more than 160 nations. For more than a decade, it has been rated one of the finest places to work, and in 2012, a Canadian media outlet declared it the most sustainable corporation in the world.
Conclusion
Doing your research is essential before making any major financial decision, be it an investment in healthcare stocks or something else. However, while the aforementioned large-cap stocks may be good bets, investing in the more volatile small-cap biotech stocks may be extremely dangerous.
The truth is, though, that investing in the stock market is a gamble. Instead, consider putting your money into healthcare-focused index funds or exchange-traded funds (ETFs). These are less susceptible to the short-term fluctuations in fortune experienced by any company, yet they produce respectable annual increases in value. Therefore, they are highly recommended by financial experts.
We suggest the social trading site Awonar if you are unsure where to put your money. Awonar makes it simple to trade foreign stocks and other CFD products with only a few clicks.
FAQs
Pfizer Inc. is a worldwide pharmaceutical corporation that creates and sells novel medications and vaccines. Because of its excellent financials, deep pipeline of pharmaceuticals and vaccines, and participation in the COVID-19 pandemic response with its highly effective vaccine, it is a top healthcare company to purchase in 2022.
Healthcare stocks are an excellent investment in 2022 because to various variables such as rising demand for healthcare services, an aging population, the ongoing COVID-19 pandemic, and technological and pharmacological developments. Furthermore, the healthcare business is less volatile and recession-resistant than other industries.
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Read more: Popular Stocks
Source: Forbes