There is a long list of reasons to consider healthcare stocks, and not all of them are related to the coronavirus vaccine, as you might expect.
Why invest in health stocks? Easy.
According to the Commonwealth Fund, the United States spends more on health care as a percentage of the economy than any other country – almost twice the average for OECD countries. Americans use expensive technologies like MRIs and specialized procedures (like hip replacements) more than other countries. The Commonwealth Fund also says the United States has one of the highest breast cancer screening rates among women aged 50 to 69 and the second-highest flu vaccination rate among those aged 65. and more.
When you begin to analyze healthcare stocks, some common themes emerge: strong balance sheets and liquidity for M&A, not to mention dividends to line your pockets. Leading the way for a natural nod to healthcare stocks includes an aging global population, high demand for elective procedures, sales of drugs, medical equipment and diagnostic tests.
Sure, big tech and cryptocurrency might grab your attention, but why not invest in healthcare in 2022?
3 healthcare stocks to add to your portfolio in 2022
Healthcare stocks can add a robustness to your portfolio unlike any other industry you can invest in. Take advantage of the unique opportunities that healthcare can bring to a well-balanced portfolio. Take a look at our three healthcare choices to add to your portfolio in 2022.
Eli Lilly and Company (NYSE: LLY)
Eli Lilly and Company (NYSE: LLY), headquartered in Indianapolis, Indiana operates on an impressive scale – the company has a massive operation, with over 34,000 employees worldwide, approximately 8,000 employees engaged in research and development, clinical research in 55 countries, research and development (R&D) facilities and manufacturing plants located in seven countries and products marketed in 120 countries.
Its familiar and wide range of treatable conditions and common medications include the following:
- Cardiovascular treatment: ADCIRCA
- Treatment of neurodegeneration: AMYViD
- COVID-19 treatment: bamlanivimab and etesevimab, baricitinib
- Treatment of diabetes: BAQSIMI, BASAGLAR, Glucagon Glyxambi, Humalog, Humulin, Insulin Lispro, Jardiance, Jentadueto, Lyumjev, Synjardy, Tradjenta, Trijardy, Trulicity
- Cancer: CYRAMZA, ERBITUX, ALIMTA, Gemzar, Portrazza, Retevmo, Verzenio Cancer
- Treatment of bones, muscles, joints: FORTEO
- Endocrine treatment: Humatrope
- Immunology: Olumiant, Taltz
- Pain: EMGALITY, REYVOW
- Neurological treatment: Zyprexa Relprevv
Lilly and Company’s revenue reached $ 6.773 billion, up from $ 5.74 billion in the third quarter of 2021. Revenue increased 11% in the third quarter and since the start of 2021 Products contributed to this growth including Trulicity, Taltz, Verzenio and Emgality. .
In more interesting announcements, Lilly submitted tirzepatide in type 2 diabetes and an ongoing submission for donanemab to the FDA for fast-track approval in early Alzheimer’s disease.
It also received US approvals for new indications for Verzenio and Jardiance, submission of Jardiance in the US and Europe for heart failure with preserved ejection fraction (HFpEF) and positive phase 3 results for the lebrikizumab in atopic dermatitis.
UnitedHealth Group Inc. (NYSE: UNH)
UnitedHealth Group Inc. (NYSE: UNH), a healthcare company, has four segments under two business platforms, healthcare benefits and healthcare services. The four segments include UnitedHealthcare, OptumHealth, OptumInsight and OptumRx.
- UnitedHealthcare: Provides healthcare through the following businesses: UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement, UnitedHealthcare Community & State and UnitedHealthcare Global.
- Opts: Serves payers, healthcare providers, employers, governments, life science companies and consumers through OptumHealth (healthcare delivery, management, wellness and more), OptumInsight (data, analytics, research, etc. .) and OptumRx (Pharmaceutical Care Services).
UnitedHealth’s revenue grew 11% last year, and revenue growth resulted in a 20% increase in operating income and strong cash flow. UNH stock has outperformed the general market by 90% compared to the 68% rise of the S&P 500 since 2017. Its generation of bonuses, fees for medical and consulting services and the sale of medical products and services are opening the door to the market. leading to an upward investment option in 2022.
Centene Corp. (NYSE: CNC)
In our survey of low-cost healthcare stocks about to climb, Centene Corporation (NYSE: CNC), headquartered in St. Louis, Missouri, caught our attention. At the time of this writing, the Centene share price was $ 76.78.
A multinational health care company that provides programs and services to underinsured and uninsured people in the United States, Centene provides health plan coverage to individuals through government-subsidized programs and through the intermediary of its primary and specialist care physicians, its hospitals and its auxiliary providers. Its health service plans include the following (large) table:
- Primary and specialized medical care
- Inpatient and outpatient care
- Emergency and urgent care
- Prenatal care
- Laboratory and X-rays
- Primary home care
- Vision and dental care
- Therapy and social work
- Care coordination services
The company also provides over-the-counter medications, medical equipment, and behavioral / abuse health services. It also offers a nursing counseling line and after-hours support services and services to those eligible for the military health care system.
The financial health and growth prospects of Centene Corp. demonstrate its potential to outperform the market, including a 2022 revenue outlook that has exceeded expectations. The company is evaluating strategic alternatives for its international business and forecasts revenue of $ 135.9 billion to $ 137.9 billion in 2022. The stock has climbed more than 25% as healthcare ETFs are lagging behind. It reported total revenue of $ 32.4 billion for the third quarter of 2021, up 11% from the third quarter of 2020. The company also reported diluted EPS of $ 0.99 for the third quarter 2021, compared to $ 0.97 for the third quarter of 2020..
Dive Into Healthcare For Extra Benefits
While healthcare stocks don’t dominate the market like big tech and cryptocurrencies, big healthcare companies continue to strive to preserve the basics – the quality of life for all human beings. After all, we can’t live without vaccines, cancer drugs, mental health drugs, and cardiovascular progress. If you think of healthcare stocks as an afterthought in your portfolio, think again. They can be a huge boon (all of these developing technologies) to your wallet in the New Year.