Top 10 health care stocks for the long term

In this article, we will take a look at the top 10 healthcare stocks for the long term. You can skip this part and go to Top 5 healthcare stocks for the long term.

The healthcare sector is one of those rare evergreen areas of the industry that refuses to waver even when the entire market is shaking. According to a Credit Suisse report, the healthcare industry remained strong in 2022 despite the global economic downturn. As of November 28, 2022, the industry’s year-to-date return in 2022 was -6.2%, the report said, “significantly outperforming” the broader equity markets.

The report stated that there are several factors that make the health care sector immune from the global macroeconomic situation. The problem of an aging population is one of the main growth drivers in the industry. An aging population is driving growth in pharmaceuticals, healthcare services, and related equipment, and this space is not affected by inflation or price hikes like other parts of the market.

According to McKinsey, health care earnings pools are expected to grow at a compound annual growth rate of 4% from 2021 through 2026. The company said inflation and higher interest rates caused it to lower its preliminary estimate of that growth. While McKinsey believes the industry will face challenges in 2023, it said the healthcare space will see a rebound in 2024. Some areas of the healthcare industry are expected to experience rapid growth, according to McKinsey. These include healthcare service providers, software platforms for patient engagement and clinical decision support and specialty pharmacy within pharmacy services.

The healthcare sector will continue to inject billions into its long-term growth pipelines in high-growth streams such as infectious diseases, cancer, virology, and neurological diseases. These investments continue to make the healthcare and biotechnology sectors attractive areas for investors as they can expect a long-term return on their investment.

Healthcare stocks have not had a strong start in 2023, amid growing fears of a resurgence of the coronavirus. Non-essential healthcare companies are losing demand for their products and services during lockdowns as patients postpone or cancel non-emergency appointments. However, the outlook for the sector remains strong over the long term. That’s why in this article our focus will be on long-term healthcare and biotech stocks to invest in.

Photo by National Cancer Institute on Unsplash

Our methodology

In this article, we used the Finviz stock screener and selected healthcare stocks that have PE ratios (on a TTM basis) of less than 20, sales growth of more than 25% qoq and EPS growth of more than 25% qoq – qoq. . This high growth, low polyethylene stock has some long-term growth catalysts that could drive its stock price higher in the future. We have discussed these growth drivers and provided a brief overview of the products of these companies. PE ratios (TTM) were obtained from Yahoo Finance.

Top 10 health care stocks for the long term

10. Valneva SE (NASDAQ:Fallen)

Polyethylene percentage (TTM): 8.38

Number of hedge fund holders: 1

Valneva SE (NASDAQ:VALN) is a French biotech company that has some growth catalysts in the short term. In December, Valneva SE (NASDAQ:VALN) rose after the company said it completed an application with the Food and Drug Administration for a single-shot chikungunya vaccine for people 18 and older. Valneva SE (NASDAQ:VALN) said this vaccine is supported by a Phase III study.

Benjamin A. Smith’s Laurion Capital Management owns a $251,000 stake in Valneva SE (NASDAQ:VALN) as of the end of the September quarter.

9. Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA)

PE ratio (TTM): 6.73

Number of hedge fund holders: 13

Shares of Bermuda-based Kiniksa Pharmaceuticals Limited (NASDAQ:KNSA) have gained about 27% over the past year. Kiniksa Pharmaceuticals, Ltd. (NASDAQ: KNSA) is affiliated with ARCALYST. Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA) awarded a $5 million advance to acquire this drug from Regeneron (REGN) in 2017. The treatment treats regeneron-related periodic syndromes. Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA) has several other powerful growth catalysts that could drive its stock price higher in the coming months and years.

In September 2022, Kiniksa Pharmaceuticals, Ltd. (NASDAQ: KNSA) has an agreement with Roche to develop marketing rights for Kiniksa Pharmaceuticals, Ltd. (NASDAQ: KNSA), an all-human monoclonal antibody targeting the drug oncostatin. M beta receptors

As of the end of the third quarter, 13 hedge funds tracked by Insider Monkey had stakes in Kiniksa Pharmaceuticals, Ltd. (NASDAQ: KNSA). The total value of these bets was $140 million. The largest shareholder of Kiniksa Pharmaceuticals, Ltd. (NASDAQ: KNSA) Lei Zhang’s Hillhouse Capital Management holding $37.5 million Kiniksa Pharmaceuticals, Ltd. (NASDAQ: KNSA).

8. Vir Biotechnology, Inc. (NASDAQ:Ver)

PE ratio (TTM): 2.97

Number of hedge fund holders: 18

Vir Biotechnology, Inc. (NASDAQ: VIR) in the field of infectious diseases. In November, Vir Biotechnology, Inc. (NASDAQ: VIR) reported strong third-quarter results, driven by its partnership with GSK. Vir Biotechnology, Inc.’s revenue increased. (NASDAQ: VIR) in the quarter more than doubled in the period. Revenue for the period came in at $374.6 million, an overwhelming estimate of $260.32 million. Vir Biotechnology, Inc. (NASDAQ: VIR) rose 6.7% to $23.27 after hours.

Vir Biotechnology, Inc. (NASDAQ: VIR) manufactures products to treat Covid-19, hepatitis B, influenza, and many other viral diseases. It could be a solid choice in the long run since Vir Biotechnology, Inc. (NASDAQ: VIR) has several growth catalysts. As of the end of the third quarter, 18 hedge funds tracked by Insider Monkey reported stakes in Vir Biotechnology, Inc. (NASDAQ: VIR), compared to 13 funds in the prior quarter.

7. DocGo Inc. (NASDAQ:DCGO)

PE ratio (TTM): 14,95,000

Number of hedge fund holders: 19

DocGo Inc. (NASDAQ: DCGO) in the lucrative market for telehealth services. According to Grand View Research, the global telehealth market was estimated to be valued at approximately $83.5 billion in 2022 and this figure is expected to increase to $101.2 billion by 2023. Amid an aging population and people’s changing preferences, the demand for care services is expected to increase telehealth. DocGo Inc. (NASDAQ: DCGO) telehealth services and platform fully integrated with some of the largest electronic medical records [EMR] systems in the country. DocGo Inc. (NASDAQ: DCGO) also uses artificial intelligence to predict any emergencies and uses the technology to find solutions to problems such as traffic congestion on roads and potential delays in getting to patients in emergency situations.

As of the end of the third quarter, 19 hedge funds tracked by Insider Monkey reported stakes in DocGo Inc. (NASDAQ: DCGO). The total value of these bets was $71.5 million.

6. Immatics NV (NASDAQ:imtx)

Polyethylene percentage (TTM): 15.52

Number of hedge fund holders: 25

Immatics NV (NASDAQ:IMTX) uses a T-cell receptor [TCR]Technology based on finding cures for cancer. Immatics NV (NASDAQ:IMTX) Therapeutics targets solid tumors. Immatics Remedies NV (NASDAQ:IMTX) is expected to take a significant amount of time to reach final approvals. There are also risks involved, but the long-term returns of Immatics NV (NASDAQ:IMTX) could be beneficial for those who can wait. In October 2022, Immatics NV (NASDAQ:IMTX) jumped after the company published interim data for its solid tumor candidate IMA203. The results demonstrated the potential of TCR-engineered cell therapy as a multitumor target in a phase I trial.

As of the end of the third quarter of 2022, 25 hedge funds in Insider Monkey’s database of 920 funds had stakes in Immatics NV (NASDAQ:IMTX). The total value of these bets was $172 million. The largest shareholder in Immatics NV (NASDAQ:IMTX) was Julian Baker and Baker Bros. Advisors Felix Baker, with a stake of more than $44 million.

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Disclosure: None. Top 10 healthcare stocks for the long term Originally posted on Insider Monkey.

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