Investing in Healthcare Top Stocks in 2024

The Bright Future of Healthcare Investment

Amidst an aging population, increasing demand for medical care and increasing healthcare costs, the healthcare sector is poised to witness tremendous growth over the forecast years followed by, increasing use of emerging technologies within the healthcare system to enhance patient care and diagnosis and increase efficiency.

Given the industry’s promising outlook, some of the best healthcare brands poised to benefit include AbbVie Inc . (ABBV), Boston Scientific Corporation (BSX), and CVS Healthcare Corporation (CVS) could be wise buys.

Key Drivers of Growth in the Healthcare Sector

With a growing aging population, rising health care costs and technological advances, the importance of the health sector is rapidly increasing and according to CMS statistics, national health expenditure (NHE) is health insurance will increase significantly from 2023-2032. NHE growth of 5.6% is expected to possibly exceed annual GDP growth of 4.3%.

This will increase the share of healthcare expenditure in GDP from 17.3% in 2022 to 19.7% in 2032. Moreover, the healthcare market is growing with the adoption of AI and other emerging technologies though has addressed cost reductions, improved access to care , and reduced staff shortages.

The healthcare market is poised to grow at a CAGR of 5%, reaching $10.91 billion by 2028, driven by aging population, expanding digital healthcare services, telemedicine integration and patients a they focus on more patient-centered results New US. pharmaceutical market revenue 2024 It is expected to reach $630.30 billion by the year, representing the largest global revenue.

Top Healthcare Stocks to Consider

In addition, the market for medical devices is growing due to the increasing demand for healthcare. The global medical device market is expected to reach $886.80 billion by 2032, expanding at a CAGR of 6.3%, while the U.S. the medical device market will be worth $314.96 billion by 2032, owing to strong pipeline and rising R&D investments

Given the bright prospects in the sector, particularly strong brands ABBV, BSX and CVS could be ideal additions to your portfolio for potential gains

AbbVie Inc. (ABBV): A Leader in Pharmaceuticals

ABBV discovers, develops, manufactures and markets pharmaceuticals worldwide. The company’s portfolio includes Humira, Skyrizy, Rinvoc, Imbruvica, Epkinly, Elaher and Venclexta/Venclexto.

On September 10, ABBV received Health Canada approval for its CONSTELLA® (linaclotide) as a once-daily treatment for children and adolescents aged 6 to 17 years with active bladder This makes CONSTELLA a lead treatment is the only Health Canada-approved prescription for the treatment of functional seizures in this patient population.

On September 4, ABBV announced that the Canadian Drug Administration (CDA) recommended that VRAYLAR cover conditions for treating adult depression A positive coverage proposal is expected to fill an unmet need role in addressing negative symptoms of depression in Canada.

Also on August 1, ABBV completed the acquisition of Cerevel Therapeutics (CERE), making Cerevel a subsidiary of ABBV. Cerevel is the right strategic fit that fits well with ABBV’s business. Its clinical-segment assets support ABBV’s emerging neuroscience pipeline and expand its markets in psychiatry, epilepsy and Parkinson’s disease

ABBV’s revenue rose 4.3% year-over-year to $14.46 billion in the second quarter ended June 30, 2024, with revenue from its neurosciences segment increasing 14.7% from a year earlier to $2.16 billion Adjusted net income EPS for ABBV was $4.71 billion and $2.65 billion for the quarter.

ABBV raised its 2024 full-year adjusted EPS guidance to $10.71 – $10.91 from previously $10.61 – $10.81.

The Street expects ABBV’s revenue to grow 2.4% year over year to $14.65 billion for the fourth quarter (ending December 2024). Likewise, the company’s EPS is expected to grow 5.7% annually to $2.95. Since then, the company has exceeded consensus earnings estimates in each of the four consecutive years.

Shares of ABBV have gained 11% in the past six months and 33.8% in the past year to finish the last trading session at $199.35.

ABBV’s strong prospects are reflected in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. POWR Ratings are calculated by considering 118 different factors, each weighted to its optimal level.

The stock has a B grade for growth, price, quality, consistency and sentiment. ABBV ranks #2 among 160 stocks in the medical – pharmaceutical industry.

Boston Scientific Corporation (BSX): Innovating Medical Devices

BSX designs, manufactures and sells medical devices for use in specialty interventional medicine internationally. The company operates in two segments, MedSurg; and heart disease. It provides equipment for the diagnosis and treatment of diseases of the stomach and lungs.

On Aug. 10, On the 27th, BSX received CE marking for its Structural Heart division’s latest transcatheter aortic valve replacement technology, the ACURATE Prime™ Aortic Valve System The ACURATE Prime valve system is designed with many features to enhance the clinical performance of the ACURATE neo2™ platform .

On June 18, BSX entered into a definitive agreement to acquire Silk Road Medical, Inc. . (SILK), a manufacturer of minimally invasive medical devices for carotid artery therapy, for $27.50 per share in cash, with a total value of approximately $1.26 billion

For the second quarter ended June 30, 2024, BSX’s net sales rose 14.5% year over year to $4.12 billion. Its adjusted net profit was $2.90 billion, up 11.9% from the year-ago price. The company’s adjusted net income was $913 million, or $0.62 per share, representing growth of 16.2% and 17%, respectively, from the prior year quarters

According to the company’s guidance, BSX expects net sales growth of 13% to 15%, with its adjusted EPS expected to be $0.57 – $0.59 in the 2024 quarter

Additionally, full-year company’s net sales organic growth is forecast at 13% to 14%. Its adjusted EPS was expected to be in the range of $2.38 to $2.42.

The BSX stock has surged 25.6% over the past six months and 52.2% over the past year to finish its last trading session at $83.06.

BSX’s sound principles are reflected in its POWR Ratings. The stock has a B grade for Growth, Stability and Sentiment. BSX ranks #40 in a list of 132 stocks in the Medical – Devices & Equipment industry.

CVS Health Corporation (CVS): Comprehensive Healthcare Solutions

CVS provides healthcare solutions in the United States. It operates through the Health Benefits, Wellness, Pharmaceutical and Consumer Welfare segments. The Health Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services.

On July 8, CVS’ board of directors approved a dividend of $0.66 per quarter of its common stock. The dividends were paid on August 1, 2024, and July 22, 2024 to holders of record.

On May 16, CVS Pharmacy®, the retail division of CVS, launched Well Market™, a new convenience store brand featuring snacks, beverages and accessories The Well Market line offers a blend of nutritious choices and irresistible flavors that consumers crave.

For the second quarter ended June 30, 2024, CVS’s total revenue increased 2.6% year-over-year to $91.23 billion, with adjusted operating income of $3.72 billion Adjusted currency of CVS Health was $2.31 billion per 1 share for the quarter Also $.83.

Additionally, the company had cash and cash equivalents of $12.51 billion as of June 30, 2024, compared to $8.20 billion at December 31, 2023

For full-year 2024, the board expects adjusted revenue for CVS Health to be in the range of $8.08 billion to $8.39 billion and in the range of $6.40 to $6.65 per share, according to the board’s draft guidance change means it He revised.

Analysts expect CVS’s revenue and EPS for the first quarter (ending March 2025) to grow 5.4% and 11.7% year-over-year to $93.24 billion and $1.46, respectively Furthermore, company ‘s consensus for the trailing quarter exceeded EPS estimates.

The stock increased 0.8% during the last month and closed its last trading session at $56.94.

CVS’ POWR Ratings reflect that strong sentiment. The stock has a B grade in terms of value. CVS ranks among the top 4 stocks in the Medical – Drug Stores industry.

Click here for CVS’ new POWR Ratings for Sentiment, Growth, Quality, Stability, and Growth.

 Investing in Healthcare Top Stocks in 2024 As the healthcare industry continues to thrive, it becomes crucial to identify the top stocks for investment in 2024. Through comprehensive market analysis, these healthcare companies exhibit strong growth potential and financial stability. With their commitment to innovation and advancements in medical technologies, investing in these top stocks can prove to be a lucrative opportunity for investors seeking long-term success in the healthcare sector.

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