Quite a few top-rated stocks out of the Zacks Medical sector have highlighted this week’s earnings lineup with now appearing to be an ideal time to buy. Following their favorable quarterly results this week, here are three intriguing healthcare stocks that investors will want to consider.
Exelixis – EXEL
Exelixis is an oncology-focused biotech company that is starting to check the boxes in terms of both its growth and valuation. Despite sales missing estimates, Exelixis’ Q4 earnings beat expectations, signifying a positive swing from the prior year. Moreover, with a very reasonable forward earnings multiple and a high double-digit EPS growth projection for fiscal 2024, Exelixis seems to be on a promising trajectory. The stock is up 13% in the last year and holds a 35% upside potential according to the Average Zacks Price Target of $27.22 a share.
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Encompass Health – EHC
Integrated healthcare services provider Encompass Health is attractive after surpassing its Q4 top and bottom line expectations on Wednesday. An operator of rehabilitation hospitals throughout the United States, Encompass Health saw a significant increase in both earnings and sales in the last year, with the stock climbing 20% during this period.
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McKesson – MCK
McKesson, the health care services and information technology giant, posted strong results for its fiscal third quarter on Wednesday, with earnings and sales surpassing estimates. Notably, the company raised its FY24 EPS guidance, solidifying its position as an attractive stock in the healthcare sector. McKesson’s stock has climbed 34% over the last year, yet it still trades at a reasonable 18.9X forward earnings multiple.
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Bottom Line
Strong quarterly results have continued to make Exelixis, Encompass Health, and McKesson stand out among the Zacks Medical sector. All three land a Zacks Rank #2 (Buy) and remain a few of the more promising healthcare stocks to consider at the moment.
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McKesson Corporation (MCK) : Free Stock Analysis Report
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