If you’re looking to enhance your portfolio with elements of diversification, safety, and growth, the healthcare sector might just be the answer you seek. This arena is rich with various opportunities spanning biotech, pharmaceuticals, medical devices, and more, each offering a unique profile. Some companies boast a history of stable earnings and dividends, while others hold the promise of future growth.
Diversifying your investment across these healthcare entities can pave the way for a well-rounded portfolio that could reap substantial rewards in the long run. Wondering where to start? Here are three healthcare stocks that present as clear-cut choices, allowing you to secure a stake in each for less than $1,000, setting the stage for potential gains over time.
Image source: Getty Images.
Pfizer: Embracing Change and Growth Opportunities
Following a buoyant phase that saw remarkable revenue influx from coronavirus-related product sales, Pfizer (NYSE: PFE) now stands at a crucial juncture marked by transition. The demand for coronavirus vaccines and treatments has waned, causing a dip in the big pharma player’s shares. Moreover, certain flagship products outside the pandemic realm are approaching patent expiry, leading to a decrease in Pfizer’s current revenue levels.
However, the current scenario presents a prime opportunity for investors. Pfizer is in the midst of its most extensive streak of product launches, introducing 19 products over 18 months. Additionally, a series of strategic acquisitions, including the notable procurement of oncology specialist Seagen, is poised to spur a new era of revenue growth.
The Seagen acquisition, in particular, stands out as a savvy move, providing Pfizer with four established products exhibiting revenue growth and a robust pipeline brimming with potential oncology treatments. This move assumes significance as the oncology drugs market is on a rapid growth trajectory, projected to double to $484 billion by 2030 according to Fortune Business Insights.
Currently trading at around 12 times forward earnings estimates, investing in Pfizer appears to be a bargain given the company’s promising long-term outlook.
CRISPR Therapeutics: Harnessing the Power of Gene Editing
CRISPR Therapeutics (NASDAQ: CRSP) recently achieved a significant milestone by securing the world’s first regulatory approval for a product based on CRISPR gene editing technology. This groundbreaking approach involves precise DNA editing at specific loci to facilitate gene repair, offering the potential for functional cures.
The company’s newly endorsed product, Casgevy, targets blood disorders such as sickle cell disease and beta-thalassemia. Given the limited treatment options available for these conditions and Casgevy’s potential as a one-time curative solution, the product is poised to attract both medical practitioners and patients alike.
Partnering with leading biotech firm Vertex Pharmaceuticals, CRISPR Therapeutics benefits from a robust commercialization setup. Given their varied experience and multiple marketed products, Vertex is well-positioned to establish Casgevy’s foothold in the market.
Beyond its current achievements, CRISPR Therapeutics showcases a robust pipeline of gene-editing candidates in immuno-oncology, autoimmune diseases, and cardiovascular ailments, promising a forthcoming period rich in pivotal developments. Seizing the opportunity now could position investors favorably to capitalize on the anticipated growth trajectory of this ascending biotech entity.
Medtronic: Pioneering Evolution in Medical Devices
Medtronic (NYSE: MDT) commands a significant presence in the medical device landscape, specializing in products related to diabetes, cardiovascular health, medical surgery, and neuroscience. Over time, the company has delivered consistent earnings growth and dividends, making it a compelling long-term investment prospect in the healthcare domain.
Similar to the aforementioned stocks, Medtronic appears to be on the brink of a transformative growth phase. As part of operational streamlining efforts in recent years, the medical device giant has intensified its focus on high-growth opportunities, maintaining a brisk pace in product innovation. Notably, the company secured approximately 130 product approvals across key markets in the past 12 months.
These initiatives reflected positively in Medtronic’s recent revenue growth and prompted an upward revision of its full-year revenue and earnings-per-share guidance. Furthermore, a concerted emphasis on the burgeoning field of artificial intelligence (AI) has led Medtronic to develop five approved AI products. These innovations aim to simplify surgical procedures and enhance patient outcomes, a mutually beneficial setup that could translate into substantial revenue upsurges for Medtronic in the future.
Trading at 16 times forward earnings estimates, Medtronic stands out as a compelling investment opportunity in the realm of medical devices, poised to offer significant upside potential in the foreseeable future.
