There’s a long list of reasons to look at the healthcare stock, and they’re not all related to the coronavirus vaccine, as you might assume.
Why invest in healthcare stocks? easy.
According to the Commonwealth Fund, the United States spends more on health care as a share of the economy than any other country – nearly twice as much as an OECD country. Americans use more expensive techniques such as MRI and specialized procedures (such as hip replacement) than other countries. The Commonwealth Fund also states that the United States has one of the highest rates of breast cancer screening among women ages 50 to 69 and the second highest rate of influenza vaccination among people 65 years of age or older.
When you start scanning healthcare inventory, a few common themes emerge: strong budgets and cash for mergers and acquisitions, not to mention dividends to line your pockets. Paving the way for a natural nod to the healthcare inventory includes an aging world population, and a rising demand for elective procedures, sales of drugs, medical equipment and diagnostic tests.
Sure, big tech and cryptocurrency might catch your eye, but why not invest in healthcare in 2022?
3 Healthcare Credits to Add to Your Portfolio in 2022
Healthcare stocks can add strength to your portfolio unlike any other sector you can invest in. Take advantage of the unique opportunities that healthcare can provide for a well-balanced portfolio. Take a look at our three healthcare picks to add to your portfolio in 2022.
Eli Lilly and Company (NYSE: LLY)
Eli Lilly and Company (NYSE: LLY), Headquartered in Indianapolis, Indiana, and operating on a large scale – the company has a massive operation, with more than 34,000 employees worldwide, and approximately 8,000 employees engaged in research and development, clinical research in 55 countries, and research and development (R&D) facilities and factories located In seven countries the products are marketed in 120 countries.
A wide range of treatable conditions and familiar current medications include:
- Cardiovascular treatment: ADCIRCA
- Neurodegeneration treatment: AMYViD
- Treatment of COVID-19: pamanivimab and ecefimab, baricitinib
- Diabetes treatment: Paximi, Basaglar, Glucagon Glyxambi, Humalog, Humulin, Insulin Lispro, Jardiance, Gentaduetto, Leumgif, Synjardi, Tradgenta, Triguardi, Trulicity
- Cancer: CYRAMZA, ERBITUX, ALIMTA, Gemzar, Portrazza, Retevmo, Verzenio Cancer
- Bone, muscle and joint treatment: FORTEO
- Endocrine therapy: Humatrope
- Immunology: Olumiant, Taltz
- Pain: Gravity, REYVOW
- Neurotherapy: Zyprexa Relprevv
Lilly and Company revenue increased to $6.773 billion from $5.74 billion in the third quarter of 2021. Revenue grew 11% in both the third quarter and year-to-date in 2021. Products contributed to this growth, including That’s Trulicity, Taltz, Verzenio, and Emgality.
In more exciting announcements, Lilly has presented tirzepatide in type 2 diabetes and a renewed submission of donanemab to the FDA for rapid approval in early Alzheimer’s disease.
It has also received US approvals for new indications for Verzenio and Jardiance, presenting Jardiance in the US and Europe for heart failure with preserved ejection fraction (HFpEF), and positive phase 3 readings for lebrikizumab in atopic dermatitis.
UnitedHealth Group Inc. (NYSE: UN)
UnitedHealth Group Inc. (NYSE: UN), a healthcare company, has four segments under two business platforms, Health Benefits and Health Services. The four divisions include UnitedHealthcare, OptumHealth, OptumInsight and OptumRx.
- United Provides healthcare under the following: UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement, UnitedHealthcare Community & State, and UnitedHealthcare Global.
- optics: It serves payers, caregivers, employers, governments, life sciences companies, and consumers through OptumHealth (delivery of care, management, wellness and more), OptumInsight (data, analytics, research, etc.), and OptumRx (pharmaceutical care services).
UnitedHealth’s revenue increased 11% last year, and revenue growth drove a 20% increase in operating profit and strong cash flow. UN stock has outperformed the general market by 90% compared to the S&P 500 index up 68% since 2017. Its premium generation, medical and advisory services fees, and sales of medical products and services pave the way for a high investment option in 2022.
Centene Corp. (NYSE: CNC)
In our investigations of a low-priced health care stock that is poised to rise, Centene Corporation (NYSE: CNC)Headquartered in St. Louis, Missouri, it caught our eye. As of this writing, Centene’s share price is $76.78.
A multinational healthcare organization providing programs and services to uninsured and uninsured individuals in the United States, Centene offers health plan coverage to individuals through government-supported programs and through primary care physicians, specialists, hospitals, and allied services providers. Its health service plans include the following (large) matrix:
- Primary and specialized physician care
- Hospital inpatient and outpatient care
- Emergency and Urgent Care
- prenatal care
- Laboratory and X-ray
- Primary care at home
- Vision and dental care
- Therapy and social work
- care coordination services
The company also provides over-the-counter medications, medical equipment, and behavioral health/abuse services. It also offers a line of nurse counseling and after-hours support services and services for those eligible for the Military Health System.
Centene Corp.’s financial health and growth prospects show. Its ability to outperform the market, including revenue forecasts for 2022 that have exceeded expectations. The company is evaluating strategic alternatives for its international business and forecasts 2022 revenue of $135.9 billion to $137.9 billion. The stock is up more than 25% as healthcare ETFs lag. The company reported total revenue of $32.4 billion for the third quarter of 2021, which is 11% growth over the third quarter of 2020. The company also reported diluted earnings per share of $0.99 for the third quarter of 2021, compared to $0.97. For the third quarter of 2020. .
Indulge in healthcare for the added pluses
While healthcare stocks do not dominate the market like big tech and cryptocurrency, major healthcare companies continue to strive to preserve the essentials – the quality of life for all human beings. After all, we cannot live without vaccines, cancer drugs, mental health drugs, and cardiovascular advances. If you’re thinking of healthcare stock as an afterthought for your portfolio, think again. They can be a huge boon (all those cutting edge technologies) to your wallet in the new year.