Health tech stocks – know where to put your money

Healthcare tech is no doubt the most dynamic sector in the world because people are paying more attention to health issues. Being considered a potential field, health tech stocks are attracting many investors.

The Healthcare sector is witnessing its enormous development the recent years. And since some companies are allowed to provide COVID-19 drugs and vaccines, it has definitely caught investors’ attention. Based on deep analysis, financial experts suggest the best health tech stocks to put your money on.

 

Company Price ($) Market Cap ($B) 12-month
trailing
P/E ratio
EPS Growth 

(%)

Revenue Growth 

(%)

Best Value

Healthcare

Stocks

Agios 

Pharmaceuticals

Inc. (AGIO)

57.11 3.5 2.5
Bio-Rad 

Laboratories Inc.

(BIO)

594.74 17.7 4.4
Quidel Corp.

(QDEL)

115.98 4.9 5.3
Fastest Growing Healthcare Stocks PerkinElmer

Inc. (PKI)

144.77 16.2 1,020 100.4
PPD Inc. 

(PPD)

46.12 16.2 2,000 28.5
Boston Scientific Corp. (BSX) 42.11 59.8 2,200 8.2

 

The table above includes statistics as of May 21. They are the best health tech stocks when it comes to the best value and the fastest growth. Although there are different criteria to decide which stock is the best value and which has the fastest growth, we make it in one table for a clearer comparison.

Best value healthcare stocks

While it comes to best value stocks, many people misunderstand that they are those with the highest price. However, a more common statistic used by financial analysts is the 12-month trailing price-to-earnings (P/E) ratio. Profits can be returned to shareholders in form of dividends and buybacks. A low P/E is what all companies try to achieve because the lower it is, the fewer companies have to pay for each dollar profit generated.

Agios Pharmaceuticals Inc.

Agios is a pharmaceutical company that offers solutions to cancer metabolism. The company focuses on metabolic treatments of some types of cancer and some rare genetic diseases.

Bio-Rad Laboratories Inc.

Bio-Rad is a company focusing on life science research products and analytical instrumentation. With the mission of providing useful, high-quality products and services that advance scientific discovery and improve healthcare, the company is developing tools to separate and analyze complex chemical and biological materials.

Quidel Corp.

Quidel Corporation is a California-based healthcare manufacturer that aims at enhancing the health and well-being of people around the globe with the development of diagnostic solutions. Its diagnostic tools facilitate the detection of diagnosis of some diseases and medical conditions. The company’s latest health advance is a rapid test for detecting COVID-19 in symptomatic and asymptomatic populations. It is legally and publicly used in Canada, contributing greatly to the company’s profits.

Fastest-growth healthcare stocks

There is a growth model that financial professionals use to evaluate the growth speed of stocks. This model scores companies based on a 50/50 weighting of their most recent quarterly year-over-year revenue growth (%) and their most recent quarterly year-over-year earnings per share (EPS). And according to this model, here are the best stocks to invest in.

PerkinElmer Inc.

PerkinElmer offers technology, services and solutions to the diagnostics, life sciences, food and applied markets. Scientists, researchers and clinicians under PerkinElmer develop tools and equipment which are used in genetic screening, drug discovery, optoelectronics, analytical instruments,…Its two recently-announced acquisitions have shocked the healthcare industry. PerkinElmer is going to acquire Immunodiagnostic Systems Holdings PLC for about $124 million and Nexcelom Bioscience for approximately $260 million.

PPD Inc.

PPD Inc. is an organization providing research on drug discovery, clinical development, lifecycle management and laboratory services. The main customers of the company are organizations whose business cores are pharmaceutical, biotechnology, medical devices. In mid-April, Thermo Fisher Scientific Inc. announced the acquisition of PPD for almost $17.4 billion.

Boston Scientific Corp.

Also called Boston Scientific, the company manufactures medical devices used in interventional medical specialties. The company also provides a wide range of medical products used in endoscopy, cardiology, urology and more. In March 2021, Boston Scientific Corp. announced that it is going to acquire a global surgical business Lumenis Ltd. for $1.07 billion.

Why invest in healthcare stocks?

  • The aging population: As the population is aging, the demand for healthcare-related products and services will increase enormously.
  • The Government’s influence: In every country, the government plays a key role in the healthcare system. And every time the government applies something new, innovative technologies are where to put money.
  • Diversification: A wise investor knows that diversification is a must to lower the risk of losing all money in a stock. Investors can diversify their investment portfolio by putting their money in healthcare.
  • Opportunities: The advancement in healthcare technology opens up many opportunities for investors to invest their money. Besides, the strong innovative trends in the healthcare sector are another factor making it worth investing in this field. The number of innovations that aim to improve patient outcomes and the lower cost burden is likely to increase in the future. This means that this healthcare sector is a potential one to put money into.

It is not exaggerated to say that healthcare is a potential sector where investors can find many attractive investment opportunities. The article introduces the best value healthcare stocks and the fastest-growth healthcare stocks so that investors can make a better and easier investment decision. 

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