The best healthcare stocks to invest in today? 2 names to watch
Healthcare stocks have been among the best performers in the stock market over the past decade. While the overall stock market has more than doubled since 2009, the SPDR Health Sector Fund (XLV), which tracks healthcare stocks in the S&P 500, more than tripled. Healthcare stocks outperformed the market for a variety of reasons. First, healthcare is one of the few sectors that is largely immune to economic cycles. When the economy weakens, people may cut back on discretionary spending, but they will still need health care.
Second, health care costs have been rising faster than inflation for many years, and this trend shows no signs of slowing. As a result, healthcare companies have been able to steadily increase their profits at a time when many other companies are struggling to maintain profit margins.
Finally, healthcare stocks tend to be less volatile than the broader market, providing investors with some downside protection. Given these factors, it’s no wonder that healthcare stocks have been investors’ favorites in recent years. With that in mind, here are two large cap healthcare stocks for your list right now.
Health stocks to buy [Or Avoid] Now
1. UnitedHealth Group (UNH stock)
Initially we have UnitedHealth Group (A H). In short, UnitedHealth Group is a diversified health and wellness company. UnitedHealth Group offers a comprehensive portfolio of products and services through two distinct platforms: UnitedHealthcare, which provides health coverage and benefits services; and Optum, which provides technology-based health information and services.
UNH Recent Stock Market News
UnitedHealth Group released its third-quarter 2022 financial results on Friday. In them, the healthcare giant reported third-quarter 2022 earnings of $5.79 per share, with revenue of $80.9 billion. dollars. Those results were stronger than analysts had expected, with earnings of $5.45 per share and revenue estimates of $80.5 billion. Additionally, these revenue numbers represent an increase of approximately 12% over the same period a year prior.
Andrew Witty, Chief Executive of UnitedHealth Group, said in the statement to shareholders, “The strength of our performance reflects the diligence and determination of our colleagues to improve the experience of people across the healthcare system and to make high-quality care simpler, more accessible and more affordable.“
UNH Stock Chart
So far this year, UNH stock is up 2.16% at Friday’s close, with shares trading at $513.13 per share.
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2. Eli Lilly & Company (LLY shares)
Then let’s dive into Eli Lilly & Co.. (THERE IS). Eli Lilly & Company is a multinational corporation that manufactures and sells pharmaceutical products. The company focuses on areas such as neuroscience, endocrinology, cancer and immunology.
LLY Recent Stock Market News
Earlier this month, the company announced that it had been approved for fast-track designation from the US FDA for its tirzepatide treatment. In detail, tirzepatide is a treatment for obese or overweight adults with weight-specific comorbidities. For the uninitiated, the FDA grants companies Fast Track designation to facilitate treatment development and expedite drug review to treat serious conditions and address an unmet medical need.
Mike Mason, President of Lilly Diabetes said:We are pleased with the FDA’s decision to grant Fast Track designation for tirzepatide, and look forward to completing our continuing submission next year. “Obesity is a chronic disease that affects the health of nearly 100 million Americans and is a significant contributor to healthcare costs.“
LLY Stock Chart
Year-to-date, shares of Eli Lilly & Co have outperformed broader markets, with shares so far up more than 21% in 2022. Meanwhile, at the market close of On Friday, LLY stock is currently trading at $331.39 per share.
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