Healthcare is a basic human need that almost everyone will require at some time in their lives. Consequently, there is a great deal of potential for investors when there is a need for anything.
The following are the top seven healthcare companies to watch in 2022:
Intuitive Surgical
Intuitive Surgical is an excellent example of a medical equipment company that also comes under the surgical stock category. Since its first release in 1999, the da Vinci surgical robot has been utilized in more than 10 million operations. Unfortunately, some elective procedures had to be postponed due to COVID-19, which harmed the company’s bottom line.
Vaccines have helped Intuitive recover to its prior high growth, but the pandemic has contributed create a hard environment for the supply chain for Intuitive and its clients. Nevertheless, with an older population, the firm expects to see a lot of future growth due to the use of da Vinci surgical instruments in these operations.
Roche Holding AG (RHHBY)
Pharmaceutical and diagnostics company Roche Holding AG (RHHBY) is situated in Switzerland. According to Karen Andersen, Morningstar analyst, Roche has a competitive edge because of the company’s top-notch diagnostics technology and remarkable medicine lineup.
As a result of its concentration on biologics, which makes up over 80% of pharmaceutical revenues, Andersen believes that Roche is better able to withstand generic drug pressure.
According to her, Roche owns 20 percent of the worldwide market share in vitro diagnostics. RHHBY stock, which ended on May 3 at $45.13, has a fair value estimate of $58 according to Morningstar, which rates the company as a “buy.”
Beam Therapeutics, Inc.
“Base editing” is a technology used by Beam Therapeutics employs CRISPR to alter single DNA bases. A clinical study of Beam’s BEAM-101 therapy for beta thalassemia, sickle cell disease, is presently underway.
In addition, therapy for sickler disease and a treatment for lymphoblastic leukemia (T-cell acute), both developed by Beam, are expected to reach clinical trials shortly, according to BOA analyst Greg Harrison. BEAM ended at $40.03 on May 3 with a “buy” rating from Bank of America and a $154 price goal.
Vertex Pharmaceuticals
One of the most prominent biotech companies, Vertex Pharmaceuticals, Inc. Cystic fibrosis (CF), a rare hereditary condition that attacks human lungs and other organs, is the primary focus of the company’s research and development.
Trikafta, a novel CF treatment from Vertex, has the potential to increase the number of patients that the company’s medications can treat by more than half. In addition to creating medications for uncommon genetic disorders, the business is also working on treatments for more prevalent ailments, such as type 1 diabetes.
Pfizer Inc. (PFE)
Pfizer shares have underperformed the S&P 500 throughout the same period. But Stewart Glickman, CFRA Research analyst, thinks there are lots of other excellent reasons to favor Pfizer stock, despite the vaccine’s lack of effect on the company’s shares.
He sees Pfizer’s acquisition of ReViral as a low-risk play on the neglected market for RSV drugs. PFE ended at $49.29 on May 3 with a “strong-buy” rating from CFRA and a $71 PT – price target.
Merck & Co. Inc.
This is one of the world’s major pharmaceutical companies. Sales of Merck’s oral COVID-19 antiviral medication – molnupiravir – in the 1st quarter of this year were $3.2 billion. The company’s cancer medicine, Keytruda, and HPV vaccination, Gardasil, were also key growth drivers.
According to the company’s projections, between 17% and 19% sales growth is expected in 2022. Glickman says Merck’s revenue grew 19 percent last quarter, even after eliminating molnupiravir sales. According to this analyst, long-term investors will benefit from Merck’s concentration on cancer, cardiovascular disease, and vaccines. The MRK stock, which last traded at $87.10 on May 3, has a “strong-buy” rating from CFRA and a $100 PT.
Grifols SA (GRFS)
Grifols SA (GRFS) produces blood plasma-derived medicines. In 2021, the pandemic affected the company’s plasma supply, but in 2022, things are looking good. GRIFOLS has been able to boost its plasma collection in the United States and Europe by 4 percent over the previous three quarters because of the company’s aggressive acquisition strategy, including the planned Biotest takeover.
As a result, Grifols expects supply growth of plasma to accelerate this year; which Andersen believes will increase production efficiency and assist in increasing margins to 30 percent by 2026.
