The markets are volatile this year. And that’s been pretty evident early in the week.
But the fact is, the Federal Reserve still has room to move and some of this bad news is simply from the U.S.-China trade war. It just seems dark because there’s little real direction in the global economy and it’s hard to know where we stand.
Remember, at many points this year the markets were rallying on news that U.S. and Chinese trade negotiators were going to talk. And that’s happening again this month, so I’m sure the markets will be in bull mode again then, if not before.
The larger point is, you need stocks that are going to keep chugging along during these volatile times. One of the best ways to do that is find a U.S. sector that will be around regardless of what happens — like healthcare.
The seven healthcare stocks that are still worth a “buy” here are the kind of stocks that will keep you calm when the markets aren’t. They’re niche companies that provide big growth now, and a growing markets share for years to come.
Healthcare Stocks to Buy: The Joint (JYNT)
The Joint (NASDAQ:JYNT) is a small, specialized chiropractic franchise company with the goal of creating a place for accessible and affordable chiropractic care for everyone.
Since its beginnings in 1999 — and its later recreation in 2010 — it now has more than 425 offices around the country. And it continues to grow.
This alternative treatment has become increasingly popular for chronic joint pain, rather than pain killers and surgery. Chiropractic care is often seen as a more affordable and less risky option as traditional Western medicine becomes more expensive for individuals.
The stock has been on fire. It’s up 615% in the past three years. And the franchise model means it can grow without the company taking on huge amounts of debt.
Fulgent Genetics (FLGT)
Fulgent Genetics (NASDAQ:FLGT) is another healthcare company that has the future in mind. When it was founded in 2011, its goal was to provide affordable genetic testing.
And since then, genetic testing has become a necessary tool in the next generation of pharmaceuticals — gene therapies. By understanding each patient’s genetic markers, doctors can now customize treatments for everything from cancer to depression.
Although it only has a market cap of $188 million, Credit Suisse, Piper Jaffray and Raymond James all cover the stock. That should give you an idea of how interesting FLGT is. There are companies an order of magnitude larger that don’t get coverage from the big brokerage houses. This is how you attract big money … a key factor in the stock strategy I’ve nicknamed “Money Magnets.”
And this attention is also seen in FLGT stock — it’s up 200% year-to-date. But it has a big future ahead.
Viemed Healthcare (VMD)
Viemed Healthcare (NASDAQ:VMD) is another niche player in the growing sector of home healthcare — healthcare that comes to you.
VMD is the largest independent, non-invasive ventilation therapy provider in the U.S. Basically, it provides home equipment and support patients with a variety of respiratory diseases.
And all the equipment is supported by 24/7 access to professional staff.
If that’s a bit to get your head around, this certainly won’t be. VMD has seen a compounded annual growth rate of 44% since 2010, according to its most recent investor presentation.
In 2015, this was a $48 billion industry. By 2023 it’s projected to be a $75 billion industry as baby boomers get older. And that’s just the beginning. Boomers are on a graying trend that will last for decades.
In 29 states, serving nearly 20,000 patients, VMD has a strong footprint in this sector and that means a lot of growth — or a buyout at a big premium.
Ensign Group (ENSG)
Ensign Group (NASDAQ:ENSG) is one of the larger healthcare stocks in the group, with a market cap of $2.2 billion. It has also been around for 20 years, so it’s testament to the growth that’s possible in niche healthcare services as baby boomers start to get older.
ENSG is involved in all aspects of home healthcare support services, from assisted living and rehabilitative care to hospice. These are all crucial services for people who aren’t necessarily interested in leaving their homes for assisted living facilities. And this demographic continues to grow.
And for those in facilities, ENSG is also involved with independent living and assisted living communities.
It operates 248 healthcare facilities, 24 hospice agencies, 25 home health agencies and seven home care businesses across a handful of states.
ENSG stock is up this year, but isn’t a high-flier like some of the younger companies. But it’s in the right place at the right time and is fairly valued. It also pays a dividend of 0.5%. In my Growth Investor model portfolio, we do maintain a healthy weighting in income — as I’ve found it’s the best way to smooth out your returns. My Money Magnets are, on average, yielding 4.1% now.
Catasys (NASDAQ:CATS) has built a business in an emerging sector that looks to help people with untreated behavioral health conditions that worsen into chronic medical diseases.
In this world, CATS works with insurers and has developed its OnTrak program to help patients improve their lives so that they don’t end up with serious medical issues down the road.
These issues include everything from depression and anxiety to eating disorders to smoking.
CATS seems to be gaining traction now, especially as healthcare coverage becomes an issue of interest thanks to the coming election season. This is a valuable approach — whether things stay the same or coverage is expanded.
The stock reflects this optimism: It’s up 61% year-to-date.
NeoGenomics (NASDAQ:NEO) operates cancer-focused genetic testing labs across the United States, Switzerland and Singapore.
Diagnostics are generally a big theme for me at Growth Investor. But the big potential with NEO is its ability to test various cancer genomes, which is one of the biggest sectors in the pharmaceutical industry now — and easily for the next five years.
With the amount of knowledge that has been gathered because of the advancement of numerous technologies, including raw computing power, the ability to look into a cancer in an individual patient to find tailored treatment is nearing.
Also, finding soft spots in cancers to exploit on a molecular level has huge promise as well.
NEO operates in two segments, one that provides services to pathologists for cancer patient diagnoses and one that supports research from pharmaceutical companies.
The stock is up 56% year-to-date, with a lot of investor support for the long term.
VolitionRx (NYSEAMERICAN:VNRX) is another firm that is in the next-generation cancer sector. It develops blood-based cancer tests to diagnose various types of cancer.
Based out of Singapore, it has access to major markets in Asia, which will provide massive potential. And because it’s not a U.S.-based company, there isn’t the threat that it will become hostage to sanctions at some point.
If there is one healthcare system that has more growth potential than the U.S., it’s China. Providing healthcare to 1.4 billion people is a daunting task. And simple, quick and accurate solutions to challenging problems are very valuable.
Plus, China is also more interested in finding solutions within its sphere of influence moving forward, which helps VNRX.
The stock is up 182% year-to-date, which is evidence of its potential impact in the world’s biggest healthcare market.
There’s Another Important Piece of the Puzzle
While these stocks certainly have great growth prospects, dividends are also important these days, and here’s why.
These days, the global bond market is just going haywire: We’ve got falling and even negative yields overseas. But as investors retreat to U.S. Treasurys it’s causing bizarre effects here, too. Just look at what happened this summer, when the two-year Treasury actually began to yield MORE than the 10-year Treasury.
And even the 30-year Treasury can’t be relied upon for good yield anymore. In August, its yield dropped below 2% for the first time ever.
So — whether you’re managing big institutional cash, or your own portfolio — you’ll also want to look at my Money Magnets.
Not only did these stocks earn an “A” in my Portfolio Grader, thanks to strong buying pressure and great fundamentals …
The stocks also earn an “A” in my Dividend Grader. These stocks are able to pay great yields — and have the strong business model to back it up.
All in all, I’ve got 27 strong dividend growth stocks for you now, and one more coming, in Growth Investor … almost all of which yield more than the S&P 500. These stocks are poised to do well as we continue to see international capital flow to the U.S. markets. Click here to see how I found these stocks, and how you can get great performance out of YOUR portfolio — come what may.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.