7 A-Rated Healthcare Stocks to Buy for the Long Haul


healthcare stocks - 7 A-Rated Healthcare Stocks to Buy for the Long Haul

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It’s likely going to take a few years to get beyond the stark difference between pre-pandemic and post-pandemic worlds. In the U.S., it’s very much like before and after 9/11. But there are some worthy healthcare stocks that are doing well now and will continue to succeed as the pandemic recedes.

Granted, there are some stocks that have gained notoriety during the pandemic and that spotlight hit them at just the right time. Increased interest meant more investors, which gave these firms more funding to expand their plans.

But the one thing all these stocks have in common is the fact that management has been able to navigate their businesses through some pretty choppy waters and they have proved that they can execute on their plans.

That’s crucial in this space. Taking an idea from “lab to fab” isn’t easy. These companies have brought their companies across that divide and will continue to excel. Furthermore, each of these stocks has an A-rating in my Portfolio Grader:

  • BioNTech (NASDAQ:BNTX)
  • Joint Corp (NASDAQ:JYNT)
  • Bruker Corp (NASDAQ:BRKR)
  • Heska Corp (NASDAQ:HSKA)
  • Prothena Corp (NASDAQ:PRTA)
  • InMode (NASDAQ:INMD)
  • Alkermes (NASDAQ:ALKS)

Healthcare Stocks to Buy: BioNTech (BNTX)

A scientist holding up her biotech experiment in a small Petri dish.

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This name is likely one of the more familiar healthcare stocks on this list due to its work on the top U.S. Covid-19 vaccine in partnership with big pharma Pfizer (NYSE:PFE).

But BNTX is really an immunotherapy biotech company, not a vaccine firm. Its technology was used to build the Covid vaccine but the underlying concept can be used for a number of other medications.

Much of BNTX’s work has been with cancer drugs and finding ways to help the body’s own immune system help fight various cancers as well as infectious diseases. The attention it has received as part of the massive rollout of vaccines and boosters has launched this Germany-based company into the stratosphere. It went public in early October 2019 at $13 a share. Today, slightly more than two years later, it’s at $275 a share, with a $68 billion market cap — and it’s off its highs.

This kind of capital will give it a great opportunity to get more drugs into its pipeline and into drug trials. And given the street cred it has established with the Covid vaccine, it will have plenty of interested partners to work with, or simply buy it.

BNTX stock is up 218% year-to-date (YTD), yet its current price-to-earnings ratio (P/E) is just 17x.

Joint Corp (JYNT)

a chiropractor works on a woman's back

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This has been one of my favorite stocks for a while now. And it has nothing to do with drug pipelines or medical equipment. It’s a new model for an old therapy — chiropractic alignment.

What the founders decided was chiropodists would have much more business if they were centrally organized so customers wouldn’t have to search one out and compare one to another without a standard of some sort. JYNT started with eight clinics and now operates more than 600 franchise operations around the U.S.

Chiropractic care is a $15 billion industry and JYNT is the first company to create a standardized organizational structure around it. JYNT stock is up an impressive 232% YTD. Its P/E is around 72x, but it has positive earnings and continues to expand. That means there’s a good chance earnings will catch up with its price.

Healthcare Stocks to Buy: Bruker Corp (BRKR)

a doctor looks at a tablet

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Magnetic resonance imaging (MRI) has been around since the 1970s, but the machines became available in the ‘80s.

Today, they’re used for far more than just exploring the inner workings of the human body. They’re used in pharmaceuticals and biologics, food analysis, diagnostics and industrial research. MRIs are a big business and BRKR is one of the leading companies supporting the growing use of MRI technologies.

BRKR certainly can be called a healthcare stock but it’s much more. And as the possibilities grow for this non-invasive technology, the better for BRKR.

Its unique niche in this sector will also work to its advantage because non-invasive therapies are favored by federal healthcare insurance programs. And MRIs are a good source of revenue for hospitals and healthcare companies.

BRKR stock has gained 50% YTD and as Covid patients ease, hospitals will get back to normal, increasing these procedures.

Heska Corp (HSKA)

image of a dog with its arms on a table

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One of the booms during the pandemic lockdowns was pets. Pandemic pets were hot. But the furry friend trend has been growing for quite some time. The pet care market has grown by 66% in the past decade. It was a $52 billion a year industry in the U.S. in 2019, and that continues to trend up.

HSKA makes and distributes diagnostic tools for veterinary practices. This is the new generation of veterinary medicine. Instead of taking samples and then sending them to a lab offsite to get results shipped back to them, vets can now conduct a number of routine lab tests in their office, in real time.

This is a great benefit to both owners and the vets, since diagnoses can be made quickly and treatments can begin immediately. HSKA has a U.S. division and an international division, which includes Australia, Malaysia, France, Germany, Spain, Italy and Switzerland.

HSKA stock has risen more than 56% YTD. Its Q2 numbers were strong and it upgraded its earnings for Q3 and Q4. It has slightly negative earnings due to its growth footing, but revenue is strong.

Healthcare Stocks to Buy: Prothena Corp (PRTA)

a hand writing the words immunotherapy on a clear board

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PRTA has been at work since 1969 looking for therapies and solutions for neurodegenerative diseases like Alzheimer’s, Parkinson’s, amyloidosis and others.

Currently it has seven drugs through preclinical trials, with four of those in phase 1, 2 or 3 of clinical trials. And it’s working with major pharmaceutical companies who are partnering on some of PRTA’s drugs, helping fund trials.

Since it’s a development level biotech, it’s not profitable yet, but its results are promising enough to have partners that are regularly putting up tens of millions or more in funding.

The hope of most healthcare stocks is to have big pharma see what they’re doing and be impressed enough to back the research. For PRTA, this hope is a reality.

PRTA stock is up a whopping 380% YTD. Continued positive results will push it even higher — it only has a $2 billion market cap now — or a big pharma will just buy it out.

InMode (INMD)

A photo of a smiling woman.

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Usually when we think of healthcare stocks, we think of biotechs or life science or diagnostic companies. But also in this sector are companies like INMD. This Israel-based company focuses on minimally invasive aesthetic medical products focused on women that you might find in a specialty spa.

This sector has been growing rapidly in recent years with the advent of numerous treatments that can be applied outside a doctor’s office with a small amount of training. Many Gen X and millennials are getting to the age where these procedures are much more appealing than full-on cosmetic surgery.

INMD is turning a profit and continues to expand globally. The stock is up more than 300% YTD, but its 64x P/E is high. Still, its earnings will keep pace with its growth.

Healthcare Stocks to Buy: Alkermes (ALKS)

Packs of blue and pink pills are piled on top of each other.

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Healthcare stocks in the mental health and addiction space have made great strides in recent years, as technology has given us new insights into the causes and physiologies of people suffering from these difficult conditions. No longer is willpower an addiction solution.

ALKS is also developing four immunotherapy oncology drugs as well. One of those is in phase 2 trials. It has three other drugs that are Food and Drug Administration (FDA) approved. Aristada treats adult schizophrenia. Vivitrol treats alcohol dependence as well as opioid relapse. And Lybalvi treats schizophrenia and bipolar disorder and was just approved by the FDA in June, so it hasn’t really made an impact to the bottom line yet.

The company has been around for a decade and is domiciled in Ireland, although its drugs are distributed in the U.S. market. It’s continuing to expand its markets for its products while guiding other candidates through the pipeline. The oncology drugs have the greatest chance to be game-changers for the company. The stock is up 54% YTD.

On the date of publication, Louis Navellier has positions in BNTX, JYNT, HSKA, PRTA and INMD in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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