In discussing healthcare tech stocks, it pays to understand what healthcare technology is broadly. Healthcare technology, also known as HealthTech, refers to any technology developed to improve the healthcare system. It encompasses everything from robotic-assisted surgery to telemedicine and Software. Notably, these technologies have been shown to reduce costs across the healthcare system. Indeed, most of us knows this needs to happen.
Today’s healthcare industry is valued at $2 trillion, but is heavily burdened by high costs and inefficiencies. Anything that improves the efficiency of delivering of positive patient outcomes can contribute to lower costs and better outcomes. It’s that promise that attracts investors who see the value in such improvements.
Further, healthcare is a relatively safe sector to invest in. Demand is generally steady. However, the tech sector is much less steady, fluctuating more significantly as the macro backdrop shifts. Accordingly, combining the two offers more stable, but impressive growth, for investors seeking meaningful total returns. Here are three healthcare tech stocks I think could be big winners in April and beyond.
| NVCR | Novocure | $64.06 |
| VEEV | Veeva Systems | $177.00 |
| SENS | Senseonics Holdings | $0.55 |
Novocure (NVCR)
Novocure (NASDAQ:NVCR) is a promising healthcare tech stock working to cure cancer. The company’s Tumor Treating Fields technology is commercialized in multiple countries for specific cancer treatments. Those therapies extend survival in patients with some of the most aggressive, treatment-resistant forms of cancer.
The Tumor Treating Fields technology uses low-intensity, medium-frequency alternating electrical fields to induce replication stress in cancerous cells. Most of us remember mitosis from high school science. Tumor Treating Fields technology stops mitosis in cancer cells, thereby preventing cell division, leading to cell death.
Novocure has 3 FDA-approved applications and reported $528 million in revenues in 2022. The company has four more upcoming clinical milestones to consider. Two will occur in 2023, and the other two in 2024.
Revenues were flat in 2022. So, its potential is tied to more profitable commercial opportunities. The more FDA approvals it gets, the better. The same is accurate as it relates to the company’s international market expansion plans.
Veeva Systems (VEEV)
Veeva Systems (NYSE:VEEV) provides cloud solutions for the life sciences industry. Its products and services address clinical, regulatory, safety, medical, commercial, and quality issues specific to pharmaceutical and life sciences companies. The ultimate promise of Veeva Systems is to help industry firms bring products to market faster.
The company did very well in 2022, sporting Q4 growth of 16%, which matched its overall growth in 2022. The company’s overall revenue number came in at $2.16 billion, $1.74 billion of which was attributable to subscriptions. Subscriptions are significant to Software as a Service (SaaS) firms, including Veeva Systems. They are generally the backbone of SaaS company revenues. So, it’s particularly positive that subscriptions grew by 17% for 2022 overall. Investors should also note that Veeva Systems’ 2022 top-line performance exceeded guidance.
Subscription revenue growth primarily came from established products, suggesting continued stability for Veeva Systems. The company expects sales between $2.35 to $2.36 billion this year.
Senseonics Holdings (SENS)
Senseonics Holdings (NYSEMKT:SENS) stock is inexpensive, trading around 55 cents per share, at the time of writing. The company has created the first and only long-term implantable continuous glucose monitor making it novel. The Eversense E3 monitor is a three-part system that continuously monitoring glucose for up to six months. It consists of a sensor implanted in the upper arm, a transmitter worn on the arm, and a mobile app used for readings.
Part of what makes SENS stock promising is the simple fact that it is so cheap and has the potential to provide quick returns. In fact, the consensus price target for SENS stock currently suggests more than 100% upside.
Target prices alone aren’t a solid reason to invest in any company. That’s particularly true for penny stocks like Senseonics. However, there are a few fundamental reasons to believe Senseonics remains promising in April and beyond.
Notably, total revenues in 2022 reached $16.39 million, up 19.9% year-over-year. Management has given guidance that payments could increase by as much as 46% in 2023. Further, Senseonics achieved full-year profitability for the first time in 2022.
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On the date of publication, Alex Sirois did not have (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.
