Healthcare stocks remain a focal point for investors seeking stability and growth. The convergence of technology and an increased emphasis on global health has created an environment for ripe investment opportunities.
These stocks can put discerning investors on the path to achieving substantial returns over the long term. There are industry leaders who have dominated the sector over the last several decades. These companies will continue to benefit from the tailwinds of global healthcare spending, making them prime investment opportunities for 2024.
Let’s discover the three best healthcare stocks for a healthy year ahead.
Vertex Pharmaceuticals (VRTX)
Vertex Pharmaceuticals (NASDAQ:VRTX) is an American biopharmaceutical company headquartered in Boston, Massachusetts. Profitability has accelerated over the last several years, and new pipeline opportunities accelerate growth in FY24.
Vertex is primarily known for its novel treatment addressing cystic fibrosis. As a leader in their portfolio, Trikafta has continued to see an acceleration in revenue growth. In Q3 2023, sales jumped 13% YOY to $2.3 billion. Furthermore, the company has other novel treatments in its pipeline which could provide monstrous returns through 2024.
The company recently received FDA approval for Exa-Cel, the world’s first gene editing therapy in combination with CRISPR Therapeutics (NASDAQ:CRSP). It’s also developing VX-548, a therapy in Phase 3 trials that aims to provide a non-opioid treatment to alleviate acute and neuropathic pain. This could be one of the biggest market opportunities in healthcare, contributing to a significant acceleration in revenue growth in the coming years.
United Therapeutics (UTHR)
United Therapeutics (NASDAQ:UTHR) is one of the most compelling healthcare stocks to buy for 2024. They’re an under-the-radar diversified healthcare company addressing areas of lung disease and manufacturing.
Over the last two years, the company has had an acceleration in revenue growth and operating income. This is largely due to Tyvaso, their novel inhalation therapy for pulmonary arterial hypertension. The company also has other FDA-approved drugs, including Remodulin, Orenitram, Adcirca and Unituxin.
In their latest quarterly results, United Therapeutics revenue grew 18% YOY to $609.4 million. Net income increased 12% to $268 million, or $5.38 per share. The company saw meaningful growth across all products, with Tyvaso being the primary driver. President and COO Michael Benkowitz expects the company to achieve an annual run rate of $4 billion by 2025. That means revenue could nearly double in the next two years. This makes United Therapeutics one of the best healthcare stocks to buy for 2024.
UnitedHealth Group (UNH)
UnitedHealth Group (NYSE:UNH) should likely need no introduction and remains one of the top healthcare stocks to consider for 2024. Shares recently plunged after the company reported its FY23 financial results.
The company continues to deliver strong YOY growth in revenue at both Optum and UnitedHealthcare. Their efforts to improve patient care and diversified portfolio growth have been working. They have also delivered robust cash flow in FY23, with operating cash flow hitting a record $29.1 billion.
UnitedHealth Group has continued to see sustained, profitable growth across all segments of its business. This includes FY23 EPS of $25.12 per share, above the estimates reported in their Q3 2023 financial results. If you’re looking for a safe, diversified healthcare stock, look no further than this transformative company.
On the date of publication, Terel Miles 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.
