The healthcare industry has been a critical part of the economy for a long time. According to a McKinsey & Company report, the healthcare industry is expected to grow at 7% from 2022 to 2027. Many healthcare companies heavily rely on trials, which need to be FDA approved in order to be put on the market. This makes it extremely hard to predict a company’s future performance. Successful trials could bring in potentially billions of dollars in revenue. However, a failed trial will likely result in stock-price decline. Thus, it is extremely important for investors to do prior research and only buy healthcare stocks with high growth potential. Below are the three best healthcare stocks investors should buy right now.
Bristol-Myers Squibb (BMY)
The first stock on our list of the best healthcare stocks to buy is Bristol-Myers Squibb (NYSE:BMY). The pharmaceutical powerhouse consistently ranks as one of the top companies on the market, and has several drugs that generate billions of dollars in revenue. Furthermore, Bristol-Myers Squibb has a number of drugs currently in clinical trials that could bring in huge success over the next decade. Among these is schizophrenia treatment Eliquis KarXT. The drug is expected to receive a recommendation from the FDA as early as next month. If it gets approved, it will be the first newly developed treatment for schizophrenia. That is a market that is estimated to grow to more than $7 billion in just four years. Right now, the stock is down over 10% this year alone and 20% year-over-year. Investors should buy while the stock is down.
AMN Healthcare Services (AMN)
AMN Healthcare Services (NYSE:AMN) is a medical care facilities company. It supplies healthcare workers, including nurses and industry professionals, on a temporary basis. It experienced huge success from high healthcare worker demand when there was a worker shortage. For those investors who are looking for high-risk, high-reward healthcare stocks, AMN should be on their radar.
The company’s recent earnings reports look very promising. In Q2 2024, AMN reported earnings per share (EPS) of 98 cents, beating analyst’s estimates by almost 20 cents. This was the fourth consecutive quarter that AMN Healthcare Services beat the earnings estimate. Furthermore, AMN trades at 13.64 times forward price to earnings ratio, which is lower than the majority of its competitors in the market. Before it bounces back to its peak price from 2022, investors should buy the stock.
Rapport Therapeutics (RAPP)
The last stock on the list is Rapport Therapeutics (NASDAQ:RAPP), a biotech company that is backed by Johnson & Johnson (NYSE:JNJ). The company went public on June 7th of this year, and it raised $154 million in initial public offering. The stock price ended up to over $20 on the first day it went public, and as of writing, it goes for $19.05. While there is still lots to learn about the company as it is new to the market, there are certainly things that will attract many investors.
Rapport Therapists is currently developing a focal epilepsy drug. The phase two trials should begin in the next few months, which means that there is going to be exciting news for the biotech startup for the upcoming years. This is especially exciting considering that in the U.S. alone, there are more than three million adult epilepsy patients, which means that it is a sizable market with room to explore.
On the date of publication, Andy Kim 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
