There are several reasons to consider health care stocks, and they don't all have anything to do with the coronavirus vaccination, as you might believe.
Why buy health care stocks? Simple.
The Commonwealth Fund found that, when compared to other countries, the United States spends more on health care as a proportion of the economy than any other country — almost twice as much as the average OECD nation. The use of costly technologies such As MRIs and specialist operations (such as hip replacements) is greater in the United States than in other countries.According to the Commonwealth Fund, the United States has one of the highest rates of breast cancer screening among women aged 50-69 and the second-highest rate of flu vaccinations among persons aged 65 and older.
When you begin researching health care companies, several recurring themes emerge: solid balance sheets and cash for acquisitions, as well as dividends to line your pockets. An expanding global population, a strong demand for elective operations, pharmaceutical sales, medical equipment and diagnostic testing are all paving the way for a natural nod to health care stocks.
Sure, large technology and cryptocurrency might pique your interest, but why not take a look at health care in 2022?
3 Health Care Stocks to Add to Your Portfolio in 2022
Healthcare firms may provide your portfolio a degree of stability that no other sector can match. Take advantage of the many possibilities that healthcare equities provide to a well-balanced portfolio. In 2022, consider adding at least one of our three health care suggestions to your portfolio.
ELI LILLY AND COMPANY (NYSE: LLY)
Eli Lilly and Company (NYSE: LLY), which is located in Indianapolis, Indiana, has a huge operation with over 34,000 employees worldwide, around 8,000 research and development workers, clinical research facilities in 55 countries, R&D facilities and manufacturing plants in seven nations, and products marketed in 120 nations.
The following are examples of treatable conditions and existing medications that are included in its large selection:
- Cardiovascular treatment: ADCIRCA
- Neurodegeneration treatment: AMYViD
- COVID-19 treatment: bamlanivimab and etesevimab, baricitinib
- Diabetes treatment: BAQSIMI, BASAGLAR, Glucagon Glyxambi, Humalog, Humulin, Insulin Lispro, Jardiance, Jentadueto, Lyumjev, Synjardy, Tradjenta, Trijardy, Trulicity
- Cancer: CYRAMZA, ERBITUX, ALIMTA, Gemzar, Portrazza, Retevmo, Verzenio Cancer
- Bone, muscle, joint treatment: FORTEO
- Endocrine treatment: Humatrope
- Immunology: Olumiant, Taltz
- Pain: EMGALITY, REYVOW
- Neuro treatment: Zyprexa Relprevv
The revenue of Lilly and Company increased to $6.773 billion in the third quarter of 2022, up from $5.74 billion a year earlier. Both third-quarter and full-year revenue rose 11% in 2021. Trulicity, Taltz, Verzenio, and Emgality were among the goods that contributed to that growth.
In more exciting news, Lilly submitted tirzepatide in type 2 diabetes and a rolling submission for donanemab to the FDA for expedited approval in early Alzheimer's disease.
It also got US approvals for new indications for Verzenio and Jardiance, as well as European ones for heart failure with preserved ejection fraction (HFpEF), and lebrikizumab in atopic dermatitis.
UNITEDHEALTH GROUP INC. (NYSE: UNH)
UnitedHealth Group (NYSE: UNH), a health care business, has four subsectors under two corporate platforms: health benefits and health services. UnitedHealthcare, OptumHealth, OptumInsight, and OptumRx are the four segments.
UnitedHealthcare: Provides health care through the following organizations: UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement, UnitedHealthCare Community and State, and UnitedHealthcare Global.
Optum: Serves payers, care providers, employers, governments, life sciences companies, and consumers via OptumHealth (care delivery, management, wellness and more), OptumInsight (data, analytics, research, etc.), and OptumRx (pharmacy care services).
UNH's revenue increased 11% in 2021, and the revenue growth drove a 20% rise in operating profit and strong cash flow. UNH stock has outperformed the broader market by 90% compared to the S&P 500 rise of 68% since 2017. An upside 2022 investment option is paved by its premium generation, fees for medical and consulting services and sales of medical products and services.
CENTENE CORP. (NYSE: CNC)
In our study of low-cost healthcare firms poised for an upswing, Centene Corporation (NYSE: CNC), which is based in St. Louis, Missouri, stood out. As of this writing, Centene's stock price was $76.34.
Centene is a U.S.-based healthcare multinational that provides health plans and services to under-insured and uninsured Americans through government-subsidized programs as well as its own primary and specialty care providers, hospitals, and ancillary suppliers. Its health service plans include the following expansive array:
- Primary and specialty physician care
- Inpatient and outpatient hospital care
- Emergency and urgent care
- Prenatal care
- Laboratory and X-rays
- Home-based primary care
- Vision and dental care
- Therapy and social work
- Care coordination services
The firm also sells over-the-counter medicines, medical equipment, and behavioral health services. It also provides a nurse advice line and after-hours assistance as well as support for veterans eligible for the Military Health System..
Centene Corp.'s financial health and growth prospects prove that it has the potential to outperform the market, with a 2022 revenue forecast that exceeded expectations.The firm has begun evaluating potential options for its worldwide business, anticipating revenue of $135.9 billion to $137.9 billion in 2022. The stock is up over 25% as health care ETFs have lagged recently. For the third quarter of 2021, total revenues were $32.4 billion, up 11% over the third quarter of 2020.The organization announced a $0.99 diluted EPS for the third quarter of 2021, compared to $0.97 for the third quarter of 2020.