The limitations of the global healthcare industry were exposed last year as the COVID-19 pandemic wreaked havoc globally. Nevertheless, the industry has been playing a vital role in protecting populations worldwide from the virus with its products and services. Also, the industry is now focusing on finding cures for other chronic critical illnesses and for solutions to stay ahead potential future pandemics. This, along with the integration of technology in healthcare services, should keep driving the industry’s growth. According to…
National Health Expenditure (NHE) data, national health spending is expected to reach $6.2 trillion by 2028.
Given the near-inelastic demand for healthcare products and services, healthcare companies are perceived as defensive companies. So, betting on healthcare stocks could help investors hedge their portfolios against current market volatility. Investors’ interest in the healthcare sector is evident in the Health Care Select Sector SPDR Fund’s (XLV) 14.3% returns over the past nine months.
So, we think it could be wise to bet now on fundamentally sound healthcare companies Abbott Laboratories (ABT – Get Rating), Agilent Technologies, Inc. (A – Get Rating), and Laboratory Corporation of America Holdings (LH – Get Rating).
Click here to checkout our Healthcare Sector Report for 2021
Abbott Laboratories (ABT – Get Rating)
ABT manufactures and sells health care products worldwide. It operates through four segments: established pharmaceutical products, diagnostic products, nutritional products, and medical devices.
The company’s revenue increased 35.3% year-over-year to $10.46 billion for the first quarter, ended March 31, 2021. ABT’s net income for the quarter was $1.79 billion, which represents a 217.8% increase from the same period last year. Its EPS came in at $1.00, up 222.6% from the year-ago value.
Analysts expect ABT’s EPS and revenue to increase 87.7% and 45.9%, respectively, year-over-year to $1.07 and $9.94 billion for the current quarter, ending June 30. It surpassed consensus EPS estimates in each of the trailing four quarters.
ABT announced on May 17 that it had received a CE Mark for its latest-generation transcatheter aortic valve implantation (TAVI) system—Navitor—making the minimally invasive device available for people in Europe with severe aortic stenosis who are at high or extreme surgical risk. With aortic stenosis cases expected to climb in Europe and the United States with their ageing populations, the demand for the device might increase significantly in the near-to-midterm. The stock has gained 19.5% over the past year to close yesterday’s trading session at $109.20.
ABT’s bright prospects are also apparent in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It has an A grade for Growth, and a B grade for Value, Quality and Stability. Click here to see the additional POWR ratings for ABT (Momentum and Sentiment).
ABT is ranked #15 of 231 stocks in the Medical-Pharmaceuticals industry.
Agilent Technologies, Inc. (A – Get Rating)
A provides application focused solutions for the life sciences, diagnostics, and applied chemical markets worldwide. It operates through three business segments: life sciences and applied markets, diagnostics and genomics, and its Agilent CrossLab business.
The company’s net revenue increased 23.2% year-over-year to $1.53 billion for its fiscal second quarter, ended April 30. A’s net income was $216 million, which represents a 113.9% year-over-year increase. Its non-GAAP EPS for the quarter increased 36.6% year-over-year to $0.97.
A’s EPS and revenue are expected to…
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