The healthcare industry has seen a massive influx of investment, innovation, and new entrants over the past two years. Furthermore, $44 billion was raised in health innovation globally last year, which is twice as much as 2020, while the acquisition of health and health tech companies grew 50%. In addition, healthcare spending in the United States is ballooning, with…
national healthcare expenditure projected to grow at an average annual rate of 5.4% to $6.20 trillion by 2028.
This year is expected to be a transformative one for global health, with digitally enabled care as the center of the transformation. The global digital health Market size is expected to reach $430.52 billion by 2028, achieving a 16.9% CAGR. Also, near-inelastic demand for healthcare and continuing disruptions in the healthcare industry related to technology and medical breakthroughs should drive growth.
Given this backdrop, we think healthcare stocks AbbVie Inc. (ABBV – Get Rating), Sanofi (SNY – Get Rating), and AmerisourceBergen Corporation (ABC – Get Rating), which have had a solid run lately, could continue climbing in price. So, these stocks could be ideal bets for this year.
Click here to checkout our Healthcare Sector Report for 2022
AbbVie Inc. (ABBV – Get Rating)
ABBV in North Chicago, Ill., is a research-based biopharmaceutical company that is engaged in research and development, manufacturing, commercialization, and sale of medicines and therapies. ABBV offers its products in various therapeutic categories, including immunology, oncology, aesthetics, neuroscience, and more.
Today, ABBV announced that Alberta, Saskatchewan, British Columbia, and Manitoba now reimburse VENCLEXTA® (venetoclax) in combination with obinutuzumab to treat adult patients with previously untreated chronic lymphocytic leukemia (CLL), demonstrating the company’s expertise in oncology.
Earlier, ABBV announced an agreement with the pan-Canadian Pharmaceutical Alliance (pCPA) for VENCLEXTA® (venetoclax) in combination with azacitidine for the treatment of patients with newly diagnosed acute myeloid leukemia (AML) who are ineligible for intensive induction chemotherapy. And Quebec, Saskatchewan, and Manitoba are the first provinces to reimburse the combination treatment.
ABBV’s net revenues increased 7.4% year-over-year to $14.89 billion in its fiscal fourth quarter, ended December 31. Its operating earnings rose 35.2% from the prior-year quarter to $5.07 billion. Its net earnings came in at $4.04 billion, indicating a substantial increase from its year-ago value of $36 million. Its adjusted EPS increased 13.4% year-over-year to $3.31.
The Street expects the company’s revenues to be $13.69 billion in its fiscal first quarter, ending March 2022, indicating an increase of 5.9% year-over-year. The company’s EPS is expected to increase 7.5% year-over-year to $3.17. Furthermore, ABBV has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters.
The stock has gained 38.1%in price over the past year and 8.4% year-to-date. ABBV hit its 52-week high of $148.35 in its last trading session and closed at $146.76.
ABBV’s sound fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, equating to Strong Buy in our rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
ABBV has a B grade for Value, Sentiment, and Quality. It is ranked #7 among the 179 stocks in the Medical – Pharmaceuticals industry.
In addition to the POWR Ratings grades highlighted, one can see the ABBV’s Growth, Momentum, and Stability ratings here.
Sanofi (SNY – Get Rating)
Headquartered in Paris, France, SNY researches, develops, manufactures, and markets therapeutic solutions in the United States, Europe, and internationally. It operates through three segments: Pharmaceuticals; Vaccines; and Consumer Healthcare.
Yesterday, SNY and GlaxoSmithKline (GSK) announced…
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