Amid prevailing economic uncertainties, the healthcare sector has showcased extraordinary durability. BlackRock reports indicate that healthcare equities had 23% less volatility than the overall market in the previous year. Long-term growth drivers, such as the rising COVID cases, soaring demand for chronic disease treatment, and an aging global population, ensure constant demand, irrespective of the economic landscape.
Given the industry’s resilience and long-term growth prospects, fundamentally robust medical stocks Select Medical Holdings Corporation (SEM – Get Rating), Fresenius SE & Co. KGaA (FSNUY – Get Rating), and HCA Healthcare, Inc. (HCA – Get Rating) could be solid portfolio additions now.
The healthcare sector is forecasted to sustain strong growth in the ensuing months, driven by the swift spread of COVID-19 variants such as EG.5 (Eris), accounting for nearly 21.5% of infections in the United States. The FL.1.5.1 and XBB.1.16.6 strains follow closely behind, representing 14.5% and 9.2% of cases, respectively.
Despite the World Health Organization’s assertion of its marginal public health risk, a surge in infection, hospitalization, and mortality rates has prompted industry leaders to adjust existing vaccines. Presently, there is an average daily hospitalization of approximately 4,304 patients in the United States, with about 15% requiring intensive care.
The term “Tripledemic,” referring to the simultaneous winter surges of three distinct respiratory viruses — RSV (respiratory syncytial virus), flu (influenza), and COVID-19 — became prevalent and entered our lives last year.
It infected millions, strained healthcare facilities, and resulted in over 100,000 deaths in the United States during the four-month peak of these viruses in 2022. The “Tripledemic” situation will likely persist into the 2023 winter season, causing further infections and elevating hospital admission rates.
Furthermore, standout technologies are revolutionizing hospital operations by enhancing team interface, improving workflow efficiency, and timely empowering the medical staff with appropriate patient details, paving the way for more informed healthcare delivery.
The global hospital market revenue is expected to reach $4.70 trillion, growing at a 3.6% CAGR by 2027. The U.S. hospital market is expected to grow at a CAGR of 2.7%, resulting in a market volume of $1.60 trillion by 2027.
Given the industry tailwinds, it’s time to examine the fundamentals of the top three stocks to watch in the B-rated Medical-Hospitals industry, starting with…
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