Main Health Care Actions for August 2021

Health, one of the largest and most complex sectors, is made up of a wide range of companies that sell medical products and services. The healthcare sector includes companies that sell drugs, medical devices, and insurance, as well as hospitals and healthcare providers. Some of the world’s largest healthcare companies include UnitedHealth Group Inc. (UNH), Pfizer Inc. (PFE), and Abbvie Inc. (ABBV). The healthcare sector has drawn the attention of investors since some of these companies received regulatory approval for drugs to treat COVID-19 and began distributing vaccines, and others are rushing to develop and gain approval for new COVID-drugs. 19. There are also companies involved in various other ways, such as supplying products to test and administer virus treatments.

Despite this surge in demand for COVID-19 treatments, healthcare stocks have underperformed the overall market. In this story, the sector is represented by the Health Care Select Sector SPDR ETF (XLV). XLV’s total return was 25.0% for the past 12 months, down from Russell 1000’s total return of 38.1%, as of July 16, 2021. The statistics in the tables below are also as of July 16.

Here are the top 3 health stocks with the best value, the fastest growth, and the most momentum.

These are the healthcare stocks with the lowest price-to-earnings (P / E) in the last 12 months. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P / E ratio shows that you are paying less for every dollar of profit generated.

Better value health actions
Price ($) Market Cap ($ B) Final 12-month P / E ratio
Sage Therapeutics Inc. (SAGE) 47.74 2.8 4.0
Bio-Rad Laboratories Inc. (BIO) 674.78 20.1 5.0
Quidel Corp. (QDEL) 125.12 5.3 5.8

Fountain: YCharts

  • Sage Therapeutics Inc .: Sage Therapeutics creates treatments for disorders of the central nervous system, including schizophrenia and major depressive disorder.
  • Bio-Rad Laboratories Inc .: Bio-Rad is a manufacturer of analytical instrumentation and life science research products. These tools are used to separate and analyze complex chemical and biological materials. In late June, Bio-Rad announced a partnership with Seegene, Inc., a South Korea-based molecular diagnostics company. According to the association, Seegene will provide diagnostic tests for use with Bio-Rad products, which help detect infectious diseases. The product will be used in the US markets, pending clinical development and approval from the Food and Drug Administration.
  • Quidel Corp .: Quidel is a developer and manufacturer of healthcare diagnostic products. The company offers diagnostic solutions for the detection and diagnosis of infectious, gastrointestinal, autoimmune and other diseases. The company also makes products to test COVID-19. Quidel announced on July 19 that the state of Delaware had selected its service provider, Quidel Services LLC, to implement a full-service COVID-19 testing program in K-12 schools this fall.

Here are the top health stocks ranked by a growth model that rates companies based on a 50/50 weighting of their most recent quarterly revenue growth percent year-over-year (YOY) and their earnings per share (EPS) most recent quarterly growth. Both sales and profits are critical factors for the success of a business. Therefore, ranking companies by a single growth metric makes a ranking susceptible to accounting anomalies from that quarter (such as changes in tax law or restructuring costs) that can make one or the other figure unrepresentative. of the business in general. Companies with quarterly EPS or revenue growth greater than 2,500% were excluded as outliers.

Fastest growing health actions
Price ($) Market Cap ($ B) EPS growth (%) Revenue growth (%)
PerkinElmer Inc. (PKI) 154.10 17.3 1,020 100.4
PPD Inc. (PPD) 46.00 16.2 2,000 28.5
Boston Scientific Corp. (BSX) 42.10 59.8 2,200 8.2

Fountain: YCharts

  • PerkinElmer Inc .: PerkinElmer is a provider of technology, services and solutions for the diagnostic, life sciences and other markets. Its products include equipment used for genetic detection and drug discovery, optoelectronics, analytical instruments, and more. The company announced in late June that it would acquire Germany-based SIRION Biotech GmbH, a provider of viral vector technologies used for cell and gene therapies. The acquisition is expected to close during the third quarter of 2021. Terms of the deal were not disclosed.
  • PPD Inc .: PPD operates as a global contract research organization. It is dedicated to drug discovery, clinical development, life cycle management, and laboratory services. Serves pharmaceutical, biotech, medical device, and government organizations.
  • Boston Scientific Corp .: Boston Scientific specializes in minimally invasive medical devices and markets a variety of products used in endoscopy, cardiology, urology, and more.

These are the healthcare stocks that had the highest total returns in the last 12 months.

Health actions with greater dynamism
Price ($) Market Cap ($ B) Total return at 12 months (%)
Moderna Inc. (MRNA) 286.43 115.0 250.1
NovoCure Ltd. (NVCR) 182.57 18.9 196.5
Natera Inc. (NTRA) 113.12 9.9 140.8
Russell 1000 N / A N / A 38.1
Health Care Select Sector SPDR ETF (XLV) N / A N / A 25.0

Fountain: YCharts

  • Moderna Inc .: Moderna is a clinical-stage biotechnology company focused on the discovery and development of messenger RNA vaccines and therapies. It develops mRNA drugs for infectious, immuno-oncological and cardiovascular diseases. Moderna’s COVID-19 vaccine continues to be in high demand globally. In late June, the company announced that the Indian government had issued an emergency use authorization for the import and use of its COVID-19 vaccine. On July 12, Moderna announced that it had reached an agreement to provide Argentina with 20 million doses of the vaccine, starting in the first quarter of 2022.
  • NovoCure Ltd .: NovoCure is a commercial stage oncology company. Research and develop technologies for the treatment of cancer. The headquarters of the company is in Jersey, a dependency of the British Crown.
  • Natera Inc .: Natera is a diagnostic company. Provides preconception and prenatal genetic testing, single gene testing, and similar services. On July 19, the company reported preliminary results for the second quarter of 2021, including anticipated year-over-year revenue growth of approximately 60%. This is the largest year-over-year revenue growth rate in Natera’s history as a publicly traded company. Natera also anticipates record volume growth.

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Mark Holland

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