Healthcare Stocks List

Compare healthcare stocks and their fundamentals, performance, price, and technicals. Use this free stock comparison tool to evaluate companies based on their analyst ratings, book value, debt, dividend, MarketRank, news sentiment, price performance, profitability, and more. Enter up to ten stock symbols separated by a comma or space (ex. BAC, JPM, WFC, C, GS).

Learn more about trading healthcare stocks.

NASDAQ:CRSP NYSE:ABT NYSE:CVS NYSE:JNJ NYSE:LLY NYSE:MRK NYSE:NVS NYSE:PFE NYSE:TDOC NYSE:UNH

Compare Stocks - Price & Volume

Company	Current Price	50-Day Moving Average	52-Week Range	Market Cap	Beta	Avg. Volume	Today's Volume
CRSP CRISPR Therapeutics	$49.65 -0.8%	$56.66	$38.94 ▼ $80.60	$3.94 B	1.62	1.19 million shs	704,200 shs
ABT Abbott Laboratories	$105.31 +0.5%	$107.33	$93.25 ▼ $115.83	$182.75 B	0.67	5.04 million shs	3.48 million shs
CVS CVS Health	$74.87 +1.2%	$71.65	$66.34 ▼ $107.26	$96.16 B	0.63	9.03 million shs	5.98 million shs
JNJ Johnson & Johnson	$173.85 +1.0%	$164.90	$150.11 ▼ $181.04	$451.83 B	0.54	9.09 million shs	45.91 million shs
LLY Eli Lilly and Company	$528.28 +1.3%	$458.58	$296.32 ▼ $538.00	$501.49 B	0.35	3.08 million shs	2.52 million shs
MRK Merck & Co., Inc.	$107.44 +1.8%	$109.22	$84.52 ▼ $119.65	$272.63 B	0.33	7.84 million shs	5.90 million shs
NVS Novartis	$103.59 +0.3%	$100.98	$74.09 ▼ $105.61	$219.57 B	0.54	2.02 million shs	1.11 million shs
PFE Pfizer	$36.04 +0.9%	$37.10	$34.65 ▼ $54.93	$203.48 B	0.6	24.42 million shs	16.61 million shs
TDOC Teladoc Health	$24.06 -1.1%	$25.06	$21.60 ▼ $41.14	$3.97 B	1.1	4.57 million shs	4.02 million shs
UNH UnitedHealth Group	$508.01 +0.9%	$486.54	$445.68 ▼ $558.10	$470.57 B	0.66	3.58 million shs	2.03 million shs

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Price Performance

Company	1-Day Performance	7-Day Performance	30-Day Performance	90-Day Performance	1-Year Performance
CRSP CRISPR Therapeutics	0.00%	-2.57%	-12.76%	-24.72%	-36.88%
ABT Abbott Laboratories	0.00%	-2.17%	-2.43%	-4.12%	-5.53%
CVS CVS Health	0.00%	+2.72%	+4.89%	+8.74%	-29.63%
JNJ Johnson & Johnson	0.00%	+2.85%	+8.74%	+8.96%	+5.17%
LLY Eli Lilly and Company	0.00%	+17.53%	+17.54%	+21.58%	+71.47%
MRK Merck & Co., Inc.	0.00%	+2.32%	+0.09%	-7.67%	+18.04%
NVS Novartis	0.00%	+1.76%	+4.82%	+0.46%	+20.90%
PFE Pfizer	0.00%	+2.91%	-0.77%	-3.01%	-28.08%
TDOC Teladoc Health	0.00%	-7.64%	-2.87%	-2.79%	-40.33%
UNH UnitedHealth Group	0.00%	+1.05%	+5.80%	+4.34%	-6.56%

MarketRank™

Company	Overall Score	Analyst's Opinion	Short Interest Score	Dividend Strength	ESG Score	News and Social Media Sentiment	Company Ownership	Earnings & Valuation
CRSP CRISPR Therapeutics	2.2642 of 5 stars	4.3	2.0	0.0	0.0	3.1	2.5	0.0
ABT Abbott Laboratories	2.7205 of 5 stars	2.3	3.0	4.2	4.5	2.3	2.5	1.9
CVS CVS Health	3.0096 of 5 stars	4.4	3.0	1.7	3.9	3.2	2.5	1.3
JNJ Johnson & Johnson	2.6094 of 5 stars	2.2	3.0	3.3	3.9	3.1	2.5	1.9
LLY Eli Lilly and Company	3.0629 of 5 stars	2.4	5.0	2.5	4.0	3.1	2.5	3.1
MRK Merck & Co., Inc.	3.0281 of 5 stars	2.4	5.0	3.3	4.0	2.1	2.5	3.1
NVS Novartis	1.6836 of 5 stars	1.1	3.0	2.5	0.0	1.4	0.0	2.5
PFE Pfizer	3.3597 of 5 stars	4.2	5.0	5.0	4.6	2.4	1.7	1.3
TDOC Teladoc Health	1.9649 of 5 stars	3.2	1.0	0.0	0.0	3.4	2.5	0.6
UNH UnitedHealth Group	3.2529 of 5 stars	3.5	5.0	4.2	4.0	1.3	2.5	2.5

Analyst Ratings

Company	Consensus Rating Score	Consensus Rating	Consensus Price Target	% Upside from Current Price
CRSP CRISPR Therapeutics	2.53	Moderate Buy	$70.71	42.41% Upside
ABT Abbott Laboratories	2.63	Moderate Buy	$120.82	14.73% Upside
CVS CVS Health	2.88	Moderate Buy	$100.56	34.31% Upside
JNJ Johnson & Johnson	2.33	Hold	$171.80	-1.18% Downside
LLY Eli Lilly and Company	2.85	Moderate Buy	$517.00	-2.14% Downside
MRK Merck & Co., Inc.	2.75	Moderate Buy	$124.74	16.10% Upside
NVS Novartis	2.18	Hold	$82.25	-20.60% Downside
PFE Pfizer	2.31	Hold	$46.35	28.62% Upside
TDOC Teladoc Health	2.38	Hold	$30.81	28.07% Upside
UNH UnitedHealth Group	3.00	Buy	$577.53	13.68% Upside

Current Analyst Ratings

Latest Healthcare Stocks Analyst Ratings

Date	Company	Brokerage	Action	Rating	Price Target
8/11/2023	UNH UnitedHealth Group	Stephens Subscribe to MarketBeat All Access for the recommendation accuracy rating	Reiterated Rating	Overweight ➝ Overweight	$560.00
8/10/2023	CRSP CRISPR Therapeutics	Oppenheimer Subscribe to MarketBeat All Access for the recommendation accuracy rating	Reiterated Rating	Outperform ➝ Outperform	$102.00
8/9/2023	LLY Eli Lilly and Company	Morgan Stanley Subscribe to MarketBeat All Access for the recommendation accuracy rating	Boost Price Target	Overweight ➝ Overweight	$560.00 ➝ $617.00
8/9/2023	LLY Eli Lilly and Company	The Goldman Sachs Group Subscribe to MarketBeat All Access for the recommendation accuracy rating	Boost Price Target	Neutral ➝ Neutral	$385.00 ➝ $470.00
8/9/2023	LLY Eli Lilly and Company	Cantor Fitzgerald Subscribe to MarketBeat All Access for the recommendation accuracy rating	Reiterated Rating	Overweight ➝ Overweight	$550.00
8/9/2023	LLY Eli Lilly and Company	BMO Capital Markets Subscribe to MarketBeat All Access for the recommendation accuracy rating	Boost Price Target	Outperform ➝ Outperform	$565.00 ➝ $633.00
8/9/2023	LLY Eli Lilly and Company	Truist Financial Subscribe to MarketBeat All Access for the recommendation accuracy rating	Boost Price Target	Buy ➝ Buy	$525.00 ➝ $600.00
8/9/2023	LLY Eli Lilly and Company	Barclays Subscribe to MarketBeat All Access for the recommendation accuracy rating	Boost Price Target	Overweight ➝ Overweight	$500.00 ➝ $590.00
8/9/2023	LLY Eli Lilly and Company	JPMorgan Chase & Co. Subscribe to MarketBeat All Access for the recommendation accuracy rating	Boost Price Target	Overweight ➝ Overweight	$510.00 ➝ $600.00
8/9/2023	LLY Eli Lilly and Company	Credit Suisse Group Subscribe to MarketBeat All Access for the recommendation accuracy rating	Boost Price Target	Outperform ➝ Outperform	$490.00 ➝ $580.00
8/9/2023	LLY Eli Lilly and Company	Bank of America Subscribe to MarketBeat All Access for the recommendation accuracy rating	Boost Price Target		$500.00 ➝ $600.00

(Data available from 8/14/2020 forward. View 10+ years of historical ratings with our analyst ratings screener.)

Sales & Book Value

Company	Annual Revenue	Price/Sales	Cashflow	Price/Cash	Book Value	Price/Book
CRSP CRISPR Therapeutics	$1.20M	3,285.59	N/A	N/A	$22.87 per share	2.17
ABT Abbott Laboratories	$43.65B	4.19	$7.30 per share	14.42	$21.55 per share	4.89
CVS CVS Health	$322.47B	0.30	$11.98 per share	6.25	$56.84 per share	1.32
JNJ Johnson & Johnson	$94.94B	4.76	$13.01 per share	13.36	$29.40 per share	5.91
LLY Eli Lilly and Company	$28.54B	17.57	$9.17 per share	57.64	$11.74 per share	45.00
MRK Merck & Co., Inc.	$59.28B	4.60	$9.04 per share	11.89	$15.27 per share	7.04
NVS Novartis	$50.55B	4.34	$6.30 per share	16.44	$24.50 per share	4.23
PFE Pfizer	$100.33B	2.03	$7.62 per share	4.73	$17.59 per share	2.05
TDOC Teladoc Health	$2.41B	1.65	$82.97 per share	0.29	$13.91 per share	1.73
UNH UnitedHealth Group	$324.16B	1.45	$26.20 per share	19.39	$94.32 per share	5.39

Profitability & Earnings

Company	Net Income	EPS	Trailing P/E Ratio	Forward P/E Ratio	P/E Growth	Net Margins	Return on Equity (ROE)	Return on Assets (ROA)	Next Earnings Date
CRSP CRISPR Therapeutics	-$650.17M	-$5.30	N/A	N/A	N/A	-240.84%	-21.85%	-18.13%	11/7/2023 (Estimated)
ABT Abbott Laboratories	$6.93B	$2.93	35.94	22.89	4.70	12.83%	20.50%	10.27%	10/18/2023 (Estimated)
CVS CVS Health	$4.15B	$2.28	32.84	8.56	1.36	0.86%	15.43%	4.66%	11/1/2023 (Estimated)
JNJ Johnson & Johnson	$17.94B	$4.94	35.19	15.40	2.92	13.35%	36.72%	14.62%	10/17/2023 (Estimated)
LLY Eli Lilly and Company	$6.24B	$7.19	73.47	40.57	2.07	22.01%	65.00%	13.76%	11/7/2023 (Estimated)
MRK Merck & Co., Inc.	$14.52B	$1.22	88.07	12.58	4.23	5.34%	16.29%	6.70%	10/26/2023 (Estimated)
NVS Novartis	$6.96B	$3.59	28.86	13.85	1.65	14.76%	25.12%	12.28%	10/24/2023 (Estimated)
PFE Pfizer	$31.37B	$3.76	9.59	11.16	1.21	27.55%	28.36%	13.66%	11/7/2023 (Estimated)
TDOC Teladoc Health	-$13.66B	-$24.76	N/A	N/A	N/A	-158.76%	-7.32%	-4.50%	10/25/2023 (Estimated)
UNH UnitedHealth Group	$20.12B	$22.35	22.73	18.18	1.49	6.06%	26.72%	8.45%	10/13/2023 (Estimated)

Latest Healthcare Stocks Earnings

Date	Quarter	Company	Consensus Estimate	Reported EPS	Beat/Miss	Gap EPS	Revenue Estimate	Actual Revenue
8/8/2023	6/30/2023	LLY Eli Lilly and Company	$1.98	$2.11	+$0.13	$2.27	$7.58 billion	$8.31 billion
8/7/2023	Q2 2023	CRSP CRISPR Therapeutics	-$2.13	-$0.98	+$1.15	-$0.98	$1.80 million	$70.00 million
8/2/2023	6/30/2023	CVS CVS Health	$2.12	$2.21	+$0.09	$2.94	$86.41 billion	$88.92 billion
8/1/2023	6/30/2023	MRK Merck & Co., Inc.	-$2.18	-$2.06	+$0.12	-$1.77	$14.44 billion	$15.04 billion
8/1/2023	6/30/2023	PFE Pfizer	$0.57	$0.67	+$0.10	$0.93	$13.36 billion	$12.73 billion
7/25/2023	Q2 2023	TDOC Teladoc Health	-$0.44	-$0.40	+$0.04	-$0.40	$649.20 million	$652.41 million
7/20/2023	Q2 23	ABT Abbott Laboratories	$1.05	$1.08	+$0.03	$1.38	$9.71 billion	$9.98 billion
7/20/2023	6/30/2023	JNJ Johnson & Johnson	$2.62	$2.80	+$0.18	$3.64	$24.63 billion	$25.53 billion
7/19/2023	6/30/2023	NVS Novartis	$1.68	$1.83	+$0.15	$2.55	$6.32 million	$13.62 billion
7/14/2023	Q2 2023	UNH UnitedHealth Group	$5.92	$6.14	+$0.22	$6.46	$90.97 billion	$92.90 billion

Dividends

Company	Annual Payout	Dividend Yield	3-Year Dividend Growth	Payout Ratio	Years of Consecutive Growth
CRSP CRISPR Therapeutics	N/A	N/A	N/A	N/A	N/A
ABT Abbott Laboratories	$2.04	1.94%	+13.30%	69.62%	51 Years
CVS CVS Health	$2.42	3.23%	+4.08%	106.14%	1 Years
JNJ Johnson & Johnson	$4.76	2.74%	+5.87%	96.36%	62 Years
LLY Eli Lilly and Company	$4.52	0.86%	+15.02%	62.87%	9 Years
MRK Merck & Co., Inc.	$2.92	2.72%	+7.40%	239.34%	12 Years
NVS Novartis	$2.27	2.19%	N/A	63.23%	4 Years
PFE Pfizer	$1.64	4.55%	+3.31%	43.62%	12 Years
TDOC Teladoc Health	N/A	N/A	N/A	N/A	N/A
UNH UnitedHealth Group	$7.52	1.48%	+15.63%	33.65%	14 Years

Latest Healthcare Stocks Dividends

Announcement	Company	Period	Amount	Yield	Ex-Dividend Date	Record Date	Payable Date
7/25/2023	MRK Merck & Co., Inc.	quarterly	$0.73	2.7%	9/14/2023	9/15/2023	10/6/2023
6/26/2023	LLY Eli Lilly and Company	quarterly	$1.13	1%	8/14/2023	8/15/2023	9/8/2023
7/20/2023	JNJ Johnson & Johnson	Quarterly	$1.19	2.83%	8/25/2023	8/28/2023	9/7/2023
6/22/2023	PFE Pfizer	quarterly	$0.41	4.22%	7/27/2023	7/28/2023	9/5/2023
6/9/2023	ABT Abbott Laboratories	quarterly	$0.51	2.01%	7/13/2023	7/14/2023	8/15/2023
6/26/2023	LLY Eli Lilly and Company	quarterly	$1.13	1%		9/8/2023	8/15/2023
7/7/2023	CVS CVS Health	quarterly	$0.6050	3.47%	7/20/2023	7/21/2023	8/1/2023
5/23/2023	MRK Merck & Co., Inc.	quarterly	$0.73	2.6%	6/14/2023	6/15/2023	7/10/2023
6/7/2023	UNH UnitedHealth Group	quarterly	$1.88	1.54%	6/15/2023	6/19/2023	6/27/2023

(Data available from 1/1/2013 forward)

Debt

Company	Debt-to-Equity Ratio	Current Ratio	Quick Ratio
CRSP CRISPR Therapeutics	N/A	14.00	13.00
ABT Abbott Laboratories	0.39	1.64	1.16
CVS CVS Health	0.84	0.86	0.64
JNJ Johnson & Johnson	0.44	1.12	0.88
LLY Eli Lilly and Company	1.63	1.13	1.02
MRK Merck & Co., Inc.	0.88	1.28	1.19
NVS Novartis	0.35	1.05	0.79
PFE Pfizer	0.62	2.12	1.11
TDOC Teladoc Health	0.67	3.45	3.36
UNH UnitedHealth Group	0.68	0.80	0.80

Ownership

Institutional Ownership

Company	Institutional Ownership
CRSP CRISPR Therapeutics	70.38%
ABT Abbott Laboratories	73.08%
CVS CVS Health	76.96%
JNJ Johnson & Johnson	67.57%
LLY Eli Lilly and Company	87.25%
MRK Merck & Co., Inc.	76.60%
NVS Novartis	8.07%
PFE Pfizer	67.80%
TDOC Teladoc Health	81.81%
UNH UnitedHealth Group	92.61%

Insider Ownership

Company	Insider Ownership
CRSP CRISPR Therapeutics	4.10%
ABT Abbott Laboratories	1.10%
CVS CVS Health	0.25%
JNJ Johnson & Johnson	0.20%
LLY Eli Lilly and Company	0.13%
MRK Merck & Co., Inc.	0.20%
NVS Novartis	0.01%
PFE Pfizer	0.05%
TDOC Teladoc Health	1.63%
UNH UnitedHealth Group	0.35%

Miscellaneous

Company	Employees	Shares Outstanding	Free Float	Optionable
CRSP CRISPR Therapeutics	473	79.41 million	76.16 million	Optionable
ABT Abbott Laboratories	115,000	1.74 billion	1.72 billion	Optionable
CVS CVS Health	300,000	1.28 billion	1.28 billion	Optionable
JNJ Johnson & Johnson	155,800	2.60 billion	2.59 billion	Optionable
LLY Eli Lilly and Company	39,000	949.29 million	948.06 million	Optionable
MRK Merck & Co., Inc.	69,000	2.54 billion	2.53 billion	Optionable
NVS Novartis	101,703	2.12 billion	2.12 billion	Optionable
PFE Pfizer	83,000	5.65 billion	5.64 billion	Optionable
TDOC Teladoc Health	5,600	164.95 million	162.26 million	Optionable
UNH UnitedHealth Group	400,000	926.30 million	923.06 million	Optionable

Healthcare Stocks Headlines

Source	Headline
	How This Simple “Dividend Magnet” Strategy Reveals 500%+ Dividend Growers marketbeat.com - August 13 at 10:09 PM
	J.P. Morgan Reaffirms Their Buy Rating on UnitedHealth (UNH) markets.businessinsider.com - August 12 at 10:15 AM
	Gouws Capital LLC Increases Stock Holdings in UnitedHealth Group Incorporated (NYSE:UNH) marketbeat.com - August 11 at 9:59 PM
	Stephens & Co. Reiterates Unitedhealth Group (UNH) Overweight Recommendation msn.com - August 11 at 7:13 PM
	What 20 Analyst Ratings Have To Say About UnitedHealth Group markets.businessinsider.com - August 11 at 7:13 PM
	Stephens Reiterates Overweight Rating for UnitedHealth Group (NYSE:UNH) marketbeat.com - August 11 at 11:28 AM
	UK antitrust watchdog provisionally clears $1.58 bln UnitedHealth-EMIS deal reuters.com - August 11 at 4:02 AM
	UPDATE 1-UK antitrust watchdog provisionally clears $1.58 bln UnitedHealth-EMIS deal finance.yahoo.com - August 11 at 4:02 AM
	UnitedHealth, Humana, ChampionX And This Stock Up 42% YTD: CNBC's 'Final Trades' benzinga.com - August 10 at 11:02 PM
	DOJ requests more info on Amedisys, UnitedHealth merger msn.com - August 10 at 11:02 PM
	Will UnitedHealth Group Be a Trillion-Dollar Stock by 2030? theglobeandmail.com - August 10 at 11:02 PM
	UNH (UnitedHealth Group Incorporated) may reap gains as insiders became active recently knoxdaily.com - August 9 at 10:41 AM
	UnitedHealth Group Unusual Options Activity For August 08 benzinga.com - August 8 at 7:39 PM
	Optum and Capella University Announce New Nurse Practitioner Program To Address the Growing National Need for Skilled Clinicians finance.yahoo.com - August 8 at 2:39 PM
	Nuwellis Announces Plan for CFO Transition finance.yahoo.com - August 8 at 9:39 AM
	Sigma Planning Corp Decreases Stock Holdings in UnitedHealth Group Incorporated (NYSE:UNH) marketbeat.com - August 4 at 6:52 PM
	Department of Labor sues UnitedHealth unit over denied claims bizjournals.com - August 3 at 10:35 AM
	Humana Profit Beats Forecasts as its Medical Costs Were Less Than Expected finance.yahoo.com - August 3 at 10:35 AM
	Those Hip Surgeries Are Now Mostly Priced Into Insurers’ Stocks finance.yahoo.com - August 3 at 10:35 AM
	UPDATE 1-Cigna results top estimates on strong demand for commercial insurance plans finance.yahoo.com - August 3 at 10:35 AM
	UnitedHealth Group Incorporated [UNH] Insider WITTY ANDREW sells 4,000 Shares knoxdaily.com - August 2 at 8:54 AM
	UnitedHealthcare Community Plan of Ohio Awarded NCQA Health Equity Accreditation finance.yahoo.com - August 2 at 8:54 AM
	UnitedHealth Sued by US Labor Department Over ER Claims Denials bloomberg.com - August 1 at 5:53 PM
	UnitedHealth: Headwinds For Healthcare Abating seekingalpha.com - July 31 at 11:43 AM

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Company Descriptions

CRISPR Therapeutics

NASDAQ:CRSP

CRISPR Therapeutics is a gene-editing company focused on developing transformative gene-based medicines for serious diseases using its proprietary CRISPR/Cas9 platform. CRISPR/Cas9 is a revolutionary gene-editing technology that allows for precise, directed changes to genomic DNA. CRISPR Therapeutics has established a portfolio of therapeutic programs across a broad range of disease areas including hemoglobinopathies, oncology, regenerative medicine and rare diseases. To accelerate and expand its efforts, CRISPR Therapeutics has established strategic collaborations with companies including Bayer, Vertex Pharmaceuticals and ViaCyte, Inc. CRISPR Therapeutics AG is headquartered in Zug, Switzerland, with its wholly-owned U.S. subsidiary, CRISPR Therapeutics, Inc., and R&D operations based in Cambridge, Massachusetts, and business offices in San Francisco, California and London, United Kingdom. For more information, please visit www.crisprtx.com.

Abbott Laboratories

NYSE:ABT

Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The Established Pharmaceutical Products segment provides generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, Ménière's disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. The Diagnostic Products segment offers laboratory systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion; molecular diagnostics systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, as well as detect and measure infectious agents; point of care systems; cartridges for testing blood; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; drug and alcohol test, and remote patient monitoring and consumer self-test systems; and informatics and automation solutions for use in laboratories. The Nutritional Products segment provides pediatric and adult nutritional products. The Medical Devices segment offers rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; and diabetes care products, as well as neuromodulation devices for the management of chronic pain and movement disorders. Abbott Laboratories was founded in 1888 and is based in North Chicago, Illinois.

CVS Health

NYSE:CVS

CVS Health Corporation provides health services in the United States. It operates through Health Care Benefits, Pharmacy Services, and Retail/LTC segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services. It serves employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups, and expatriates. The Pharmacy Services segment offers pharmacy benefit management solutions, including plan design and administration, formulary management, retail pharmacy network management, mail order pharmacy, specialty pharmacy and infusion, clinical, and disease and medical spend management services. It serves employers, insurance companies, unions, government employee groups, health plans, prescription drug plans, Medicaid managed care plans, plans offered on public health insurance and private health insurance exchanges, other sponsors of health benefit plans, and individuals. This segment operates retail specialty pharmacy stores; and specialty mail-order, mail-order dispensing, and compounding pharmacies, as well as branches for infusion and enteral nutrition services. The Retail/LTC segment sells prescription and over-the-counter drugs, consumer health and beauty products, and personal care products; and provides health care services through its MinuteClinic walk-in medical clinics. This segment also distributes prescription drugs; and provides related pharmacy consulting and other ancillary services to care facilities and other care settings. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. CVS Health Corporation was incorporated in 1996 and is headquartered in Woonsocket, Rhode Island.

Johnson & Johnson

NYSE:JNJ

Johnson & Johnson, together with its subsidiaries, researches, develops, manufactures, and sells various products in the healthcare field worldwide. The company's Consumer Health segment provides skin health/beauty products under the AVEENO, CLEAN & CLEAR, DR. CI:LABO, NEUTROGENA, and OGX brands; baby care products under the JOHNSON'S and AVEENO Baby brands; oral care products under the LISTERINE brand; TYLENOL acetaminophen products; SUDAFED cold, flu, and allergy products; BENADRYL and ZYRTEC allergy products; MOTRIN IB ibuprofen products; NICORETTE smoking cessation products; and PEPCID acid reflux products. This segment also offers STAYFREE and CAREFREE sanitary pads; o.b. tampons; adhesive bandages under the BAND-AID brand; and first aid products under the NEOSPORIN brand. It serves general public, retail outlets, and distributors. The company's Pharmaceutical segment provides products for rheumatoid arthritis, psoriatic arthritis, inflammatory bowel disease, and psoriasis; HIV/AIDS infectious diseases; mood disorders, neurodegenerative disorders, and schizophrenia; prostate cancer, hematologic malignancies, lung cancer, and bladder cancer; thrombosis, diabetes, and macular degeneration; and pulmonary arterial hypertension. This segment serves retailers, wholesalers, distributors, hospitals, and healthcare professionals directly for prescription use. Its MedTech segment offers electrophysiology products to treat cardiovascular diseases; neurovascular care products to treat hemorrhagic and ischemic stroke; orthopaedics products in support of hips, knees, trauma, spine, sports, and other; advanced and general surgery solutions that focus on breast aesthetics, ear, nose, and throat procedures; and contact lenses and ophthalmic technologies related to cataract and laser refractive surgery under the ACUVUE brand. This segment serves wholesalers, hospitals, and retailers. Johnson & Johnson was founded in 1886 and is based in New Brunswick, New Jersey.

Eli Lilly and Company

NYSE:LLY

Eli Lilly and Company discovers, develops, and markets human pharmaceuticals worldwide. It offers Basaglar, Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, insulin lispro protamine, insulin lispro mix 75/25, Humulin, Humulin 70/30, Humulin N, Humulin R, and Humulin U-500 for diabetes; and Jardiance, Trajenta, and Trulicity for type 2 diabetes. The company provides Alimta for non-small cell lung cancer (NSCLC) and malignant pleural mesothelioma; Cyramza for metastatic gastric cancer, gastro-esophageal junction adenocarcinoma, metastatic NSCLC, metastatic colorectal cancer, and hepatocellular carcinoma; Erbitux for colorectal cancers, and various head and neck cancers; Retevmo for metastatic NSCLC, medullary thyroid cancer, and thyroid cancer; Tyvyt for relapsed or refractory classic Hodgkin's lymph and non-squamous NSCLC; and Verzenio for HR+, HER2- metastatic breast cancer, node positive, and early breast cancer. It offers Olumiant for rheumatoid arthritis; and Taltz for plaque psoriasis, psoriatic arthritis, ankylosing spondylitis, and non-radiographic axial spondylarthritis. The company offers Cymbalta for depressive disorder, diabetic peripheral neuropathic pain, generalized anxiety disorder, fibromyalgia, and chronic musculoskeletal pain; Emgality for migraine prevention and episodic cluster headache; and Zyprexa for schizophrenia, bipolar I disorder, and bipolar maintenance. Its Bamlanivimab and etesevimab, and Bebtelovimab for COVID-19; Cialis for erectile dysfunction and benign prostatic hyperplasia; and Forteo for osteoporosis. The company has collaborations with Incyte Corporation; Boehringer Ingelheim Pharmaceuticals, Inc.; AbCellera Biologics Inc.; Junshi Biosciences; Regor Therapeutics Group; Lycia Therapeutics, Inc.; Kumquat Biosciences Inc.; Entos Pharmaceuticals Inc.; and Foghorn Therapeutics Inc. Eli Lilly and Company was founded in 1876 and is headquartered in Indianapolis, Indiana.

Merck & Co., Inc.

NYSE:MRK

Merck & Co., Inc. operates as a healthcare company worldwide. It operates through two segments, Pharmaceutical and Animal Health. The Pharmaceutical segment offers human health pharmaceutical products in the areas of oncology, hospital acute care, immunology, neuroscience, virology, cardiovascular, and diabetes, as well as vaccine products, such as preventive pediatric, adolescent, and adult vaccines. The Animal Health segment discovers, develops, manufactures, and markets veterinary pharmaceuticals, vaccines, and health management solutions and services, as well as digitally connected identification, traceability, and monitoring products. The company serves drug wholesalers and retailers, hospitals, and government agencies; managed health care providers, such as health maintenance organizations, pharmacy benefit managers, and other institutions; and physicians and physician distributors, veterinarians, and animal producers. It has collaborations with AstraZeneca PLC; Bayer AG; Eisai Co., Ltd.; Ridgeback Biotherapeutics LP; and Gilead Sciences, Inc. to jointly develop and commercialize long-acting treatments in HIV. Merck & Co., Inc. was founded in 1891 and is headquartered in Rahway, New Jersey.

Novartis

NYSE:NVS

Novartis AG researches, develops, manufactures, and markets healthcare products in Switzerland and internationally. The company operates through two segments: Innovative Medicines and Sandoz. The Innovative Medicines segment offers prescription medicines for patients and physicians. It also provides cardiovascular, ophthalmology, neuroscience, immunology, hematology, and solid tumor products. The Sandoz segment develops, manufactures, and markets finished dosage forms of small molecule pharmaceuticals to third parties. It also provides protein- or other biotechnology-based products, including biosimilars; and biotechnology manufacturing services; and anti-infectives, such as active pharmaceutical ingredients and intermediates primarily antibiotics. Novartis AG has a license and collaboration agreement with Alnylam Pharmaceuticals to develop, manufacture, and commercialize inclisiran, a therapy to reduce LDL cholesterol. Novartis AG was incorporated in 1996 and is headquartered in Basel, Switzerland.

Pfizer

NYSE:PFE

Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic, migraine, and women's health under the Eliquis, Nurtec ODT/Vydura, and the Premarin family brands; infectious diseases with unmet medical needs under the Prevnar family, Nimenrix, FSME/IMMUN-TicoVac, and Trumenba brands; and COVID-19 prevention and treatment, and potential future mRNA and antiviral products under the Comirnaty and Paxlovid brands. The company also provides medicines and vaccines in various therapeutic areas, such as biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands; amyloidosis, hemophilia, endocrine diseases, and sickle cell disease under the Vyndaqel family, Oxbryta, BeneFIX, and Genotropin brands; sterile injectable and anti-infective medicines under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, and Panzyga brands; and biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Inlyta, Retacrit, Lorbrena, and Braftovi brands. In addition, the company is involved in the contract manufacturing business. It serves wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, individual provider offices, retail pharmacies, and integrated delivery systems, as well as disease control and prevention centers. The company has collaboration agreements with Bristol-Myers Squibb Company; Astellas Pharma US, Inc.; Myovant Sciences Ltd.; Merck KGaA; Valneva SE; BioNTech SE; and Arvinas, Inc., as well as strategic partnership with CSPC Pharmaceutical Group Limited to launch a local brand of the COVID-19 oral therapeutic treatment Nirmatrelvir/Ritonavir in China, and a collaboration with Carrick Therapeutics Limited. Pfizer Inc. was founded in 1849 and is headquartered in New York, New York.

Teladoc Health

NYSE:TDOC

Teladoc Health, Inc. provides virtual healthcare services in the United States and internationally. The company operates through two segments, Integrated Care and BetterHelp segments. The Integrated Care segment offers virtual medical services, including general medical, expert medical, specialty medical, chronic condition management, and mental health, as well as enabling technologies and enterprise telehealth solutions for hospitals and health systems. The BetterHelp segment operates a mental health platform that provides online counseling and therapy services through website, mobile applications, phones, and text-based interactions by its that licensed clinicians. The company offers its products and services under the Teladoc, Livongo, and BetterHelp brands. It serves employers, health plans, hospitals and health systems, and insurance and financial services companies, as well as individual members. The company was formerly known as Teladoc, Inc. and changed its name to Teladoc Health, Inc. in August 2018. Teladoc Health, Inc. was incorporated in 2002 and is headquartered in Purchase, New York.

UnitedHealth Group

NYSE:UNH

UnitedHealth Group Incorporated operates as a diversified health care company in the United States. It operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, and individuals; health care coverage, and health and well-being services to individuals age 50 and older addressing their needs; Medicaid plans, children's health insurance and health care programs; and health and dental benefits, and hospital and clinical services, as well as health care benefits products and services to state programs caring for the economically disadvantaged, medically underserved, and those without the benefit of employer-funded health care coverage. The OptumHealth segment provides care delivery, care management, wellness and consumer engagement, and health financial services for consumers, care delivery systems, providers, employers, payers, and public-sector entities. The OptumInsight segment offers software and information products, advisory consulting arrangements, and managed services outsourcing contracts to hospital systems, physicians, health plans, governments, life sciences companies, and other organizations. The OptumRx segment provides pharmacy care services and programs, including retail network contracting, home delivery, specialty and community health pharmacy services, and purchasing and clinical capabilities, as well as develops programs in the areas of step therapy, formulary management, drug adherence, and disease/drug therapy management. UnitedHealth Group Incorporated was incorporated in 1977 and is based in Minnetonka, Minnesota.

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How to Invest in the Healthcare Sector

Last updated on Fri., July 28, 2023 | Sarah Horvath

Key Points

The healthcare sector represents both a consistent consumer need and a source of risk for investors.
Stocks, ETFs, mutual funds and REITs all represent the different sectors of the healthcare sphere.
Consider all options, which can provide a wide range of choices to manage risk level and dividend returns.

As the world economy recovers from the COVID-19 pandemic, more and more investors are interested in learning how to invest in the healthcare sector. While there are multiple ways to invest in the U.S. healthcare industry, buying stocks or funds associated with these companies is the easiest method. As many major healthcare providers operate on exchanges like the New York Stock Exchange or the NASDAQ, getting started as a healthcare investor can be as simple as placing a "buy" order.

There are multiple ways to invest in the healthcare industry, and the best way to invest in healthcare might vary depending on your goals. Read on to learn more about the healthcare industry and how it operates, explore some of the top-rated biotech stocks on MarketBeat and expand your portfolio with medical assets.

Overview of the Healthcare Sector

The healthcare industry in the United States is one of the largest and most complex in the world. The healthcare sector involves a wide web of pharmaceutical companies, healthcare providers and regulators working together to ensure that all treatments are safe and effective. The industry is characterized by high costs, rapid technological advancements and ongoing regulatory changes, all of which may concern investors.

Investors play a significant role in the healthcare industry, as they provide funding for the research and development of new treatments and the acquisition of companies and technologies. Venture capitalists, private equity firms and institutional investors are all active in the healthcare space, seeking to invest in companies with innovative technologies and promising growth prospects. Drug patents, in particular, play a major role in investment opportunities within the sector, with many of the best pharmaceutical stocks in 2023 and the best healthcare stocks to buy right now showcasing growth stock benefits.

While the healthcare industry offers an ever-present market and wide range of opportunities, it also comes with unique risks. Healthcare investing can be risky due to the high research and development costs, the lengthy regulatory approval process and the potential for unforeseen complications in clinical trials. For example, a pharmaceutical company might spend millions of dollars researching a new drug only to have it fail FDA trials. This failure can result in drastic drops in share price and investor loss.

how to invest in healthcare sector

Why Invest in the Healthcare Sector?

The primary reason investors are attracted to the healthcare industry is everlasting demand. The need for medical care drives the healthcare sector, which should increase as the population ages and chronic diseases become more prevalent. As such, the sector is relatively insulated from economic downturns and may offer more consistent and stable long-term growth.

Healthcare companies are constantly developing new treatments, drugs and medical technologies, which can lead to significant breakthroughs and create opportunities for investors to profit, such as in the case of telemedicine stocks. Additionally, many healthcare companies receive government funding for research and development, which can offset some risks associated with investing in new and untested products.

Ways to Invest in the Healthcare Sector

The United States healthcare industry is vast and includes multiple sectors investors can support. The following are some of the major components of the healthcare sector you should be familiar with before investing in the healthcare sector.

Pharmaceuticals

Pharmaceutical companies research, develop, manufacture and market drugs and medications. Most pharmaceutical companies invest heavily in the discovery and development of new medicines, as well as the production and distribution of existing drugs.

Developing a new drug typically involves several stages, including basic research, preclinical testing, clinical trials and regulatory approval. Pharmaceutical companies play a key role in the healthcare sector by funding these processes to bring new drugs to market and ensure their success.

Biotech

Biotech, or biotechnology companies, use biological and chemical processes to develop products and technologies that improve human health. These companies use living organisms or their derivatives to create new technologies and therapies that can help solve complex problems and meet the needs of society.

Some examples of products produced by biotech firms include genetically modified organisms (GMOs) and immunotherapies for cancer patients. Like pharmaceutical companies, biotech companies must undergo a strict regulatory process before seeing products approved and on the open market. This regulatory approval system makes it especially important for investors to focus on histories of success and viabilities of upcoming drugs when learning to invest in healthcare stocks.

Medical Equipment

Medical equipment companies design, manufacture and distribute a wide range of medical devices and equipment used by healthcare providers to diagnose, treat and monitor patients. These companies produce everything from simple instruments, such as thermometers and blood pressure monitors, to complex imaging equipment like MRI machines and ultrasound scanners. They also often work with hospitals and healthcare providers to develop new diagnostic and movement assistance devices.

Sales and Distribution

Medical sales and distribution companies act as intermediaries between manufacturers of medical products and healthcare providers, facilitating the supply chain for medical products. Medical sales and distribution companies play a crucial role in the healthcare industry by ensuring that medical products and equipment are readily available to healthcare providers when needed. They work closely with manufacturers to understand product specifications and regulatory requirements and then market and distribute these products to healthcare providers.

Insurance

Health insurance companies cover individuals and groups to help pay for healthcare expenses. These companies collect premiums from policyholders, covering the costs of medical services and treatments. Health insurance companies are important in the United States due to the country's high consumer costs for medical care series.

Healthcare Facilities

In addition to insurance companies and the companies that provide and produce medical services, you can also invest in the physical spaces that healthcare providers use to distribute services. Commercial real estate investment trusts (REITs) specialize in managing and financing real estate operations on behalf of commercial operations (like hospitals). If you're interested in learning how to invest in a hospital rather than its operations, a REIT might be the best choice.

How to Invest in the Healthcare Sector

Investing in the healthcare sector usually involves buying and selling shares of stock issued by healthcare companies. The specific process you'll go through when investing varies depending on the type of asset you're buying, but you can expect the following basic steps.

Step 1: Open a brokerage account.

A brokerage account is an investment account that you'll use to communicate with your broker to buy and sell stocks, funds and other assets. Most items on MarketBeat's best medical stocks list trade on major exchanges, so you can start buying and selling immediately if you already have a brokerage account. However, if you're interested in investing in a healthcare mutual fund, you may need to use an IRA or specialized retirement account.

If you still need a brokerage account, open one before moving forward. Some popular examples of online brokers include Robinhood, E*TRADE and Charles Schwab. You must also link and confirm a bank account to fund your account before placing an order.

Step 2: Place a "buy" order.

Locate the asset you want to buy by searching for its ticker. For example, if you want to know how to invest in healthcare stocks, you place a buy order, specifying how many shares you'd like to purchase and how much you'd like to spend. Place a limit order if you want to buy the asset at a specific price. If the speed of execution is more important to you than the individual price paid per share, you may prefer a market order.

Step 3: Monitor your investment.

The healthcare industry constantly changes as innovations change how we treat common diseases and ailments. Monitor your investment over time and track how its value is changing. If you're employing a short-term trading strategy, you may also want to place a stop-loss order to limit your financial loss in case your investment dips in value.

Types of Healthcare Investments to Consider

Multiple types of assets can provide you with exposure to the healthcare sector. Consider adding a mix of the following investment types to your portfolio for enhanced diversification.

Healthcare Stocks

The healthcare industry makes up a wide web of publicly traded companies in both the development and service sides of the business. Healthcare stocks can offer investors exposure to the growing demand for healthcare services and products and the potential for strong financial performance driven by innovation, regulatory approvals and demographic trends. However, healthcare stocks can also be subject to regulatory risks, clinical trial failures and other industry-specific challenges that can impact their performance.

Examples of healthcare stocks include Johnson & Johnson (NYSE: JNJ) and UnitedHealth Group Inc. (NYSE: UNH). Browse a list of the best pharmaceutical stocks on MarketBeat, which you can use to complement both general portfolios and healthcare-based investor profiles.

Mutual Funds

A healthcare mutual fund is a type of investment fund that pools money from investors to invest in various healthcare-related stocks or other securities. A professional fund manager manages the fund and seeks to provide a return for the investors by investing in healthcare companies that they believe have the potential for growth and financial performance. Some examples of healthcare mutual funds include the Vanguard Health Care Fund (VGHCX) and the Fidelity Select Medical Technology and Devices Portfolio (FSMEX).

ETFs

An exchange-traded fund (ETF) is an investment fund that allows investors to buy ownership in a pool of themed stocks selected by fund managers. Healthcare ETFs consist of assets within the healthcare industry, including stocks, REITs and additional investments. These funds provide an instant level of diversification within the healthcare industry and trade like normal shares of stock throughout the day. Examples of healthcare ETFs include the iShares Global Healthcare ETF (NYSE: IXJ) and the Vanguard Health Care ETF (NYSE: VHT).

Learn more about the five best healthcare sector ETFs.

REITs

REITs trade on major exchanges using the same processes as stocks and ETFs. Companies structured as REITs must distribute at least 90% of their taxable income back to shareholders in the form of dividends. This clause can make healthcare REITs ideal for income investors, with multiple REITs included in MarketBeat's list of healthcare stocks with dividend increases and healthcare dividend stocks recommendations.

Pros and Cons of Investing in Healthcare

While the healthcare industry provides products and services in consistent demand, regulations and failed trials may increase the risk taken on by investors in this sector.

Pros

There are several benefits to investing in healthcare that you may want to consider, including the following:

Growing demand: The healthcare industry has a growing demand for products and services due to demographic trends, including an aging population of baby boomers and rising levels of chronic illness (like heart disease and obesity-related conditions).
Innovation potential: Healthcare companies invest heavily in research and development, and medical technology or treatment breakthroughs can lead to significant financial gains. The sector has growth stock opportunities, which may appeal to active investors.
Resilience: Healthcare is usually considered a defensive industry that can be more resilient to economic downturns or recessions.

Cons

What are the potential downsides? Take a look:

Clinical trial failures: Healthcare companies often invest significant amounts of money in clinical trials, which can lead to significant financial losses for both companies and investors.
Regulatory risks: Healthcare companies are subject to strict regulatory oversight, and changes in regulations or unexpected regulatory decisions can impact each stock's financial performance.

Future of Healthcare Investing

It might be worth considering learning how to invest in healthcare industry into the future. An aging population should fuel increased demand for healthcare services in 2023 and beyond. In particular, many healthcare companies are researching biometric therapies and personalized treatments customized using the patient's unique genetic makeup. While these companies may present investor opportunities, growing regulatory concern amid rising healthcare pricing may lead to legal and political shifts that can influence the pricing of healthcare assets.

Consider Investing in the Healthcare Sector

Investors considering entering the healthcare market should know that despite the constant demand for healthcare services, these assets may be more volatile than other consumer staples. Many healthcare companies devote large percentages of their budgets to research and development, which leads to sharp losses if trials are unsuccessful. If you decide to invest in the healthcare industry, diversify across multiple portions of the industry using a variety of stocks, an ETF investment or the best health mutual funds on the market.

Still wondering about how to invest in healthcare? Consider investing in cancer stocks.

FAQs

Let’s look at some lingering questions you may have about healthcare investing.

Is the healthcare sector a good investment?

Healthcare is an essential industry that will continue to grow as the global population increases and ages. Additionally, advances in medical technology and increasing demand for healthcare services may drive growth in the sector, making it an appealing choice for investors. However, risks associated with political changes and regulatory approval may lead to losses.

How can I invest in the medical field?

There are various ways to invest in the medical field, including buying shares of stocks directly or through an ETF. If you're investing through a retirement account, you may have the opportunity to pool money with other investors using a mutual fund. A total market index fund or S&P 500 index fund can also provide exposure to some of the largest healthcare companies and investing in healthcare sector.

What is the best healthcare ETF?

The best ETF for your portfolio will vary depending on your unique risk tolerance and exposure preferences. The largest healthcare ETFs include the Health Care Select Sector SPDR Fund (NYSE: XLV) and the iShares U.S. Healthcare ETF (NYSE: IYH).

About Sarah Horvath

Contributing Author: Retail, Healthcare, and Real Estate stocks

Sarah Horvath is an accomplished financial writer focused on the topics of investing, insurance, and mortgage options. You can find her work on major finance outlets, including Forbes, Benzinga, and through companies like Nationwide and Vanguard. She prides herself on making complicated financial topics easier to understand. When not writing, she spends her time with her fiancé and beloved parrot.

Contact Sarah Horvath via email at horvath.sarah17@gmail.com.

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