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Investment Opportunities

Best Healthcare Stocks to Buy in 2021

Healthcare stocks are a great investment right now. Even though prices ramped up quite a bit from COVID, there’s been a small correction. This creates better buying opportunities and long-term, it looks like healthcare will continue a climbing higher.

According to the Bureau of Labor Statistics

Employment in healthcare occupations is projected to grow 15 percent from 2019 to 2029, much faster than the average for all occupations, adding about 2.4 million new jobs.

Healthcare occupations are projected to add more jobs than any of the other occupational groups. This projected growth is mainly due to an aging population, leading to greater demand for healthcare services.

Plus, you can consider these factors… A high average yearly salary for medical workers. Healthcare is an extremely profitable industry. COVID created a lot of extra activity around healthcare in 2020. Even before the pandemic, professionals were saying the decade of 2020 is going to be huge for healthcare. And this is great for the best healthcare stocks.

Do you want to see some return on your money, while investing in well-known, steady companies? Of course, I can’t guarantee anything.

But the following stocks might give your portfolio some stability, and a great return on your investment.

Check out the investing research below…

doctor researching healthcare stocks

Healthcare Stocks to Buy

Best:

  • Pfizer (NYSE: PFE)

Runners-Up:

  • Johnson & Johnson (NYSE: JNJ)
  • United Health Group (NYSE: UNH)

Best Healthcare Stocks

These three stocks are some of the top profit-makers in the entire industry. That is great for investors. The more profitable the company is, the more it can reinvest in the business and also return to shareholders. If earnings continue to grow, the higher the stock will likely go.

These are large, stable companies with solid reputations behind them. They have great leadership, and many years of experience serving the healthcare sector.

Why Pfizer is the Best Healthcare Stock

Pfizer’s having incredible monetary success with its COVID vaccine. Countries around the globe are using it. Pfizer is an American pharmaceutical and biotech company, serving many nations.

When COVID first entered our lives, it was one of the first to pop out a vaccine. Beyond COVID, its other drugs saw some nice growth in Q1 of 2021.

Even now, as the COVID crisis winds down, Pfizer’s stock is ramping back up. It has a big market cap with lots of trading volume. Pfizer made close to $10 billion in net income in 2020. That’s down a bit from the previous year. Although, profit is already rebounding this year.

This makes for a comfy healthcare stock.

The P/E ratio is a bit high, so that is something to keep in mind. It may be a good idea to wait to buy Pfizer.

But if you like dividends, Pfizer has a nice payout. It has a long history of giving regular dividends.

Another thing to look at is the fact that Pfizer now has an improved “pipeline procedure.” It can use this process for getting drugs and other products approved and out to market quickly.

Pfizer is already using this to increase productivity. Morningstar reports that it’s doing this with its “potential game-changer in the rare disease area.” This “game-changer” is a cardiovascular drug called Vyndaquel.

Here’s something else interesting that happened with Pfizer in 2020. Pfizer spun off part of its business to combine with another business and form Viatris Inc. If you owned Pfizer stock during that time, Pfizer gave you some Viatris stock!

There are lots of great reasons Pfizer is one of the top healthcare stocks. It has great potential to keep pushing upwards. It pays dividends. And (unless something major happens) the company isn’t going anywhere for a while. It’s still innovating and expected to grow with the healthcare industry.

Plus, it might give you some extra stock if it spins off more segments in the future.

Johnson & Johnson is a Healthcare Giant

Another great healthcare stock is Johnson and Johnson. It’s also got a somewhat high P/E ratio. But it sports a nice dividend yield. It’s hovering around 2.5%. The dividend looks safe going forward and it’s a solid yield in our low interest rate world.

Johnson and Johnson revenue came in close to $83 billion in 2020. And its projected revenue forecast is $94 billion for 2021.

As one of the best healthcare stocks, Johnson & Johnson has been getting lots of press over the past year. This will help people remember the company, which can also help it grow.

Leadership at the company is solid and equipped to keep things growing and running smoothly.

Johnson & Johnson has a long history of 135 years. You can be sure this company isn’t going anywhere. Unless there’s an apocalypse or other extreme event. This company has a long history of rewarding shareholders.

United Health Group and Health Insurance

United Health Group is an American based healthcare insurance stock.

Biotech and pharmaceutical companies aren’t the only ones profiting from the COVID upheaval.

It’s no secret that the health industry flourished from COVID. People were afraid and purchased more health insurance. This likely got them thinking about other medical related emergencies, too.

United Health Group brought in over $255 billion in revenue in 2020. Analysts have also recently raised United Health stock projections, too. The company had a lot more revenue than it expected in the second quarter of 2021. This year is looking like revenue growth will be higher than expected.

United owns two major branches. The first is United Healthcare. It’s focused on providing healthcare benefits. The second is Optum. This includes drug services, HSAs and a processor for other health companies.

With a broad range of services for the masses, United might be one of the best healthcare stocks to add to your portfolio.

Investing in Healthcare Stocks and Beyond

Healthcare stocks can be a great place to put money. Especially if you’re looking for reliable long-term growth. Also, big healthcare stocks often pay dividends, which is always nice. On top of all that, the healthcare industry is already a top industry for growth. Plus, it’s projected to move even faster in the next decade. Remember, employment’s expected to grow 15% from 2019 to 2029.

If you’re looking for even more investing opportunities, consider these industries and stocks…

You can also sign up for Wealthy Retirement below. It’s a free e-letter that’s packed with investing tips and tricks. Whether you’re a beginner or already an advanced investor, there’s something for everyone.


About

Vanessa Adelman graduated with an Interdisciplinary degree. She majored in Entrepreneurship, Painting, Music and Film. Shortly after, she received a copywriting mentorship with Mark Morgan Ford. Then, she earned her AWAI Verification. Now, Vanessa freelances in the financial direct response industry. She’s been investing since 2016. In her free time, she enjoys books about money and wealth. She loves being with her boyfriend, hunting, fishing and going on outdoor adventures.

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