In this article we discuss 5 Cheap Healthcare Stocks to Buy Now. If you want to read our detailed analysis of the healthcare industry, go directly to 10 Cheap Healthcare Stocks to Buy Now.
5. Bio-Rad Laboratories, Inc. Class A Common Stock (NYSE: BIO)
PE Ratio (TTM): 5.09
California-based Bio-Rad makes specialized technological products for the life science research and clinical diagnostics markets. In the third quarter, Bio-Rad posted a non-GAAP EPS of $3, above the Wall Street’s estimate by $1.18. Revenue in the period totaled $647.3 million, which shows a 15.5% growth. This also beat the consensus by $79.95 million.
A total of 48 hedge funds tracked by Insider Monkey held stakes in the company at the end of the third quarter. The total value of these stakes is $1.2 billion. Raiv Jain’s GQG Partners increased its hold in Bio-Rad in the quarter, ending the period with 354,266 shares of the company, worth $182.61 million.
4. Biogen Inc (NASDAQ: BIIB)
PE Ratio (TTM): 8.64
Switzerland-based Biogen sells therapies for the treatment of neurological diseases. Unlike major pharmaceutical companies, Biogen does not mass-market its products and its treatments are highly expensive and offered only to a narrow customer base. The company is also known for its treatments for multiple sclerosis, leukemia and hemophilia. Biogen shares have gained over 6% in the last 30 days.
Jim Simons’ Renaissance Technologies owns 3.82 million shares of Biogen as of the end of the third quarter. The total value of these shares is $1.1 billion. A total of 59 hedge funds tracked by Insider Monkey held long positions in the company at the end of September.
Distillate Capital recently said the following about BIIB in their Q2 2020 Investor Letter:
“The biggest additions to the portfolio in the rebalance were Biogen and Philip Morris, each increasing around 30 basis points as their relative valuations improved over the quarter.”
Related Article: Is BIIB A Good Stock To Buy Now?3. Humana Inc (NYSE: HUM)
PE Ratio (TTM): 12.17
Kentucky-based Humana is one of the biggest health insurance companies in the U.S., with over 20 million members. In 2019, the company’s revenue totaled $56.9 billion. It is also a part of the Fortune 500 list. In the fourth quarter of 2020, Humana’s revenue jumped over 16% to reach $18.96 billion, beating the Street’s forecast by $200 million. For 2021, the company expects EPS in the range $21.25 to $21.75.
A total of 61 hedge funds tracked by Insider Monkey are bullish on Humana.
VLTAVA Fund said the following about Humana stock in their Q2 2020 Investor Letter:
“Humana is benefitting from a lower number of visits to physicians, which means lower insurance pay-outs for health care. This trend will most probably return gradually to normal by the end of the year.”
Related Article: Is HUM A Good Stock To Buy Now?
2. CVS Health Corp (NYSE: CVS)
PE Ratio (TTM): 12.16
Rhode Island-based CVS Health owns CVS Pharmacy chain, health insurance company Aetna and several other brands. In January, CVS stock was upgraded by Jefferies analyst Brian Tanquilut to Buy from Hold on the back of COVID-19 vaccination drive across the country. The analyst thinks that the vaccination rollout will boost the company’s earnings in the near term. The analyst also believes that strong FCF will help the company resume share buybacks in late 2021.
A total of 61 hedge funds tracked by Insider Monkey were bullish on CVS stock at the end of the third quarter, compared to 65 funds a quarter earlier.
Related Article: Is CVS A Good Stock To Buy Now?
1. Bristol-Myers Squibb Co (NYSE: BMY)
Forward P/E: 8.28
Bristol-Myers makes treatments and drugs for several diseases, including cancer, HIV/AIDS, cardiovascular disease, diabetes and rheumatoid arthritis. The stock is gaining ground after the company’s non-GAAP EPS and revenue in the fourth quarter beat estimates. Product sales in the quarter jumped 39%.
Warren Buffett’s Berkshire Hathaway is one of the 124 hedge funds tracked by Insider Monkey that reported owning stakes in Bristol at the end of the third quarter. The hedge fund owns $7.6 billion worth of BMY shares.
Wedgewood Partners recently said the following about BMY shares in their Q4 2020 Investor Letter:
“Bristol-Myers Squibb recently reported accelerating sales as much of the medical services industry returned to work. The Company continues to expect double-digit earnings growth over the next few years, driven by existing drugs, in addition to a broad pipeline of new drugs and indications. While the market remains fixated on a couple of patent expirations that could occur over the next several years, we think this is well-known at this point, yet the market still undervalues a couple of key acquisitions the Company has made in the past few years, particularly Celgene, which was acquired for a song.”
You can also read 10 Best Water Stocks and ETFs to Buy in 2021 and 15 Biggest Vaccine Companies In The World.
