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Top 10 Healthcare Stocks to Buy

In this article, we discuss top 10 healthcare stocks to buy. If you want to read about some more healthcare stocks, go directly to Top 5 Healthcare Stocks to Buy.

Focus in the healthcare sector has steadily been shifting away from the coronavirus pandemic to diversification, vertical integration, and new business building in the past few months. According to a report by consulting firm McKinsey, innovation and growth have continued unabated in the healthcare industry despite persistent inflation in consumer prices. Volatile investment conditions and a tight labor market, however, continue to present operating and financial challenges for healthcare leaders.

Stephanie Allen, a leader in the global public health and social services world, told research firm Deloitte recently that COVID-19 has accelerated numerous trends in the healthcare sector, particularly around health equity and sustainability. Allen claims that shifting consumer preferences and behavior, the integration of life sciences and healthcare sector, rapidly evolving digital health technologies, new talent and care delivery models, and clinical innovation continue to be top of mind for healthcare executives globally. 

Some of the top healthcare stocks to buy in this context include Thermo Fisher Scientific Inc. (NYSE:TMO), UnitedHealth Group Incorporated (NYSE:UNH), and Johnson & Johnson (NYSE:JNJ). McKinsey estimates that the healthcare sector will grow at a compound annual growth rate of 6% between 2021 and 2025, adding about $31 billion in profits during the time. The firm has also warned that profits could decline by more than $70 billion during this period if inflation continues unchecked. 

Our Methodology

The companies that operate in the healthcare sector were selected for the list. In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks are also discussed. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.

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Top Healthcare Stocks to Buy

10. Teladoc Health, Inc. (NYSE:TDOC)

Number of Hedge Fund Holders: 32    

Teladoc Health, Inc. (NYSE:TDOC) provides virtual healthcare services in the United States and internationally. It is one of the best healthcare stocks to invest in. On August 26, the company announced that it had partnered with Cloud DX, which provides remote patient monitoring, to better serve the remote monitoring needs of patients in Canada. Under this partnership, existing remote patient monitoring services of Cloud DX platform in Canada will be enhanced with the virtual care capabilities of Teladoc.

On September 27, Deutsche Bank analyst George Hill maintained a Hold rating on Teladoc Health, Inc. (NYSE:TDOC) stock and lowered the price target to $31 from $34, noting the business of the firm had matured rapidly during the pandemic. 

At the end of the second quarter of 2022, 32 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Teladoc Health, Inc. (NYSE:TDOC), compared to 36 the preceding quarter worth $1.97 billion.

Just like Thermo Fisher Scientific Inc. (NYSE:TMO), UnitedHealth Group Incorporated (NYSE:UNH), and Johnson & Johnson (NYSE:JNJ), Teladoc Health, Inc. (NYSE:TDOC) is one of the best healthcare stocks to buy according to hedge funds. 

In its Q1 2022 investor letter, RiverPark Funds, an asset management firm, highlighted a few stocks and Teladoc Health, Inc. (NYSE:TDOC) was one of them. Here is what the fund said:

“Teladoc Health, Inc. (NYSE:TDOC) is the largest telehealth provider in the US and has recently begun to expand internationally. TDOC’s platform enables an ever-expanding list of patient-doctor interactions (including those for primary health care, mental health issues and chronic condition management) to transition from an on-site visit to one that can be done remotely with full video- based interaction. TDOC provides its platform of services on both a business-to-business and direct-to-consumer basis, through monthly subscription-based relationships. For its core business-to-business clients, the company contracts with a wide range of entities, including large scale employers (the company currently contracts with over 50% of the Fortune 500), health plans, health systems, and medical insurance companies, which currently cover more than 50 million members. For these customers, the company provides a win-win-win, as patients spend no time traveling and less time waiting, doctors are more efficient seeing more patients in less time, and payers (employers and plan sponsors) save money while being able to offer a highly popular additional benefit for their employees. This B to B market is projected to be a +$100 billion market opportunity and TDOC is the clear global market leader. For its direct-to- consumer clients, the company provides a growing suite of services for individuals to have affordable access to on-demand and scheduled medical services, for which their current insurance does not provide reimbursement (such as extended mental health counseling) (…read more)

9. Bio-Rad Laboratories, Inc. (NYSE:BIO)

Number of Hedge Fund Holders: 43    

Bio-Rad Laboratories, Inc. (NYSE:BIO) manufactures and distributes life science research and clinical diagnostic products in the United States, Europe, Asia, Canada, and Latin America. It is one of the top healthcare stocks to invest in. On October 10, The Wall Street Journal reported that the diagnostics company was in talks with competitor Qiagen N.V for a merger deal. This deal could be worth more than $41 billion, per the report. 

On August 24, Credit Suisse analyst Dan Leonard initiated coverage of Bio-Rad Laboratories, Inc. (NYSE:BIO) stock with an Outperform rating and a $715 price target, noting that the company has margin expansion opportunities in the coming months. 

At the end of the second quarter of 2022, 43 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Bio-Rad Laboratories, Inc. (NYSE:BIO), compared to 45 in the previous quarter worth $1.6 billion.

8. Zoetis Inc. (NYSE:ZTS)

Number of Hedge Fund Holders: 62    

Zoetis, Inc. (NYSE:ZTS) discovers, develops, manufactures, and commercializes animal health medicines, vaccines, and diagnostic products in the United States and internationally. It is one of the premier healthcare stocks to invest in. On September 5, the company revealed that it had acquired NewMetrica, a Scottish animal health-related digital tool developer. The drugmaker said that this acquisition will enhance their capabilities across the continuum of care and will advance their expertise in qualities of life assessments. 

Among the hedge funds being tracked by Insider Monkey, California-based investment firm Arrowstreet Capital is a leading shareholder in Zoetis, Inc. (NYSE:ZTS), with 2.1 million shares worth more than $359 million. 

In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Zoetis, Inc. (NYSE:ZTS) was one of them. Here is what the fund said:

“Shares of Zoetis, Inc. (NYSE:ZTS), the global leader in the discovery, development, and manufacturing of companion and farm animal health medicine and vaccines, fell along with shares of other high-multiple 2021 standout performers. We retain conviction as Zoetis recently reported a top and bottom line beat with more than 21% growth driven by dermatology, parasiticides, and recently launched monoclonal osteoarthritic treatments. The company’s 2022 guidance was in line with Street expectations, calling for 9% to 11% operational revenue growth and modest margin expansion despite heavy investment in core growth drivers.”

7. HCA Healthcare, Inc. (NYSE:HCA)

Number of Hedge Fund Holders: 63    

HCA Healthcare, Inc. (NYSE:HCA) provides healthcare services in the United States. It is one of the major healthcare stocks to invest in. On June 23, the company announced that it was partnering with Mckesson, a drug distributor, for a joint venture to create a fully integrated oncology research organization combining their respective research arms. This joint venture focuses on expanding clinical research services to improve the risk of cancer and treatment options for patients.

On September 16, investment advisory Raymond James maintained an Outperform rating on HCA Healthcare, Inc. (NYSE:HCA) stock and raised the price target to $250 from $230. Analyst John Ransom issued the ratings update. 

At the end of the second quarter of 2022, 63 hedge funds in the database of Insider Monkey held stakes worth $2.1 billion in HCA Healthcare, Inc. (NYSE:HCA), compared to 62 the preceding quarter worth $2.9 billion.

In its Q2 2022 investor letter, Diamond Hill Capital Management, an asset management firm, highlighted a few stocks and HCA Healthcare, Inc. (NYSE:HCA) was one of them. Here is what the fund said:

“HCA Healthcare, Inc. (NYSE:HCA) is a best-in-class operator of acute care hospitals and other health care facilities, including outpatient surgery centers. It has a strong market presence in highly attractive geographies with growing populations and low unemployment, such as Texas and Florida, which leads to a favorable payor mix. We are further attracted to its strong management team that has a stellar track record of deploying capital, and the founding family continues to own almost a quarter of the business. We initiated a position after HCA reported Q1 earnings — it reduced full year guidance due to increased labor costs and lower-than-expected acuity among COVID admissions, dampening near-term investor sentiment.”

6. CVS Health Corporation (NYSE:CVS)

Number of Hedge Fund Holders: 65  

CVS Health Corporation (NYSE:CVS) provides health services in the United States. It is one of the elite healthcare stocks to invest in. On September 29, the company announced that it had extended an existing partnership with McKesson, a health information technology and pharmaceutical distribution company, to distribute pharmaceuticals of the latter through June 2027. The distribution extends to mail order and retail distribution pharmacies. 

On September 7, investment advisory Evercore ISI maintained an Outperform rating on CVS Health Corporation (NYSE:CVS) stock and raised the price target to $125 from $120. Analyst Elizabeth Anderson issued the ratings update. 

Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm AQR Capital Management is a leading shareholder in CVS Health Corporation (NYSE:CVS), with 3.4 million shares worth more than $312.7 million.

In addition to Thermo Fisher Scientific Inc. (NYSE:TMO), UnitedHealth Group Incorporated (NYSE:UNH), and Johnson & Johnson (NYSE:JNJ), CVS Health Corporation (NYSE:CVS) is one of the best healthcare stocks to buy according to hedge funds. 

In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and CVS Health Corporation (NYSE:CVS) was one of them. Here is what the fund said:

“Improving health remains a key impact theme for the portfolio, and over the past year or so we have increased our exposure to the health care sector, through the addition of CVS Health Corporation (NYSE:CVS)CVS Health Corporation (NYSE:CVS), which is well-positioned to help define the future of health care in terms of costs, quality and convenience.”

Click to continue reading and see Top 5 Healthcare Stocks to Buy.

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Disclosure. None. Top 10 Healthcare Stocks to Buy is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

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One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
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AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

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AI needs energy. Energy needs infrastructure.

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This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

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This company is completely debt-free.

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The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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  • The AI infrastructure supercycle
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You simply won’t find another AI and energy stock this cheap… with this much upside.

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Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…