2 main health stocks to buy in 2021 and beyond

IIf you’re looking for new stocks to add to your portfolio that can generate sustained growth and continue to deliver returns in all kinds of markets, a great industry to consider is healthcare. While not all stocks in this sector perform equally in turbulent markets, many provide products and services that customers need regardless of the economy, which can strengthen the resilience of the market. portfolio of a long-term investor.

To that end, today we’re going to take a look at two high-growth companies in the healthcare industry. One is a leader in medical robotics while the other helps healthcare companies run their businesses more efficiently. Let’s get started.

Image source: Getty Images.

1. Intuitive surgery

Pioneer of medical robotics Intuitive surgery (NASDAQ: ISRG) was founded in 1995 and has been a publicly traded entity for over two decades. Since the IPO, its shares have climbed more than 16,000%. In the past year alone, the stock has risen by over 40%. With its shares now trading at just under $ 1,000, it’s no surprise that the company is considering a stock split in early October.

The stock has skyrocketed for good reason. Intuitive dominates the global surgical robotics market (more than three-quarters, in fact), most notably with its da Vinci surgical system. His approach has become increasingly widely accepted – and therefore Intuitive’s revenue over the past decade has increased by almost 150% while net income has increased by around 114%.

And the business is just getting started. The global surgical robotics industry is expected to grow exponentially in the coming years as an increasing number of medical providers use these tools in minimally invasive procedures due to their efficiency, accuracy, and ability to generate more positive post-operative results, such as shorter hospital stays. care.

An investment in Intuitive Surgical could generate sustained returns for many years to come as it expands its presence in this multi-billion dollar industry and the dependence on surgical robotics continues to grow.

2. Veeva systems

Cloud solution provider Veeva Systems (NYSE: VEEV) It might not be a name that immediately comes to mind when thinking of the healthcare industry, but it’s a compelling choice for long-term investors to consider. The company helps healthcare companies, ranging from known pharmaceutical giants to smaller life science entities, store their information efficiently.

Veeva customers seem to enjoy what they do. The company has a long and respectable history of growth, having increased revenue by over 160% and net profit by almost 390% over the past five years.

And the company stays on track. For the first half of its 2022 fiscal year (ended July 31), Veeva announced an increase in revenues of approximately 29% compared to the previous year. This is due to a 28% increase in its subscription services as well as a 33% increase in its professional and other services. Net income has increased by about 25% over the same period.

Veeva’s stock doesn’t come cheap, trading at around $ 285 per share and a sell price (P / S) of around 26. But it’s also safe to say that these types of valuations are something investors expect from stocks in high-growth countries. SaaS space. The company’s shares have appreciated steadily over the years – and even at its current premium valuation, Wall Street believes the stock is up as much as 40% over the next 12 months.

Finally, demand for Veeva’s products and services is probably going nowhere, and its list of customers, including big names like Merck, Eli lilly, and Bayer – is only growing. Veeva Systems is in stock for the long haul. And if you’re not thrilled with its current price, there’s no harm in dipping your toe by investing in fractions of shares of this stock for now.

10 actions we prefer over Intuitive Surgical
When our award-winning team of analysts have stock advice, it can pay off to listen. After all, the newsletter they’ve been running for over a decade, Motley Fool Equity Advisor, has tripled the market. *

They have just revealed what they believe to be the ten best stocks for investors to buy now … and Intuitive Surgical was not one of them! That’s right – they think these 10 stocks are even better buys.

See the 10 actions

* The portfolio advisor returns on September 17, 2021

Rachel Warren has no position in any of the stocks mentioned. The Motley Fool owns shares and recommends Intuitive Surgical and Veeva Systems. The Motley Fool recommends the following options: $ 580 long calls in January 2022 on Intuitive Surgical and $ 600 short calls in January 2022 on Intuitive Surgical. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source link

Comments are closed.