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【XM Market Analysis】--The Best Healthcare Stocks to Buy Now
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Hello everyone, today XM Forex will bring you "【XM Market Analysis】--The Best Healthcare Stocks to Buy Now". I hope it will be helpful to you! The original content is as follows:
Healthcare stocks are publicly listed xmcnglobal.companies active in the healthcare sector. They cover a broad range of subsectors and xmcnglobal.companies, including pharmaceutical, medical devices, biotech, healthcare providers, health insurers, and pharmacy benefit managers (PBMs).
Why Should you Consider Investing in Healthcare Stocks?
Healthcare stocks are an excellent defensive investment to protect a portfolio against economic uncertainty, recessions, and, to a lesser extent, inflation. Consumers with prescription medication or medical needs cannot alter their treatment due to economic swings, making revenue streams for healthcare stocks more stable.
Here are a few things to consider when evaluating healthcare stocks:
- Invest in healthcare stocks with a healthy pipeline of medications and treatments in Phase I, Phase II, and Phase III trials.
- Evaluate the current products and how they address the needs of the current healthcare situation.
- Ensure a healthy pidend yield to xmcnglobal.compensate for the added political and regulatory risks.
- Analyze the balance sheet and focus on free cash flow and overall debt levels.
What are the Downsides of Healthcare Stocks?
Investing in healthcare stocks requires considering political and regulatory risks. They are unexpected developments that can swiftly reverse momentum and cause double-digit selloffs. High research and development costs, expiring patents, and stiff xmcnglobal.competition are additional downsides of healthcare stocks.
Here is a shortlist of healthcare stocks currently worth considering:
- Novo Nordisk (NVO)
- Medtronic (MDT)
- Pfizer (PFE)
- CRISPR Therapeutics AG (CRSP)
- Vertex Pharmaceuticals (VRTX)
- Intellia Therapeutics (NTLA)
- Abbott Laboratories (ABT)
- Bristol-Myers Squibb xmcnglobal.company (BMY)
- Merck & xmcnglobal.company (MRK)
- Recursion Pharmaceuticals (RXRX)
Update On My Previous Best Healthcare Stocks to Buy Now
In our previous installment, I highlighted the upside potential of Novo Nordisk and Medtronic.
Novo Nordisk (NVO) - A long position in NVO between $52.72 and $56.08
NVO has dropped nearly 15% since my buy recommendation, but I remain bullish on its upside potential, given its drug pipeline, and will add to my long position.
Medtronic (MDT) - A long position in MDT between $91.59 and $95.29
After decreasing, MDT rallied and is up nearly 10% since my recommendation. I am tightening my stop-loss, as upside potential appears slim from current levels.
Pfizer Fundamental Analysis
Pfizer is a multinational pharmaceutical and biotechnology xmcnglobal.company. It specializes in immunology, oncology, cardiology, endocrinology, and neurology. PFE also ranks fifth among the most prominent biomedical xmcnglobal.companies by revenue. Pfizer is also a xmcnglobal.component of the S&P 100 and the S&P 500 indices.
So, why am I bullish on PFE after bouncing higher off support levels?
While Pfizer beat earnings and raised its full-year EPS guidance, it included a one-time $7.0 billion expense related to unusual items, suggesting that future earnings may be understated. PFE trades at relatively low valuations and has excellent returns on assets and invested capital, with superb profit margins. I am also bullish on Pfizer after winning the bidding war for Metsera with a $10 billion deal.
Metric
Value
Verdict
P/E Ratio
14.56
Bullish
P/B Ratio
1.53
Bullish
PEG Ratio
13.77
Bearish
Current Ratio
1.28
Bearish
Return on Assets
4.71%
Bullish
Return on Equity
10.59%
Bullish
Profit Margin
15.65%
Bullish
ROIC-WACC Ratio
Positive
Bullish
Dividend Yield
7.05%
Bullish
Pfizer Fundamental Analysis Snapshot
The price-to-earning (P/E) ratio of 14.56 makes PFE an inexpensive stock. By xmcnglobal.comparison, the P/E ratio for the S&P 500 Index is 29.47.
The average analyst price target for PFE is $28.96. This suggests moderate upside potential with manageable downside risk.
Pfizer Technical Analysis
Pfizer Price Chart
- The PFE D1 chart shows price action trading below its ascending Fibonacci Retracement Fan.
- It also shows Pfizer bouncing off its horizontal support zone with rising bullish and falling bearish trading volumes.
- The Bull Bear Power Indicator turned bullish with an ascending trendline.
My Call on Pfizer
I am taking a long position in PFE between $23.91 and $25.52. The $10 billion Metsera acquisition unlocks future revenue in a high-growth market and persifies its pipeline. Investors receive a pidend yield above 7% from a superb healthcare xmcnglobal.company and its excellent operational metrics.
Vertex Pharmaceuticals Fundamental Analysis
Vertex Pharmaceuticals (VRTX) is a biopharmaceutical xmcnglobal.company that was among the first to use rational drug design rather than xmcnglobal.combinatorial chemistry. VRTX is also a xmcnglobal.component of the NASDAQ 100 and the S&P 500 indices.
So, why am I bullish on Vertex Pharmaceuticals after its recent advance?
While Vertex Pharmaceuticals does not pay a pidend, investors benefit from an industry-leading return on invested capital of over 17%, free cash flow of over 25%, and annual revenue growth of over 14% over the past five years. I am bullish about its persified pipeline, including 60% of the profits from Casgevy, developed by CRISPR Therapeutics AG, its non-opioid painkiller Journavx, and its late-stage clinical pipeline.
Metric
Value
Verdict
P/E Ratio
30.03
Bullish
P/B Ratio
6.25
Bearish
PEG Ratio
0.58
Bullish
Current Ratio
2.36
Bullish
Return on Assets
14.78%
Bullish
Return on Equity
21.22%
Bullish
Profit Margin
31.35%
Bullish
ROIC-WACC Ratio
Positive
Bullish
Dividend Yield
0.00%
Bearish
Vertex Pharmaceuticals Fundamental Analysis Snapshot
The price-to-earnings (P/E) ratio of 25.98 makes VRTX an inexpensive stock. By xmcnglobal.comparison, the P/E ratio for the S&P 500 index is 29.45.
The average analyst price target for Vertex Pharmaceuticals is $482.24. It suggests good upside potential with acceptable downside risks.
Vertex Pharmaceuticals Technical Analysis

Vertex Pharmaceuticals Price Chart
- The VRTX D1 chart shows price action between its ascending 0.0% and 38.2% Fibonacci Retracement Fan.
- It also shows Vertex Pharmaceuticals inside a bullish price channel with rising bullish trading volumes.
- The Bull Bear Power Indicator is bullish with an ascending trendline.
My Call on Vertex Pharmaceuticals
I am taking a long position in Vertex Pharmaceuticals between $418.53 and $435.85. Its leadership position in cystic fibrosis (CF) medicine is a proven revenue driver, while the 60% profit share in Casgevy and its recently approved non-opioid painkiller, Journavx, strengthen its pipeline. VRTX also has an excellent capital position and superb operational metrics.
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