ISRG stock – IBM Stock – 3 Top Healthcare Stocks to Buy Right Now | Fintech Zoom

If you’re looking for a hot area in which to invest, you’ll definitely want to check out the healthcare sector. Healthcare accounts for nearly 18% of the U.S. gross domestic product (GDP). The sector continues to grow, fueled in part by aging populations across the world.

Some healthcare investment opportunities especially stand out. Here are three top healthcare stocks to buy right now.

Image source: Getty Images.

Intuitive Surgical

Performing surgeries with the help of a robot would’ve been only science fiction not too long ago. Over the past two decades, though, Intuitive Surgical (NASDAQ: ISRG) has pioneered the use of robotic surgical technology. Today, more than 8.5 million procedures have been performed with its surgical robots.

There’s still a lot of room for Intuitive Surgical to grow. The company estimates that there are around 6 million procedures performed each year for which its robotic systems already have regulatory clearances. That’s five times the number of procedures in which Intuitive’s systems were used last year. Aging trends should drive even higher volumes for those types of procedures in the future.

Intuitive Surgical is also investing in research and development to expand the procedures for which its systems can be used. The company estimates that there are roughly 20 million soft tissue surgical procedures performed each year and wants to target all of them.

Sure, Intuitive won’t have the market all to itself. However, it has a huge first-mover advantage with a long track record of success. And customers like the company, as evidenced by Intuitive’s Net Promoter Score (NPS) of 69. Any NPS above 50 is considered excellent. This stock should soar over the next decade as the adoption of robotic surgery increases.

Teladoc Health

The idea of visiting doctors virtually has been around for years. But telehealth really hit its stride in 2020, thanks to the COVID-19 pandemic. Teladoc Health (NYSE: TDOC) ranked among the biggest winners, with its shares skyrocketing nearly 140%.

It’s still in the early innings for telehealth, though. International consulting firm McKinsey and Company estimates that the annual U.S. virtual-care market will grow to around $250 billion after the pandemic is over. As the leading telehealth services provider, Teladoc should be able to profit from this growth.

Of course, such a massive market opportunity is attracting competition. In addition to battling current rivals, Teladoc will soon face another threat from Amazon.com. The internet giant recently announced plans to expand its Amazon Care telehealth service to all U.S. employees this summer, as well as target other employers later this year.

Teladoc should be able to hold its own against Amazon, though. Its customer base already includes more than 40% of the Fortune 500. The company’s acquisition of Livongo Health last year also gives it a digital health platform for helping individuals manage chronic conditions — a capability that its rivals don’t have.

Most importantly, the telehealth opportunity is big enough to support multiple winners over the long term. Teladoc Health will almost certainly be one of them.

Vertex Pharmaceuticals

While Intuitive Surgical and Teladoc Health have some competition, Vertex Pharmaceuticals (NASDAQ: VRTX) enjoys a monopoly. There are currently four drugs approved in the U.S. for treating the underlying cause of cystic fibrosis (CF), and Vertex markets all of them.

This monopoly has fueled tremendous growth for Vertex. It’s also given the biotech an enviable cash stockpile of $6.7 billion. Look for Vertex to put that money to good use by making deals to expand its pipeline.

The company, however, has its sights set beyond CF. Vertex expects to announce results from a phase 2 study of VX-864 in treating another rare genetic disease, alpha-1 antitrypsin deficiency, within the next few months. It’s working with CRISPR Therapeutics to evaluate gene-editing therapy CTX001 in treating rare blood disorders beta-thalassemia and sickle cell disease. Vertex also anticipates reporting results from a phase 2 study of VX-147 in treating rare genetic disease APOL1-mediated focal segmental glomerulosclerosis later this year.

Perhaps the most intriguing opportunity for Vertex, though, is in a disease that isn’t so rare. The biotech advanced experimental gene therapy VX-880 into clinical testing earlier this month for treating type 1 diabetes. Vertex thinks that VX-880 has the potential to essentially cure the disease.

It’s unlikely that all of Vertex’s pipeline candidates will be successful. However, all the company needs is one or two of them to pan out for it to continue delivering tremendous growth in the future.

10 stocks we like better than Vertex Pharmaceuticals
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Fintech Zoom Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Vertex Pharmaceuticals wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of February 24, 2021

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Fintech Zoom’s board of directors. Keith Speights owns shares of Amazon, Intuitive Surgical, Teladoc Health, and Vertex Pharmaceuticals. The Fintech Zoom owns shares of and recommends Amazon, CRISPR Therapeutics, Intuitive Surgical, and Teladoc Health. The Fintech Zoom recommends Vertex Pharmaceuticals and recommends the following options: long January 2022 $1920 calls on Amazon, long January 2022 $580 calls on Intuitive Surgical, short January 2022 $1940 calls on Amazon, and short January 2022 $600 calls on Intuitive Surgical. The Fintech Zoom 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.

ISRG stock – IBM Stock – 3 Top Healthcare Stocks to Buy Right Now | Fintech Zoom

Tags: ISRG stock, Intuitive Surgical, Inc.



Source link