The defensive nature of health care stocks is particularly attractive to investors during this unprecedented time. One reason for that could be its consistency. What this year taught us is how volatile the stock market today can be; stock prices can pop or drop without warning. This is why it’s particularly important to have some exposure to these health care stocks that you can rely on for stability and consistent dividend yield. The long term growth aspect of the health care industry is supported by the combination of an aging population and advances in medical sciences and technology.
Looking for top health care stocks to buy is relatively straightforward, if you compare them to pre-revenue biotech stocks, of course. Like I always said, with some of the best health care stocks in the stock market, you could always buy high to sell higher. Because no matter how the broader economy is performing, people will still need access to health care services and drug prescriptions. Sure, the coronavirus has dramatically reshaped the way we live. Therefore, it is not a surprise that health care access has been evolving.How COVID-19 May Reshape Health Care Stocks
With the virus still raging, this leaves many investors and industry experts speculate how the novel coronavirus may affect the future of the American health care system; and how the virus has already changed it. Hence, it should come as no surprise that telemedicine is among some of the popular offerings in the health care sector right now. With most of the health care resources diverted to Covid-19, resources for other health issues are taking a back seat. A bright spot amid the pandemic is the rise of telehealth stocks. Don’t believe me? Take a look at the share prices of Teladoc (TDOC Stock Report) and Livongo Health (LVGO Stock Report), and you would understand what I’ve just said.
Investors are still struggling to predict where the market is heading next. Even so, many are betting on these health care stocks that could be winners because of coronavirus-led trends. With all that being said, does your list of best stocks to buy include these health care companies?
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Similar to Teladoc, Amwell (AMWL Stock Report) is among the top telehealth stocks to watch in the U.S. It has a broad network as part of 55 health plans. About 36,000 employers use the platform, covering 80 million individuals. Since the company first started in 2006, its platform has recorded 5.6 million telehealth visits. And it is not stopping there. In the first half of 2020 alone, the platform saw 2.9 million visits. That is no surprise as the pandemic has encouraged those with less critical conditions to access health care remotely.
The company’s highly scalable business model allows patients to access a certified doctor at the comfort of their home, anytime they want. Amwell provides online consultations at all times with its physicians across 50 states. During the first half of 2020, Amwell’s revenue increased by 77% over the previous year to $122.3 million. Simultaneously, its monthly visit volumes increased by more than 400%.
With such strong results, Amwell has attracted the attention of Alphabet’s (GOOGL Stock Report) Google, which invested $100 million in Amwell in August. Chances are, a sizable portion of the proceeds will advance the company’s research and development. In fact, we can see this commitment as the management has dedicated large amounts for platform innovation. Unlike what you may associate with some other digital health companies, Amwell has a robust balance sheet. Its $831.6 million in cash and investments well exceeds its $113.4 million in total liabilities. What’s more, the company has already gone up by over 70% since going public a month ago. The question is, will the momentum in AMWL stock continue this month?Top Health Care Stocks To Watch Right Now: Pfizer
Pfizer (PFE Stock Report) has been getting a lot of attention in recent months. This is thanks to its potential coronavirus vaccine from the partnership with BioNTech (BNTX Stock Report), on top of its massive pipeline of drugs.
The partnership revealed that their leading coronavirus vaccine candidate, BNT162b2, is on track to be first to find out if its COVID-19 vaccine works by the end of October. And the anticipation of the news is certainly keeping PFE stock investors on the edges of their seats. The partnership appears to be the first among the contenders in the vaccine race.
If the vaccine wins the approval of regulators, Pfizer and BioNTech have said that they could supply up to 100 million doses by the end of this year. That’s enough to vaccinate 50 million people. In the following year, the duo could supply another 1.3 billion doses of the vaccine. Should all go well as planned, PFE stock would receive another boost in its stock price. On the flip side, in the event where the vaccine fails to produce strong data, it probably wouldn’t result in the free-falling of PFE stock. With this in mind, would you buy PFE stock today?
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Another health care stock worth keeping an eye on is Moderna (MRNA Stock Report). The company’s coronavirus vaccine candidate is now under regulatory inspection with Health Canada, the country’s health care authority. The company’s mRNA-1273 is currently in its phase 3 trial. Should it ultimately be approved by Health Canada, the company should be able to supply it relatively quickly. Investors found the company’s news heartening. As a result, MRNA stock closed 3.9% higher on Tuesday when the broader market weakened slightly.
“We are pleased with the interactions with the Canadian regulatory authorities and we appreciate their guidance and confidence in Moderna to pursue a rolling submission in Canada,” the company quoted its CEO Stephane Bancel as saying.
Apart from its coronavirus vaccine candidate, Moderna claims quite a broad pipeline. In its pipeline, the biotech company has three candidates in phase 2 testing. It has the cytomegalovirus (CMV) vaccine mRNA-1647, the personalized cancer vaccine mRNA-4157 in partnership with Merck (MRK Stock Report), and AZD8601, a therapy targeting coronary artery disease, in partnership with AstraZeneca (AZN Stock Report). Whether the trials in Canada passes the regulatory approval, its potential from its collaboration with major pharmaceuticals could still hold promise. With that in mind, is MRNA stock a buy for the long haul?