In this article, we’ll look at the 10 best healthcare stocks for the recession. You can skip this part and go 5 Best Health Care Stocks in a Recession
The healthcare sector in 2022 outperformed the market despite headwinds and economic challenges. The data shows that the Health Care Select Sector SPDR exchange-traded fund (XLV) is down just 3.5% for the year, compared to a whopping 20% drop for the SPY. The entire session was highlighted by several positive stories from large and small pharmaceutical and biotech companies in terms of their pipelines. The healthcare sector also has many established players who have been providing benefits to their shareholders.
The health sector was one of the biggest losers in the outbreak of the coronavirus. But 2022 saw the biggest companies in the sector re-emerge as patients returned to doctors’ offices for research that skipped the days of the pandemic. According to a November 2022 report from the WSJ, the pandemic has generated nearly $150 billion in sales from new Covid-19 products, including diagnostics, vaccines and treatments. The report also quoted the CFO of UnitedHealth Group, who said at the conference that the company was “encouraged” to see the public’s rapid review.
Major health care stocks that have made gains in 2022 and are set to outperform this year include McKesson Corp., Cardinal Health and Cigna. You’ll see these stocks on our list, along with a few other players that are strong picks for recessions.
Health care stocks tend to hold steady while others flounder because these companies are often able to offer more money to customers during times of inflation. The healthcare sector is also receiving positive reviews from major Wall Street analysts. For example, in December, the investment firm Citi issued a weighted dividend and said:
“Although we are tempted to drop from last year’s best performance, this decision is in line with the safety of the sector.”
Our Way
In this article, we used the Finviz stock screener to find the largest medical companies that posted good results (at least 20% profit) in 2022. For each stock, we have mentioned the reasons for its growth and why it is a good choice. economic decline. The list is ranked in ascending order of the number of hedge funds that have shares. We used Insider Monkey’s database of 920 coins to measure that metric for each company.
The 10 Best Health Care Stocks in a Recession
10. Neurocrine Biosciences, Inc. (NASDAQ:NBIX)
Number of Hedge Fund Holders: 44
One of the top performers in the healthcare industry in 2022 was California-based Neurocrine Biosciences, Inc. (NASDAQ:NBIX). Neurocrine Biosciences, Inc. (NASDAQ:NBIX) makes treatments for neurological diseases. Neurocrine Biosciences, Inc. (NASDAQ:NBIX) is up nearly 40% over the past year. Last month, Neurocrine Biosciences (NASDAQ: NBIX) announced that the FDA approved its new drug application (sNDA) for valbenazine for the treatment of movement disorders associated with Huntington’s disease. Neurocrine Biosciences, Inc. (NASDAQ:NBIX) said that regulators will decide on the sNDA by Aug. 20, 2023. Neurocrine Biosciences, Inc. (NASDAQ:NBIX) jumped in November 2022 after Neurocrine Biosciences, Inc. (NASDAQ:NBIX) ) posted Q3 results and raised its FY’22 guidance for its drug Ingrezza, which is used to treat Tardive dyskinesia (TD). Funding for Neurocrine Biosciences, Inc. (NASDAQ: NBIX) in the third quarter came in at $387.9 million, beating estimates. Net sales during the period also jumped nearly 31% to $379.3 million.
Hedge funds are piling up on Neurocrine Biosciences, Inc. (NASDAQ:NBIX). As of the end of the third quarter, 44 funds in Insider Monkey’s database had reported on Neurocrine Biosciences, Inc. (NASDAQ: NBIX), compared to 39 shares in the previous quarter. The total value of these products was approximately $1.3 billion.
9. Cardinal Health, Inc. (NYSE:CAH)
Number of Hedge Fund Holders: 45
Cardinal Health, Inc. (NYSE:CAH) is one of the best health care stock picks for the recession. Cardinal Health, Inc. (NYSE:CAH) is an asset class, having increased its dividend for over 25 years without pause. Cardinal Health, Inc. (NYSE:CAH) will gain about 49% in 2022. In November, Bank of America upgraded Cardinal Health, Inc. (NYSE:CAH) to Neutral from Underperform, according to Cardinal Health, Inc. :CAH)’s medical unit. The upgrade came after Cardinal Health, Inc. (NYSE:CAH) has posted strong results for its Q1 FY23.
A group of analysts at BofA led by Michael Cherny said they expect the market for Cardinal Health, Inc. (NYSE: CAH) will benefit from stable volume and long-term potential from the flu season.
As of the end of the third quarter, 45 hedge funds tracked by Insider Monkey reported holdings in Cardinal Health, Inc. (NYSE: CAH), compared to 44 shares in the previous quarter. A senior employee of Cardinal Health, Inc. (NYSE:CAH) was Richard S. Pzena’s Pzena Investment Management, which had a $182 million stake in Cardinal Health, Inc. (NYSE:CAH).
Ariel Investment provided the following comments about Cardinal Health, Inc. (NYSE:CAH) in its Q3 2022 newsletter:
“Besides, a drug dealer is a drug dealer Company opinion Cardinal Health, Inc. (NYSE: CAH ) advanced during this period when a change in management was seen as beneficial for the shares. The administration proposed a new fiscal 2023 profit proposal and announced a plan to improve the healthcare sector. We are encouraged by these changes and think that CAH’s requirements and competitive advantage regarding regulatory oversight and drug monitoring will continue to improve. We believe that healthcare companies like CAH that focus on cost optimization and fostering excellence in all aspects of care will pay off in the long run. “
8. AmerisourceBergen Corporation (NYSE:)ABC)
Number of Hedge Fund Holders: 47
AmerisourceBergen Corporation stock price history For the fourth quarter, AmerisourceBergen Corporation (NYSE: ABC )’s adjusted EPS came in at $2.60, versus $0.02. Revenues in the segment rose 3.8% on a YoY basis to $61.17 billion, versus estimates of $610 million. In 2023, AmerisourceBergen Corporation (NYSE: ABC ) said its revenue is expected to grow between 6% and 8% on a constant basis.
AmerisourceBergen Corporation (NYSE: ABC ) pays new dividends. Back in November, it announced a dividend of $0.485/share, which was a 5.4% increase from the previous quarter’s $0.460. Forward dividend yield during that period reached 1.2%.
AmerisourceBergen Corporation (NYSE: ABC ) also saw increased interest from the smart investment in the third quarter. Of the 920 funds that Insider Monkey tracked, 47 had shares in AmerisourceBergen Corporation (NYSE: ABC ). The total cost of these products was $604 million.
7. United Therapeutics Corporation (NASDAQ:)UTHR)
Number of Hedge Fund Holders: 47
United Therapeutics Corporation (NASDAQ: UTHR ) is one of the best healthcare stocks to pick in the recession. The Maryland-based company is known for its pulmonary treatment. Shares of United Therapeutics ( NASDAQ:UTHR ) rose 12% after the company’s Q3 results beat analysts’ estimates. In the third quarter, United Therapeutics Corporation (NASDAQ:UTHR) GAAP EPS jumped 43.57% Y/Y to $4.91. Net income for the period increased by 16% to $516 million.
As of the end of the third quarter, 47 hedge funds tracked by Insider Monkey reported holdings in United Therapeutics Corporation (NASDAQ:UTHR). The total value of these products was $2.5 billion.
6. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX image)
Number of Hedge Fund Holders: 49
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a Massachusetts company based in Massachusetts. In December, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) received guidance from the FDA for an IND application for VX-522, an mRNA candidate for cystic fibrosis. The drug is intended for approximately 5,000 patients who do not benefit from a cystic fibrosis transmembrane conductance regulator (CFTR) modulator. Earlier this month, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) and Arbor Biotechnologies expanded their partnership under which Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) will acquire rights to Arbor’s disease-modifying technology up to three times.
As of the end of the third quarter, 49 hedge funds tracked by Insider Monkey said they had stakes in Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX). The total value of these products was $1.9 billion. The biggest investor in Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) among these investments was Jim Simons’ Renaissance Technologies which has a stake of $619 million in Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX). The second largest shareholder of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) according to our database was Ian Simm’s Impax Asset Management, with a value of $202 million.
Artisan Partners issued the following comments about Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) in its Q3 2022 newsletter:
“A Biotechnology Company Opinion of the company Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) dominates the less competitive cystic fibrosis (CF) drug market. In addition to CF’s strong revenue growth that has delivered better-than-expected results, good progress in its development pipeline has lifted shares. At the time of our Q2 2021 acquisition, the stock was under pressure due to regulatory hurdles and Vertex’s decision not to pursue VX-864 development late after unexpected results. VX-864 is designed to treat alpha-1 antitrypsin deficiency (AATD), which is a genetic disorder that is closely linked to childhood liver disease. Regardless of Vertex’s AATD pipeline, the company has nearly two decades of patent protection remaining on its CF franchise. Management is well-funded and focused on research and development. We believe that long-term growth is expected to be driven by the expansion of Vertex’s location and the expansion of treatments to younger age groups, with long-term profitability from the company’s diversified pipeline. “
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Disclosure: None. The 10 Best Health Care Stocks in a Recession was originally published on Insider Monkey.
