New drugs and devices change Healthcare with a rapidity seldom seen in history. Top healthcare stocks involve various sectors of the vast healthcare industry. For example, it ranges from pharmaceuticals to facilities to products improving the lives of patients worldwide.
The Top Healthcare Stocks for 2022
No. 4 AbbVie (NYSE: ABBV)
Global pharmaceutical company AbbVie was founded in 2013 when it was spun off from Abbott Laboratories. In 2021, this top healthcare stock generated revenue of $56.2 billion, with net income of $11.54 billion.
AbbVie owns Allergan, whose best-known product is Botox®. While this neurotoxin treats a variety of conditions, it is virtually synonymous with anti-aging injections. The world’s best-selling drug, Humira®, used to treat several forms of arthritis and Crohn’s disease, is an AbbVie product. However, Humira will lose patent exclusivity in the U.S. next year, and that is its largest market.
Other top AbbVie medications and products include:
- Androgel®
- Armour® Thyroid
- CoolSculpting®
- Estrace® cream
- Lexapro®
- Juvederm®
- Kybella®
- Synthroid®
In the past, AbbVie manufactured and distributed Vicodin®, but the company no longer manufactures or distributes any opioids.
In October 2021, the FDA approved VUITY, the first and only eyedrop to treat presbyopia, or age-related blurry near vision. Presbyopia is a common eye issue, with the majority of those age 40 and up affected eventually. This once-daily prescription treatment should prove a game-changer for a large segment of the population. AbbVie vice chairman and president Michael Severino, M.D. said, “We believe [VUITY] will change the way people and their eye doctors approach presbyopia.”
No. 3 Eli Lilly and Company (NYSE: LLY)
Headquartered in Indianapolis, Indiana, Eli Lilly and Company has been in existence since 1876. Its namesake, Colonel Eli Lilly, was a Civil War veteran. In that time, this top healthcare stock has developed more than 100 medications, including household names and those that changed the world. These include…
- Cialis® (tadalafil)
- Cymbalta® (duloxetine delayed-release capsules)
- Effient® (prasugrel)
- Evista® (raloxifene hydrochloride)
- Prozac® (fluoxetine)
In 1923, Lilly developed the first commercially produced insulin. Now, let’s fast forward to today’s LLY. In February, Lilly announced an agreement with the U.S. government. It will supply up to 600,000 doses of its investigational drug bebtelovimab for at least $720 million. The drug neutralizes the omicron variant of COVID-19, as per pseudovirus and authentic virus data.
On May 13, 2022, the FDA approved Lilly’s Mounjaro™ injection. This is the first and only GIP and GLP-1 receptor agonist for the treatment of adults with type two diabetes. The drug has another benefit, although it was not approved for this purpose, significant weight loss.
In its pipeline, Lilly has SURMOUNT-1 (tirzepatide), a drug designed for weight loss. In clinical trials, patients taking SURMOUNT-1 lost up to 22.5% of their body weight compared to those taking a placebo.
On April 28, Lilly announced its first-quarter 2022 financial results. Revenue growth increased by 15%, with volume growth of 20%. Revenue from COVID-19 antibodies grew by $660 million. Excluding that revenue, revenue grew by 10%. Chairman and CEO David A. Ricks said, “With the depth of our pipeline, and growth of our medicines in the market, we are well-positioned to help address health challenges in areas of significant unmet medical need, such as obesity, Alzheimer’s disease and cancer.”
No. 2 HCA Healthcare (NYSE: HCA)
For more than 50 years, HCA Healthcare has operated healthcare facilities in the U.S. and the U.K. Currently, this top healthcare stock is comprised of 182 hospitals and more than 2,300 care sites in 20 states and the U.K. Such sites include…
- Diagnostic and imaging centers
- Freestanding emergency rooms
- Hospitals
- Physician clinics
- Surgery centers
- Urgent care centers
- Walk-in clinics
In addition, HCA Healthcare serves 35 million patients annually.
The company’s first-quarter 2022 results show revenues of $14.945 billion. Net income attributable to HCA Healthcare, Inc. totaled $1.273 billion, or $4.14 per diluted share. During this quarter, same facility admissions increased 2.1% and same facility equivalent admissions increased by 5%. Cash flows from operating activities were $1.345 billion. Adjusted EBITDA totaled $2.944 billion, compared to $3.052 billion in the first quarter of the previous year. In addition, as of May 18, HCA’s 52-week high and low stock price ranged from $279.02 to $199.76.
No. 1 Medtronic (NYSE: MDT)
With U.S. headquarters in Minneapolis, Minnesota, Medtronic is the world’s largest medical device maker as well as one of the top healthcare stocks. In 2015, the company moved its global headquarters to Ireland. To clarify, it did this after the acquisition of rival Covidien via a $50 billion corporate inversion. This controversial practice was supposed to reduce the company’s tax bills. On the other hand, the 2017 tax reform bill meant the company faced higher taxes.
Medtronic’s products address nearly every aspect of the human body. For instance, this includes the cardiovascular, gastrointestinal, neurological, respiratory and urological systems. Its solutions treat more than 70 health conditions, from diabetes to Parkinson’s disease. For instance, among its best-known products are pacemakers, insulin pumps and portable ventilators.
The company received widespread backlash regarding its decision not to exit Russia after the invasion of Ukraine. However, on April 22 Medtronic issued a press release condemning the invasion. In addition to stating it is continuing to support essential business activities in Russia “that supply products to save and sustain lives of patients.” However, it will not make any new investments, conduct clinical trials or conduct promotional activities in Russia.
The company reported its third-quarter 2022 results on February 22. Its revenue of $7.8 billion was flat year-over-year. Third-quarter GAAP net income and diluted earnings per share (EPS) were $1.480 billion and $1.10, respectively, both increases of 17%. Third- quarter U.S. revenue of $3.939 billion, representing 51% of company revenue, was flat year-over-year. As a result, Medtronic was affected by the resurgence of COVID-19 in this quarter. Therefore, causing a shortfall in revenue expectations, according to Chairman and CEO Geoff Martha. Additionally, he adds that healthcare procedures should “reaccelerate” post-Omicron.
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