Top Health Care Stocks to Invest In Today
June 05 2019 - Why You Should Keep An Eye On These Leading Health Care Stocks By Investors Business Daily
The U.S. soon will spend nearly 20% of its gross domestic product on health care. This comes as health care costs outpace the rise in inflation.
So smart investors are looking to cash in by eyeing key health care stocks. Headlines abound for biotech and pharma stocks with cutting-edge medicines. But health care stocks actually comprise a broader swath of medical companies — many of which are behind the scenes.
All these health care stocks share several commonalities: A streak of bullish earnings growth, as well as high Composite and Relative Strength ratings. The CR measures key growth metrics while the RS Rating looks at a stock's 12-month performance against all other stocks.
These Are The Top 3 Health Care Stocks Today:
Veeva Systems (VEEV)
NeoGenomics Stock Leads Its Industry Group NeoGenomics makes genetic tests that look for cancer in a patient. The company leads its industry group of 24 medical services stocks. The industry group itself is a leader, ranking No. 31 out of 197 groups tracked by Investor's Business Daily.
In the first quarter ended March 31, NeoGenomics posted $95.58 million in total revenue. Of that, clinical services accounted for more than 90%, and grew north of 51%. Pharma service revenues rose more than 45% year over year, NeoGenomics said in a news release.
In terms of market cap, NeoGenomics is much smaller than peers Laboratory Corporation of America (LH), Quest Diagnostics (DGX) and Guardant Health (GH).
But shares have a best-possible CR of 99. The CR is a measure of a stock's key growth metrics. The company also has a RS Rating of 97 out of a top-possible 99. The RS Rating pits a stock's 12-month performance against all other stocks, putting NeoGenomics stock in the top 3%.
On a five-year basis, NeoGenomics earnings have grown 47%.
Veeva Systems Helps Other Health Care Stocks Veeva stock leads its group of health care stocks — a cohort of 19 companies working in medical software. The health care stock provides the cloud backbone for the life sciences industry. It offers a system to organize doctor information for pharma reps and clinical study data for companies.
The top-rated health care stock is also working to expand its offerings outside life sciences into other manufacturing-heavy industries.
On MarketSmith.com's list, Veeva stock ranks as No. 52. It has a five-year earnings per share growth rate of 45%. The company also has a top CR of 99 and a nearly perfect RS Rating of 98.
Veeva stock is an IBD 50 stalwart, where it ranks second.
The company's earnings per share have grown by at least double digits for the past 19 quarters.
Celgene Stock Is A Leader Among Biotech Stocks Shares of Celgene are ranked second among an industry group of more than 500 biotech companies, trailing only Incyte (INCY).
Celgene is soon to be acquired by Bristol-Myers Squibb (BMY) in a $74 billion buyout. The biotech company is a leader in cancer treatments. Its biggest moneymaker is Revlimid, a multiple myeloma drug that generated $2.58 billion in first-quarter sales.
Other key drugs from Celgene include cancer treatment Pomalyst and Abraxane which, together, brought in $843 million in revenue for the first quarter ended March 31. Psoriatic arthritis treatment Otezla generated $389 million in sales.
Celgene stock has a nearly perfect CR of 98 and a bullish RS Rating of 91.
Invest2Success Investment Advisory Stock Picks
Free Trial - Receive daily low-risk high-reward SP500 NYSE Nasdaq buy-long and short-sell stock picks that are experiencing strong increasing and decreasing earnings, that include buy sell entry, stop-loss, take profit area price targets, and trade management information to your email inbox.