Contributor, BenzingaApril 15, 2021 Updated: May 10, 2021
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Healthcare spending in 2018 was $3.6 trillion — that’s $11,172 per person — in the U.S. Healthcare is among the largest, most complex sectors in the country, and these company stocks can be a valuable addition to your financial portfolio.
Here’s a guide to growing your wealth by investing in healthcare companies on the stock market.
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If you’re an active day trader, you can also check out the daily updates on stocks under $5.
Overview: Healthcare Stocks
The healthcare sector includes a broad range of companies like hospitals, pharmaceuticals, insurance agencies and medical equipment manufacturers. Most of these services are in operation 24/7, so healthcare stocks can expose your portfolio to industries that operate throughout the year, uninterrupted.
Medical companies have stepped up research and development to find a vaccine in response to the pandemic. While major industries like banking, airlines and oil have been dumped by investors, several healthcare stocks have gained billions in capital to manufacture virus testing kits, personal protective equipment and ventilators to be distributed to hard-hit countries around the globe.
Due to these contributing factors, the S&P 500 healthcare sector rose by 9.5% in April 2020. It is currently on an upswing.
Best Online Brokers for Healthcare Stocks
You can track and trade the top healthcare stocks on major stock exchanges with an online broker. These innovative online platforms equip you with powerful tools to elevate your trading experience. If you are new to investing, we suggest browsing through these stocks under $20.
Take a look at these online brokers to get started.
Features to Look for in Healthcare Stocks
- Earnings per share: The earnings per share (EPS) of each stock is a good indication of the company’s profitability. EPS is calculated by taking the net income of the company and divided by the total number of its outstanding shares. A higher EPS means you stand to gain that much more from your investment.
- Yearly revenue: Companies generally publish reported earnings and revenue at the end of each quarter and at the end of the fiscal year. Compare the yearly revenue generated by each stock to assess its growth and potential returns.
- Medical innovations: Healthcare companies constantly research and develop new and improved ways to provide all types of care. Seek out information about medical breakthroughs that distinguish a healthcare company from its competitors before you invest.
Fortify Your Financial Health
Healthcare companies like hospitals and pharmaceuticals always operate in full swing. These stocks are not subjected to business cycles and can shield your assets when your other investments are going through a rough patch.
Looking for healthcare stocks by price? Check out the pages below.
- Stocks under $5 (Assumes price greater than $1)
- Stocks under $10 (Assumes price greater than $5)
- Stocks Under $20 ( Assumes price greater than $10)
Looking at stocks by industry? Review our other guides.
Don’t know where to start? Find a broker using Benzinga’s best brokerage guide.
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