2 main health stocks to buy in 2021 and beyond
If you’re looking for new stocks to add to your portfolio that can deliver sustained growth and continue to deliver returns in all kinds of markets, a great industry to consider is healthcare. While not all stocks in this sector perform equally in turbulent markets, many provide products and services that customers need regardless of the economy, which can strengthen the resilience of the market. portfolio of a long-term investor.
To that end, today we’re going to take a look at two high-growth companies in the healthcare industry. One is a leader in medical robotics while the other helps healthcare companies run their businesses more efficiently. Let’s get started.
1. Intuitive surgery
Pioneer of medical robotics Intuitive surgery (NASDAQ: ISRG) was founded in 1995 and has been a publicly traded entity for over two decades. Since the IPO, its shares have climbed more than 16,000%. In the past year alone, the stock has risen by over 40%. With its shares now trading at just under $ 1,000, it’s no surprise that the company is considering a stock split in early October.
The stock has skyrocketed for good reason. Intuitive dominates the global surgical robotics market (more than three-quarters, in fact), most notably with its da Vinci surgical system. His approach has become increasingly widely accepted – and therefore Intuitive’s revenue over the past decade has increased by almost 150% while net income has increased by around 114%.
And the business is just getting started. The global surgical robotics industry is expected to grow exponentially in the coming years as an increasing number of medical providers use these tools in minimally invasive procedures due to their efficiency, accuracy, and ability to generate more positive post-operative results, such as shorter hospital stays. care.
An investment in Intuitive Surgical could generate sustained returns for many years to come as it expands its presence in this multi-billion dollar industry and the dependence on surgical robotics continues to grow.
2. Veeva systems
Cloud solution provider Veeva Systems (NYSE: VEEV) It might not be a name that immediately comes to mind when thinking of the healthcare industry, but it’s a compelling choice for long-term investors to consider. The company helps healthcare companies, ranging from known pharmaceutical giants to smaller life science entities, store their information efficiently.
Veeva customers seem to enjoy what they do. The company has a long and respectable history of growth, having increased revenue by over 160% and net profit by almost 390% over the past five years.
And the company stays on track. For the first half of its 2022 fiscal year (ended July 31), Veeva announced an increase in revenues of approximately 29% compared to the previous year. This is due to a 28% increase in its subscription services as well as a 33% increase in its professional and other services. Net income has increased by about 25% over the same period.
Veeva’s stock isn’t cheap, trading at around $ 285 a share and a price-to-sell (P / S) ratio of around 26. But it’s also safe to say that this type of valuation is something that investors expect from stocks. in the fast-growing SaaS space. The company’s shares have appreciated steadily over the years – and even at its current premium valuation, Wall Street believes the stock is up as much as 40% over the next 12 months.
Finally, demand for Veeva’s products and services is probably going nowhere, and its list of customers, including big names like Merck, Eli lilly, and Bayer – is only growing. Veeva Systems is in stock for the long haul. And if you’re not excited about its current price, there’s no harm in dipping your toe into investing in fractions of shares of that stock right now.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.