It’s no secret that global healthcare market is a very lucrative business. Pharmaceutical companies earn a lot from growing demand on drugs and healthcare insurers bank on aging population in US, Europe and Japan. Chronic diseases like diabetes and obesity are rampant in developed world and are giving a lot of opportunity to profit from these ailments. Opiod epidemic was recently singled out as a national public health emergency by president Trump and this bleak state of affair was legally caused by doctors prescribing lightly opiates for headaches, mood swings and “autism” (no such disease, get a grip). On the other hand life expectancy grows everywhere and new drugs can help in many, previously untreatable ailments. Whatever your outlook – good or bad, one thing is sure: pharmaceutical and drug companies are making a lot of money and 2018 will be even better year for their business. I always have these stocks in my portfolio, because they provide easy and stable profits, so take a look at my top healthcare companies to invest in current year:
4. Anthem – $antm
Anthem is largest US managed health care company with more than 50 000 employees and $85 billion in revenue, second to CVS only. Hard to miss on that one.
- They are profiting immensely from expensive American healthcare, and 1 year return from buying $ANTM stock was 57,4% – that outperforms NYSE several times.
- They pay dividends (1,39% last year, which adds to profit).
American healthcare is very expensive and that won’t change under Trump, who wants to cancel Obamacare, so they will still earn a lot in 2018. I highly recommend to buy it now. Don’t go with leverage though – x1-x2 is more than enough for long term investing.
3. Johnson & Johnson – $jnj
Johnson & Johnson is a medical devices, pharmaceutical and consumer packaged goods manufacturing company founded in 1886. I’m sure that you know this brand wherever you live, because their products are present everywhere, so you probably know their shampoo, Listerine mouthwash or Neutrogena cosmetics. They are globally recognized brand and component of S&P100 and S&P500. As such they have no problem in sustaining profits and are good idea for investors searching for a very safe source of passive income.
- 1-y-return was 24,4 % and most likely this 2018 will be even better for their results.
- They also paid good dividend (2,4%) this year so this adds to profits. Because of that, it’s very good company to hold it long term.
So I advise to buy and hold it at least 2-3 months with x1 leverage and close it whenever you want, for easy profits in 2018!
2. Pfizer – $pfe
Pfizer is considered one of the world’s largest pharmaceutical companies and there’s growing worldwide market for drugs, driven by aging US and European societies. They produce pharmaceuticals for a wide range of medical disciplines, including their famous (or infamous if you prefer) blue pill – Viagra.
- Huge and growing revenue of $52.82 billion and 100 000 employees guarantees steady gains from this stock and no chance for any sudden downtrend. This is a stock that you should buy if you want secure gains.
- $PFE had 12% return in 2017 and on top of that, they paid 3.76% dividend in 2017 – one of the best yield for large cap stock, so you can be sure that you can earn passive income in 2018 as well.
So I suggest you buying it at x1 leverage, especially if you want to allocate funds to large cap, low risk stock. Also, by buying this stock, you are investing in a company that helps people with erectile dysfunctions, and that’s a nice thing to do. Have a nice and rigid profits!
1. Aetna – $aet
Aetna offers healthcare, dental, pharmacy and similar insurance plans, and is one of the biggest US company to do so. Apparently, there is more money in shuffling insurance than in healthcare itself, because they have enormous income of $2.91 billion, with $63.17 bn in revenue.
- On December 3, 2017 it was announced that CVS would purchase Aetna, which would propel Aetna’s stock price up upon completion of acquisition. This transaction might be finished in next few months, so buy it now, wait for it and sell after the news (my guess is March-April 2018 maybe?).
- They have 23.1 million medical members and support 5700 hospitals, so it’s really substantial amount of US patients.
- Besides that. 47,27% return + 1,1% dividends: results speak for itself.
While generally I long most stocks without leverage, you might go with sensible x2 – x5, because Aetna’s growth was very even throught 2017, so it seems that this stock will steady grow in 2018 as well.
If you have other ideas for healthcare stocks, let us know in comments!