TL/DR –
The article lists the top performing healthcare stocks for June 2024, which include: Novavax Inc., CareDx Inc., NovoCure Ltd., Humacyte Inc., and Deciphera Pharmaceuticals Inc. The healthcare sector, which was heavily impacted by the COVID-19 pandemic, is currently experiencing a rebound, with weight-loss drugs like Ozempic being a key market trend to watch. The article emphasizes the benefits of investing in the consistently in-demand healthcare sector, but also highlights risks, such as its complexity and the role of legislation.
Top Health Care Stocks for June 2024
| Ticker | Company | Market Cap ($B) | Price ($) | 30-Day Return (%) | P/E Ratio |
|---|---|---|---|---|---|
| NVAX | Novavax Inc. | 2.2 | 15.50 | 263.6 | N/A |
Understanding the Health Care Sector
Health care experienced significant changes during the COVID-19 pandemic, such as insurance amendments and shifts in product demand. Factors like population growth, rapid technological advancements, and focus on specialty pharmacies are currently impacting the sector. Weight-loss drugs like Ozempic are gaining momentum due to the global obesity issue.
The health care sector’s profit pools are expected to witness a compound annual growth rate (CAGR) of 7% by 2027, reaching $819 billion from $583 billion in 2022.
Identifying the Best Health Care Stocks
In our search for the best health care stocks, we considered factors like the company’s listing on the Nasdaq or the New York Stock Exchange, stock price, daily trading volume, and market capitalization. From this pool, firms were ranked according to the highest 30-day percentage return. It’s worth noting that all top 10 firms based on 30-day return lack a P/E ratio due to not generating earnings or recording a loss.
Advantages and Disadvantages of Health Care Stocks
The health care sector benefits from consistent demand and opportunities for short- and long-term growth due to innovative technologies. However, the complexity of the sector, legislative influence, and unpredictability of success for new products or services pose challenges for investors.
While the health care sector offers potential for strong returns, stock prices are unpredictable, and past performance doesn’t guarantee future outcomes.
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