Healthcare, one of the largest and most complex sectors, is comprised of a broad range of companies that sell medical products and services. The healthcare sector includes companies that sell drugs, medical devices, and insurance, as well as hospitals and healthcare providers. Some of the largest healthcare companies in the world include UnitedHealth Group Inc. (UNH), Pfizer Inc. (PFE), and Abbvie Inc. (ABBV). Several healthcare companies have received U.S. Emergency Use Authorization (EUA) to develop either tests or treatments for COVID-19, helping to fuel optimism about their shares.1
Healthcare stocks, as represented by the Healthcare Select Sector SPDR ETF (XLV), have performed on par with the broader market. XLV has provided investors with a total return of 18.5% over the past 12 months, just slightly above the Russell 1000’s total return of 18.4%, as of October 19, 2020.2 The statistics in the tables below are as of October 20.
Here are the top 3 healthcare stocks with the best value, the fastest growth, and the most momentum.
Best Value Healthcare Stocks
These are the healthcare stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
Source: Investopedia