Buy These 4 Healthcare Stocks After Reporting Better Than Expected Earnings Results
The healthcare industry has gained substantially since the onset of the COVID-19 pandemic. With the continuing spread of the virus, and an aging population, the demand for healthcare services is expected to remain robust. Therefore, we think healthcare stocks Johnson & Johnson (JNJ), Abbott (ABT), Anthem (ANTM), and Biogen (BIIB), which have each recently reported better-than-expected earnings results, could be ideal bets now. Read on.The benchmark stock indices have of late registered solid gains on the back of solid third-quarter corporate earnings. The Dow Jones rose for the third straight day to claim another record on October 26. The S&P 500 also rose to fresh highs that day. According to CNBC, 80% of S&P 500 companies that have reported earnings so far have beaten Wall Street expectations.
The healthcare industry has been in the limelight since the onset of the pandemic. Pharmaceutical and biotech companies that have developed COVID-19 therapies and vaccines have generated billions of dollars in revenues so far. In addition, digital healthcare is gaining traction, with telehealth companies reporting a more than doubling of visits for 2020. The robust usage and popularity of digital healthcare are expected to drive more investments in this space. According to FactSet, companies with higher international revenue exposure are expected to deliver higher earnings growth. For companies generating more than 50% of sales outside the U.S., their blended earnings growth rate is 44.3%, versus a 26.3% earnings growth rate by companies with more than 50% of sales inside the United States.
Johnson & Johnson (JNJ), Abbott Laboratories (NYSE:ABT), Anthem, Inc. (ANTM), and Biogen Inc. (NASDAQ:BIIB), each with a significant global presence, have reported better than expected earnings results. So, considering their fundamental strength, we think these stocks could be solid additions to cash in on the industry’s growth.
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