In this article, we will be taking a look at 11 hot healthcare stocks to buy now. To skip our detailed analysis of the healthcare sector, you can go directly to see the 5 Hot Healthcare Stocks To Buy Now.
Healthcare is a vital part of daily living for everyone, whether it be to cure an illness or to ensure that you stay healthy through prompt checkups and consistent care for yourself. As a result, healthcare companies are among those that remain ever popular among investors and consumers alike because they are the type to never go out of fashion since we will always need medical care. However, in today's tech-dominated market, many investors may be concerned about the prospects for other sectors, including healthcare, and their performance through the end of the year and into 2024.
"We Could Really Use Some Strength in the Downtrodden Healthcare Sector"
On November 30, CNBC's Jim Cramer discussed his opinions on the healthcare sector on 'Mad Money,' most notably about what is holding the healthcare sector back and how one can navigate a tech-dominated market. Here are some of his comments:
"First, we are talking about a whole sector that's in the crosshairs of the US government because we're headed into an election year. The entire election may actually hinge on the cost of things going too high, even as it is going lower according to all indicators. Of course, if you're going lower from a much higher base than pre-pandemic, and lower inflation simply means that price are rising more slowly, they're not falling, it won't cut it. And that make's healthcare a natural whipping boy for the government."
So, according to Cramer, one factor holding back the healthcare sector today is the involvement of the government in the sector in preparation for the upcoming elections in the US. A CNBC article from December 7 highlighted how President Biden's administration had seized the patents of several costly medications to ramp up its efforts to slash drug prices and promote competition in the pharmaceutical industry as well. Biden has also been working on making lower drug prices a pillar of his healthcare agenda and reelection strategy. Such a move thus serves as a good example of the government involvement in the healthcare sector noted by Cramer. An implication of such a move by the Biden administration can be the slowdown in the healthcare sector.
Another trend Cramer noted that somewhat explains the healthcare sector slowdown is the fact that many people today are continuing to hold back when it comes to going for non-urgent surgeries. Here's what Cramer had to say on this and how that impacts medical device companies in the healthcare sector:
"Finally, the medical device business... crushed during COVID when people decided to hold of on all sorts of non-urgent surgeries. The strangest thing is, they're still holding off. The numbers never come back. Very hard to figure. Whatever the case, the healthcare group seems a pretty unlikely candidate to help the bullish cause."
Healthcare and Tech
Despite the above, the fact that technology today is continuing to evolve and expand its horizons means that other sectors, like healthcare, will also benefit instead of just being overshadowed by a massive tech rally in the market. On November 30, Robert Garrett, the CEO of Hackensack Meridian Health, joined CNBC to discuss the impact of artificial intelligence (AI), in particular, on the healthcare sector. Here's what he had to say:
"I see AI as the most profound technology in the world today. If you think about it from a healthcare perspective, whether it's helping doctors diagnose disease earlier, helping more people enroll in clinical trials, there's no question that AI can improve healthcare in remarkable ways."
In light of the above, despite the current slowdown in the healthcare sector, investors can treat this as a moment to consider some hot healthcare stocks to buy now as plausible additions to their portfolios since tech like AI is bound to rapidly improve healthcare companies and their products. The present slowdown can be seen as an opportunity to buy stocks like Eli Lilly and Company (NYSE:LLY), UnitedHealth Group Inc. (NYSE:UNH), and Johnson & Johnson (NYSE:JNJ) before they blow up after incorporating advanced technology in their operations and products. Considering this, we have compiled a list of some hot healthcare stocks to buy now. These include some of the best long-term healthcare stocks and cheap healthcare stocks as well.
11 Hot Healthcare Stocks To Buy Now
A healthcare professional preparing a vial for a patient in need of biotechnology services.
Our Methodology
We used a stock screen to find healthcare stocks with a 3-month average volume of over five million and ranked the stocks on this basis from the lowest to the highest volume to show the level of demand for these stocks as of December 27. We have also used Insider Monkey's hedge fund data for the third quarter to show the number of hedge funds holding stakes in them.
Average 3-month Volume as of December 27: 11.4 million
Number of Hedge Fund Holders: 6
Tempest Therapeutics, Inc. (NASDAQ:TPST) is a clinical-stage oncology company that develops small molecule therapeutics combining tumor-targeted and immune-mediated mechanisms to treat tumors. The company is based in Brisbane, California.
Joseph Pantginis at HC Wainwright & Co. maintained a Buy rating and a $47 price target on shares of Tempest Therapeutics, Inc. (NASDAQ:TPST) on October 11.
Six hedge funds were long Tempest Therapeutics, Inc. (NASDAQ:TPST) in the third quarter, with a total stake value of approximately $592,500.
Average 3-month Volume as of December 27: 12.1 million
Number of Hedge Fund Holders: 14
Soleus Capital was the largest shareholder in C4 Therapeutics, Inc. (NASDAQ:CCCC) at the end of the third quarter, holding 2.7 million shares in the company.
C4 Therapeutics, Inc. (NASDAQ:CCCC) is a biotechnology company based in Watertown, Massachusetts. The company develops therapeutic candidates to degrade disease-causing proteins to treat cancer, neurodegenerative conditions, and other diseases.
As of December 13, Bradley Canino at Stifel holds a Buy rating and a $12 price target on shares of C4 Therapeutics, Inc. (NASDAQ:CCCC).
There were 14 hedge funds long C4 Therapeutics, Inc. (NASDAQ:CCCC) in the third quarter. Their total stake value in the company was $19.8 million.
Like Eli Lilly and Company (NYSE:LLY), UnitedHealth Group Inc. (NYSE:UNH), and Johnson & Johnson (NYSE:JNJ), C4 Therapeutics, Inc. (NASDAQ:CCCC) is a hot healthcare stock to buy now.
Average 3-month Volume as of December 27: 12.78 million
Number of Hedge Fund Holders: 31
On December 22, Daniela Bretthauer at HSBC initiated coverage on shares of Walgreens Boots Alliance, Inc. (NASDAQ:WBA) with a Hold rating and a $27 price target.
Based in Deerfield, Illinois, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is a drug retail company that operates in the US, the United Kingdom, Germany, and internationally. It operates through three segments: US Retail Pharmacy, International, and US Healthcare.
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) was spotted in the 13F holdings of 31 hedge funds at the end of the third quarter, with a total stake value of $459 million.
Marshall Wace LLP was the most prominent shareholder in Walgreens Boots Alliance, Inc. (NASDAQ:WBA) at the end of the third quarter, holding 5.4 million shares in the company.
Average 3-month Volume as of December 27: 14.2 million
Number of Hedge Fund Holders: 65
Two Sigma Advisors was the most prominent shareholder in Bristol-Myers Squibb Company (NYSE:BMY) at the end of the third quarter, holding 6.6 million shares in the company.
A Buy rating and a $68 price target were maintained on shares of Bristol-Myers Squibb Company (NYSE:BMY) on December 27 by Geoff Meacham at Bank of America Securities.
Bristol-Myers Squibb Company (NYSE:BMY) is a pharmaceutical company based in New York. It discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products across the globe.
We saw 65 hedge funds long Bristol-Myers Squibb Company (NYSE:BMY) in the third quarter. Their total stake value in the company was $1.9 billion.
7. Cardio Diagnostics Holdings, Inc. (NASDAQ:CDIO)
Average 3-month Volume as of December 27: 14.45 million
Number of Hedge Fund Holders: 4
Four hedge funds were long Cardio Diagnostics Holdings, Inc. (NASDAQ:CDIO) in the third quarter, with a total stake value of approximately $51,900.
Cardio Diagnostics Holdings, Inc. (NASDAQ:CDIO) is a biotechnology company based in Chicago, Illinois. It uses artificial intelligence-powered precisions to develop cardiovascular medicines, among more.
Average 3-month Volume as of December 27: 15.45 million
Number of Hedge Fund Holders: 17
Tilray, Inc. (NASDAQ:TLRY) is a pharmaceutical company based in Leamington, Ontario, in Canada. The company researches, cultivates, processes, and distributes medical cannabis products internationally.
In total, 17 hedge funds were long Tilray, Inc. (NASDAQ:TLRY) in the third quarter. Their total stake value in the company was $84.2 million.
Like Eli Lilly and Company (NYSE:LLY) and UnitedHealth Group Inc. (NYSE:UNH), Tilray, Inc. (NASDAQ:TLRY) is among the hottest healthcare stocks to buy now.
