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5 Best Healthcare Stocks to Buy in the United States
What are the best healthcare stocks to buy in the United States?
With so many stocks out there, it can be difficult to figure out which ones will have the biggest impact on your portfolio.
The following five best healthcare stocks have proven themselves as some of the best healthcare stocks, and they are also poised to continue outperforming over the next several years.
These best healthcare stocks currently have solid price-to-earnings ratios of 15 or less, while having high dividend yields of 4% or higher at the same time.
1- Hospital Corporation of America (HCA)
Hospital Corporation of America, based in Nashville, Tennessee, is a leading operator of general acute care hospitals and psychiatric facilities with 496 hospitals.
The company generated $40 billion worth of revenues last year. It has a Zacks Rank #3 (Hold). Its long-term earnings growth estimates stand at 10%.
It is also very popular among stock market traders with 1.39 million shares traded per day on average over last month (vs 1 million shares per day for its peer group).
Long-term return on equity stands at 20% compared to 18% for its peer group.
HCA is one of two publicly traded hospital operators along with Tenet Healthcare Corporation (THC) that operate numerous healthcare facilities through their subsidiaries and affiliates across all 50 states and Puerto Rico.
2-Tenet Healthcare Corp. (THC)
Tenet has been on a roll lately, with its stock price increasing by more than 26% over the past year.
To say Tenet has been successful would be an understatement the healthcare services provider boasts $8.7 billion in annual revenue and has grown its profits by 25% per year over the past five years.
The company is also very competitive on both a national and international scale; it ranks 12th among U.S.-based hospitals and is among one of two healthcare companies to earn four stars for its financial stability from Morningstar.
It’s no wonder Tenet just announced plans to expand into a new market: Birmingham, Alabama, where it will add 40 beds for psychiatric patients and begin construction on a $200 million hospital campus.
3-Universal Health Services Inc. (UHS)
Universal Health Services Inc. (UHS) has a market cap of $17.2 billion, and is based out of King of Prussia, PA.
UHS is a healthcare services company that provides hospitals and outpatient facilities with medical and surgical supplies, diagnostics and technology, staffing solutions, pharmacy services, physical medicine/rehabilitation therapy, behavioral health/substance abuse programs, ambulatory care centers and other related healthcare services to patients served by its facilities across 47 states.
This business’ operations are exposed primarily within its Hospital Operations segment; however it also manages additional non-hospital operations as well.
4-HCA Holdings Inc. (HCA)
Envision is involved in providing diagnostic and management services for patients.
The company provides services for various procedures including operating rooms, intensive care units, and diagnostic imaging equipment.
Envision reported earnings per share of $1.71 on revenues of $3.27 billion for its fourth quarter of fiscal year 2016 which ended March 31, 2016.
The consensus estimate was earnings per share of $1.70 on revenues of $3.25 billion according to Yahoo! Finance as accessed April 4, 2016.
5-Envision Healthcare Corp. (EVHC)
Envision is an integrated healthcare services company that provides a broad range of diagnostic and therapeutic services through its network of more than 500 locations.
The company’s primary focus is on emergency and outpatient services, but it also operates specialty hospitals that serve patients with acute care needs.
Envision’s rapid growth has placed it among market leaders when it comes to healthcare stocks for 2018, making it a great bet for investors looking for opportunities to profit from America’s increasingly outdated healthcare system.
In fact, Envision stands out as one of only four major public companies operating in all 50 states, which means its expanding operations have high potential for long-term growth as well.
Conclusion
I have covered top 5 best healthcare stocks here in detail.
Some of them are best suited for long-term investors while others are more suitable for traders looking to make short-term gains.
Another top pick is Regeneron Pharmaceuticals (REGN), which has an impressive pipeline and a strong track record of growth.
Several drugs on its R&D slate are expected to reach market during Q3, including Dupixent (dupilumab) which could reach a potential $2 billion by 2023 according to one estimate.
Overall, it’s a great investment with low risk that offers both short-term and long-term gains.