One of the most difficult sectors to invest in is the healthcare sector. Not only do you have to be nuanced in the ways of the stock market but you also have to have a deep understanding of medicines, machines, and biology in general.
Whether you were looking at medical instruments and devices or biotechnology stocks the goal is always the same thing. Investors are looking for what will work today and tomorrow and how to be best positioned for down the road.
One stock that is getting a lot of attention is Hims & Hers HIMS. This company delivers medicine discreetly to your door but has been running hard ever since it started including GLP1 weight loss drugs. Savvy investors know that there is a shortage of GLP which allows HIMS to be in this space, but it won’t last forever. There is a significant short interest position on the stock, but that hasn’t slowed investors from gobbling up shares.
In the video attached to this article we take a look at HIMS.
Another aspect that must be understood is medical devices. Veracyte VCYT is a Zacks Rank #1 (Strong Buy) that has Zacks Style Scores that will attract growth investors. The Zacks Style Score for value is an F while the Zacks Style Score for Growth is an A. I like to say that when I see that type of divergence in the style scores I know I am on the right path as an aggressive growth investor.
Veracyte VCYT is profiled in the video that is related to this article.
Drugs that pass the rigorous testing of Phase I, Phase II and Phase III become commercialized and many go on to post enormous profits. At some time, however, the FDA allows for a generic equivalent to be produced and sold. BridgeBio Pharma BBIO is a company that does just that. The stock is currently a Zacks Rank #2 (Strong Buy) and with inflation eating away at consumers wallets, the likelihood of switching to a generic (when available) is very strong.
Now all of this is very complex and can be overwhelming for regular investors. To solve this problem Zacks has a service called Healthcare Innovators and is run by Kevin Cook.
Kevin is an accomplished trader and he has embraced the healthcare sector like few others. He has obtained a deep understanding of biotechnology companies as well as medical device manufacturers and even the insurance providers in the space.
When we combine an accomplished trader with a thorough understanding of the healthcare sector we have a very powerful tool. Kevin leverages the Zacks Rank to help him make trades and long term investments in the best healthcare stocks.
Be sure to check out Healthcare Innovators at www.Zacks.com.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention.
Veracyte, Inc. (VCYT) : Free Stock Analysis Report
BridgeBio Pharma, Inc. (BBIO) : Free Stock Analysis Report
Hims & Hers Health, Inc. (HIMS) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
