Personal health and wellness is one of the many secular tailwinds for healthcare companies. Despite the rosy long-term prospects, short-term headwinds such as COVID inventory destocking have harmed the industry’s returns - over the past six months, healthcare stocks have collectively shed 8%. This drawdown was worse than the S&P 500’s 1% fall.
Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. Taking that into account, here are three resilient healthcare stocks at the top of our wish list.
Amgen (AMGN)
Market Cap: $145.4 billion
Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ:AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.
Why Are We Positive On AMGN?
- 14.1% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
- $34.13 billion in revenue gives its scale, which leads to bargaining power with customers because there are few trusted alternatives
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Amgen’s stock price of $270.45 implies a valuation ratio of 12.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Lantheus (LNTH)
Market Cap: $5.46 billion
Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.
Why Are We Fans of LNTH?
- Annual revenue growth of 34.3% over the past five years was outstanding, reflecting market share gains this cycle
- Free cash flow margin increased by 29.5 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Improving returns on capital reflect management’s ability to monetize investments
Lantheus is trading at $80.46 per share, or 11x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Centene (CNC)
Market Cap: $29.34 billion
Serving nearly 1 in 15 Americans through its government healthcare programs, Centene (NYSE:CNC) is a healthcare company that manages government-sponsored health insurance programs like Medicaid and Medicare for low-income and complex-needs populations.
Why Are We Positive On CNC?
- Solid 15.5% annual revenue growth over the last five years indicates its offering’s solve complex business issues
- Massive revenue base of $169.3 billion gives it meaningful leverage when negotiating reimbursement rates
- Earnings per share grew by 14.8% annually over the last five years and trumped its peers
At $59.50 per share, Centene trades at 7.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
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