There are several types of medical stocks to buy now. Due to the broadness of healthcare, many sectors can build a diverse portfolio. Medical stocks are growing exponentially because of the aging society and advancements in technology. In fact, healthcare stocks serve as 10% of the Nasdaq Composite Index. More so, 1/6 of the companies in the Dow Jones Industrial Average Index are medically based. As an investor, you should carefully pick stocks within this industry. If you are concerned about what stocks should I invest in, read on to learn about the different types of medical stocks to buy now.
One type of medical stocks to buy now are pharmaceutical stocks. Major pharma companies manufacture prescription and over-the-counter drugs. Of course, this creates a stable stream of revenue and huge opportunities for long-term investors. Annually, the pharmaceutical industry brings in trillions. Reports show the industry has experienced a 3% compound annual growth rate since 2014. With the speedy approval of drugs and the increase of consumers, pharmaceutical stocks are a great type of medical stocks to buy now.
Medical Equipment Stocks
Another type of healthcare stocks to invest in now are medical equipment stocks. The medical equipment industry provides items that are required for healthcare advancements. This stock can experience a rise when announcing positive results from a trial or approval from the FDA. The global medical equipment market is projected to grow at an annual success rate of over 5% in the next few years. As modern medicine advances, medical equipment stocks are a great investment to add to your portfolio.
Biotechnology assets are an undervalued medical stock to invest in now. This industry develops diagnostic technologies and drugs for health-related treatment. For safer finance opportunities, invest in biotech companies with multiple drugs under development. Scientific advances such as stem cell research and targeted cancer therapies are creating amazing opportunities for investors on long-term returns. Certainly, biotech stocks are great to invest in now because of the possible future earnings and opportunities it opens for medical discoveries.
Health Insurance Stocks
A promising asset to invest in now is personal and small business health insurance stocks. Since health coverage is predominant in everyone’s life, returns on investments are considered industry standard. The stock benefits when companies diversify to adjacent businesses that present high-growth opportunities. Diversification also reduces the stock’s exposure to financial challenges. Of course established health insurance firms rarely face disruption or new competitors, making them a secure low-risk investment. Certainly, health insurance stocks are a profitable market instrument to buy now.
Healthcare Facility Stocks
Of course, healthcare facility stocks are another great way to invest in medical stocks right now. With the world reopening, healthcare facilities are becoming more utilized, generating more revenue. Healthcare facilities are also changing the way they handle patient records and operating systems. These companies are building new hospitals, senior living, assisted living and memory care to meet the aging population needs. It is the perfect time to invest in medical facilities because they are about to gain more patients. Certainly, healthcare facility stocks are a great way to invest today.
There are several types of medical stocks to invest in now. Pharmaceutical stocks are beneficial because of their stable stream of revenue and huge opportunities for long-term investors. Medical equipment stocks are projected to grow an annual rate of 5% in the next couple of years, making now a great time to invest. Biotechnology stocks are creating amazing opportunities for investors on long-term returns. Health insurance stocks have a low-risk rate due to the infrequency of competitors. Facilities and other healthcare business stocks are on the up and up, making it a smart time to buy. Follow the points highlighted above to learn about the types of medical stocks to invest in now.