In the COVID-fueled year of 2020, health care stocks failed to keep up with the broader market advancing 11% while the S&P 500 as a whole rose 15.9%.
Even though the sector has arguably been the most important of the 11 sectors to global well-being amid the pandemic, that trend continued in the first quarter of 2021, with health care stocks rising just 3.3% compared with the S&P’s 5.8% gain.
We bring to you four potential healthcare stocks which are looking to break beyond boundaries and are looking at a rollicking time ahead in the year as the COVID’s fresh global outbreak continues to push the financial world in uncharred territories of investing.
1.CVS Health Corp. (CVS)
Entering 2021, CVS was primed to be one of the most important points of distribution for the COVID-19 vaccine, and it hasn’t disappointed. Through April 1, CVS had administered more than 10 million vaccine doses, with the company expecting the pace of vaccinations at its stores to rapidly increase, with the ability to give up to 25 million vaccine doses per month.
While the company’s latest quarterly results saw year-over-year net income fall, revenue rose and so did prescription volume. Its role as a vital player in resolving the raging pandemic should earn CVS brand loyalty with consumers, as well as some new customers. CVS rose 10.9% in the first quarter and pays a dividend of 2.6%.
Although the stock is at its peak at above $ 75, it is looking to go up much higher
DaVita is the largest dialysis provider in the U.S., and a value pick from the best health care stocks to buy for 2021.
The stock was an outstanding performer in 2020, rising 55%. But the price slipped 8.2% in the first quarter of 2021. DaVita’s valuation remains attractive, with the stock trading for just 17 times earnings, and analysts expect fairly impressive earnings per share growth of nearly 14% over the next year. Warren Buffett’s Berkshire holds a 33% stake in the company.
A valuation of $ 115 or below is certainly attractive.
3.Teladoc Health (TDOC)
Telehealth has been an emerging industry for years, but it truly burst onto the scene in 2020 as a sudden pandemic forced shutdowns and social distancing. Teladoc fit perfectly into that mold, and in 2020, revenue surged 98% year over year with total visits growing 156% to 10.6 million.
The company took a hit in the first quarter due to its growth profile and the rise of interest rates; the company also posted a larger-than-expected fourth-quarter loss, however, which helped send the stock down 9.1% in the first quarter.
Its valuations look attractive at USD 180 after scaling down from a 52 week high of over $ 300
4.Cigna Corp. (CI)
The last of the best health care stocks to buy for 2021 is health insurer Cigna, which rose 16.1% in the first quarter. This insurance giant, which boasts an $88 billion market cap, trades for less than 11 times earnings, while analysts expect more than 10% annualized earnings per share growth over the next five years.
The company expects revenue to rise modestly from $160.4 billion in 2020 to at least $165 billion in 2021, while the company’s debt-reduction plan has helped boost income, with the debt-to-capitalization ratio of 45.2% falling to 39.5% between 2019 and 2020.
The stock is trading on the upswing with a price of $ 250 and is looking to break away from its 52 weeks high in 2021
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