Healthcare, one of the largest and most complex sectors, is composed of a broad range of companies that sell medical products and services. The healthcare sector includes companies that sell drugs, medical devices, and insurance, as well as hospitals and healthcare providers. Some of the largest healthcare companies in the world include UnitedHealth Group Inc. (UNH), Pfizer Inc. (PFE), and AbbVie Inc. (ABBV).
The healthcare sector has caught investors’ attention since some of these companies have received regulatory approval for drugs to treat COVID-19 and begun distributing vaccines. Other companies are rushing to develop and win approval for their own COVID-19 drugs while others are supplying products to test for and manage treatments of the virus.
Healthcare stocks, as represented by the Health Care Select Sector SPDR ETF (XLV), an exchange-traded fund (ETF), have outperformed the broader market. Healthcare stocks posted a total return of 13.1% over the past year compared to the Russell 1000’s total return of 9.6%. These market performance figures and the statistics in the value and momentum tables below are as of Feb. 22, 2022. The statistics in the growth table are as of Feb. 23, 2022.
Here are the top three healthcare stocks with the best value, fastest growth, and most momentum.
These are the healthcare stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you’re paying less for each dollar of profit generated.
Best Value Healthcare Stocks
Market Capitalization (Market Cap) ($B)
12-Month Trailing P/E Ratio
Sage Therapeutics Inc. (SAGE)
Bio-Rad Laboratories Inc. (BIO)
Walgreens Boots Alliance Inc. (WBA)
Sage Therapeutics Inc.: Sage Therapeutics is a biopharmaceutical company that develops novel therapies for people with debilitating brain disorders. The company targets diseases and disorders of the brain within key areas…..