For new and experienced traders alike, there is no shortage of options when investing in global stock indices. London, New York, Frankfurt, and more – the world’s major exchanges are home to a variety of companies across virtually every sector and industry. The healthcare sector is no exception. Even in itself, there are choices to made when trading healthcare stocks. After all, it isn’t just drug companies. There are facility operators and care equipment manufacturers too.
Why have healthcare stocks grown over the past few years?
Healthcare is one of those industries for which there will always be demand. Every nation has a healthcare system in some form or another. And all of these call on the services of corporations who are actively engaged in the creation and supply of care and medical products. Yet, the past few years have seen an increasing appetite for investing in healthcare stocks. Why is this?
Well, one obvious reason is the Covid-19 pandemic. The return to ‘normal’ life after restrictions owes much to a concerted effort to develop effective vaccinations in double-quick time. The UK government enlisted seven suppliers as part of its vaccine roll-out – and it’s reasonable to think that will have benefited those suppliers from both a financial and reputational point of view.
Mind you, the continued reliance on healthcare solutions underpins that growth. It is a sector in which investors are bullish about its long-term potential – not just short-term opportunities. For the world as a whole, nearly 10% of GDP is spent on healthcare. That gives it a level of stability that some industries just can’t match up to. And that’s where investors draw much confidence.
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What are the best healthcare stocks to invest in?
CFD trading is a popular method for investors to capitalise on the rise of healthcare stocks. The choice is vast in terms of the companies you can add to your portfolio. But here is a look at five of the top-performing healthcare stocks that are well worth watching:
Johnson & Johnson
Johnson & Johnson (J&J) is a healthcare stock option you may be familiar more than most as it has a prominent consumer division – in addition to its pharmaceutical and equipment divisions. It has a market cap of around $466 billion and saw revenues increase in 2021.
A provider of healthcare products and insurance, UnitedHealth Group is regarded as one of the world’s biggest companies for revenue. The group’s Income, revenue, and total equity all went up in 2021, with its market cap sitting at $456 billion at time of writing.
Pfizer is a multinational corporation listed on the New York Stock Exchange with interests in the pharmaceutical and biotech sectors. It creates products used to help treat a range of conditions – including cancer, neurological conditions, and indeed Covid-19 (market cap $274 billion), according to Companiesmarketcap.
Based in Switzerland, Novartis is one of the world’s largest pharmaceutical companies – with an extensive portfolio of treatments that it develops and manufactures. Sales slowed during Covid-19, but the company’s performance remained resilience – with a market cap of $186 billion.
The history of Abbott Laboratories dates back to 1888. Today, its product portfolio comprises a range of diagnostics, devices, medicines, and nutritional products across various divisions. The company was also the first to develop a test for HIV in the 1980s (market cap $188 billion).