Investing in healthcare stocks is often viewed as a safe option due to their low correlation with global macro conditions and resilient demand for the sector’s products and services. Further, advancements in technology and new treatments for chronic conditions reflect the sector’s growth prospects. In addition, many healthcare companies offer reliable dividend payouts, making them appealing to income-oriented investors.
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Using the TipRanks Stock Screener tool, we have identified five stocks that have received Strong Buy ratings from analysts, with price targets suggesting over 15% upside potential in the next 12 months. These stocks also carry Outperform Smart Score (i.e., 8, 9, or 10) on TipRanks, indicating that these stocks may continue to beat the market.
Let’s take a look at five such stocks that investors can consider.
- UnitedHealth (UNH) – This healthcare company offers a wide range of health insurance services. The stock has an average price target of $624.63, which implies a 23% upside potential. Also, the stock has a Smart Score of eight. Last week, a Top-rated analyst, John Ransom, from Raymond James, reiterated a Buy rating on the stock.
- Thermo Fisher (TMO) – This company provides scientific instruments, reagents and consumables, and software services. Its average price target of $656.89 implies a 26.6% upside potential from the current levels. TMO stock carries a Smart Score of nine.
- Abbott Laboratories (ABT) – Abbott is known for developing medical devices, diagnostics, and nutritional products. The stock’s average price target implies an upside potential of 18.5%. Also, ABT has a Smart Score of eight. Last week, five-star analyst Larry Biegelsen from Wells Fargo maintained a Buy rating on the stock.
- Summit Therapeutics (SMMT) – This biopharmaceutical company develops therapies for infectious diseases. Analysts currently see an upside potential of 94% in the stock. Also, it has a Smart Score of “Perfect 10.”
- Sarepta Therapeutics (SRPT) – This biotechnology company develops genetic medicine to treat rare neuromuscular diseases. SRPT stock’s average price target implies an upside of 51.7%. It has a Smart Score of eight.
