The resilience of the healthcare sector during an economic downturn makes it an appealing choice for investors. Furthermore, pharma companies’ race to develop groundbreaking therapies and vaccines reflects their potential for long-term growth. In addition to this, many healthcare companies boast consistent dividend payouts, making them attractive for income-oriented investors.
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Using TipRanks’ Stock Screener tool, we identified five healthcare stocks with the potential to outperform the market. These stocks have received a Strong Buy rating from Wall Street analysts and have an Outperform Smart Score (i.e., 8, 9, or 10) on TipRanks. Moreover, the analysts’ price targets reflect an upside potential of over 20%.
Here are the five key stocks that investors can consider.
- AstraZeneca (NASDAQ:AZN) – The global pharmaceutical company specializes in innovative treatments across various therapeutic areas, including oncology, respiratory, cardiovascular, and more. AZN stock’s price forecast of $80.80 implies a 22.5% upside potential. Moreover, it has an outperforming Smart Score of “Perfect 10.”
- Humana (NYSE:HUM) – Humana offers a range of healthcare products and services, including insurance plans and wellness programs. The stock’s average price target implies a consensus upside of 26.8%. Also, it has a top-notch Smart Score of “Perfect 10.”
- Sarepta Therapeutics (NASDAQ:SRPT) – Sarepta is a biotechnology company focused on developing precision genetic medicines to treat rare neuromuscular diseases. SRPT stock’s price forecast of $127.07 implies a nearly 35% upside. Also, its Smart Score of “Perfect 10” is encouraging.
- BridgeBio Pharma (NASDAQ:BBIO) – The biopharmaceutical company develops transformative medicines to address various genetic diseases and conditions. BBIO stock has an analyst consensus upside of 30.4% and a Smart Score of eight.
- Evolent Health (NYSE:EVH) – The company provides technology and services to support value-based care and population health management. The stock has an average price target of $45.33, which implies a 47.7% upside potential from current levels. EVH stock has a Smart Score of nine.
