2016 wasn’t a banner year for stocks with the election causing so much anxiety and uncertainty. With Donald Trump’s pledge to scuttle the Affordable Care Act, many in the healthcare industry were particularly nervous as to what the future might hold. With the republicans now in power, major players in the industry had to rethink their whole investment strategy.
However, savvy investors will see this as an opportunity rather than a risk. With the aging baby boomer generation creating an increase in demand for healthcare services, there is just too much upside not to consider the healthcare industry as a great sector to invest in. Here are five healthcare stocks that look especially promising for 2017:
Celgene will Continue to rise in Value.
A major company in the biotech industry, Celgene’s myeloma treatment drug increased sales over 22 percent in the first three quarters of 2016. Analysts estimate that revenue will continue to rise at around 17 percent, with earnings per share to top 19 percent. While it is always difficult to predict a year’s growth, indications are that Celgene will continue to be a good buy for investors.
UnitedHealth Group Will Recover
Quest Diagnostics is the Steady Choice
It doesn’t take someone with an accredited MSN in nursing administration to realize that those who provide the back-office, behind-the-scenes support are critical to the healthcare industry. The cutting edge diagnostic tools Quest Diagnostics delivers has made it a cash cow – one that shares its good fortune with its shareholders. Quest Diagnostics has stated that it expects its 2017-20 revenue growth to approach 5% per year, making its stock definitely one to hold onto.
Stryker is Poised to Continue Growing in Revenue
One area not affected by the uncertainty brought on by the election is the medical equipment field. MSN administrators will continue to request that their facilities replace and upgrade their equipment, and Stryker is a major player. Due to some important acquisitions, Stryker’s revenue grew over 16% in the third quarter of 2016. With the chance that a 2.3% tax on medical device makers may be repealed, Stryker should extend its impressive record of 10 straight years of revenue growth.
Johnson & Johnson is the Safe Choice
Johnson & Johnson is the stock choice to provide a safety net for your healthcare investments. This blue-chip stock is one of the most valuable in the industry. With its diversification into consumer goods, pharmaceutical products, and medical devices, Johnson & Johnson should be the least affected by whatever changes come during the next few years. As long as Johnson & Johnson has been in business, it continues to find ways to continue to grow and earn. Its policy of reinvesting in itself makes it an excellent pick for 2017.
These are just a few of the healthcare stocks you will want to keep your eye on. For those who invest in the healthcare industry, life after Obamacare should be just fine in 2017 – as well as for many years to come.
