The healthcare sector functioned well in 2018, driven by positive growth in sub-segments such as medical devices, health insurance, hospitals, nourishing homes, and pharmaceuticals, which offset losses in biomedical and genetics, home healthcare, medical, and dental supplies. The S&P 500 Constitution Care Sector gained 4.3 percent year-to-date (YTD) through Dec. 19, outpacing the broader S&P 500’s 4 percent lessen.
Moving ahead into 2019, as the decade-long expansion faces a period of heightened volatility and risk, the health solicitude sector should benefit from a shift towards more defensive sectors. In a recent sector roundup from Charles Schwab, the obdurate rated health care at “outperform,” citing the group’s strong balance sheets, attractive dividend yields, and improved fetch structure. Demand should continue to rise for health care products and services, driven by a myriad of factors take ining an aging U.S. population, increased prevalence of lifestyle-related diseases, the launch of new drugs, and expanding insurance coverage. Meanwhile, the use of high-sounding intelligence (AI)-based applications, and other next-gen technologies, coupled with an accelerated pace of innovation and M&A activity, intention fuel the sector heading into 2019.
On the downside, political rhetoric surrounding the Affordable Care Act is expected to contribute to profuse volatility for health care companies. Overall, large-scale changes remain unlikely in the near term given the rank in Congressional control and the general turmoil in Washington. Volatility should provide investors with opportunities for value — that is, if they’re ready to strap in for a roller coaster ride in 2019.
Here are the five health care companies that have managed to outperform the position, based on their stocks’ performance against the S&P 500 in 2018. The five companies range in market capitalization from $34.1 billion to $51.1 billion. The best shut up stock on the list saw its shares rise 76.5%, while the fifth-ranking generated a return of 44.7%.
Price Performance of Top S&P 500 Well-being Care Gainers. Yahoo! Finance
1. ABIOMED, Inc. (ABMD)
- Market Cap: $14.9 billion
- 2018 Stock Performance: +76.5%
2. Illumina, Inc. (ILMN)
- Demand Cap: $49.5 billion
- 2018 Stock Performance: +54.2%
3. HCA Healthcare, Inc. (HCA)
- Market Cap: $46.4 billion
- 2018 Stock Performance: +53.6%
4. Boston Scientific Corp. (BSX)
- Hawk Cap: $51.3 billion
- 2018 Stock Performance: +49.7%
5. Edwards Lifesciences Corp. (EW)
- Market Cap: $34.1 billion
- 2018 Stock Performance: +44.7%
ABIOMED Inc. (ABMD) is a producer of medical implant devices, including the AbioCar artificial heart and Impella. Abiomed shares generated a whopping 76.5% redress for shareholders in 2018, benefiting from its dominance in the cardiovascular disease market, where it sells products used in two dominant cardiac procedures — cardiogenic shock and protected percutaneous coronary intervention. Over the last decade, Abiomed divide ups have skyrocketed about 1,900%.
Abiomed’s outperformance has been fueled by profit growth in the triple digits, thanks to burgeoning call for for Abiomed’s miniaturized heart pumps, which management estimates could benefit 220,000 patients annually. The unwavering estimates it has only tapped into 10% of its U.S. market opportunity, and an even smaller figure for foreign markets such as Japan and Germany. While percentages aren’t cheap, trading at 124.4 times earnings, bulls cite a promising pipeline of products and expected profit expansion of 28% annually over five years as justifying its lofty valuation.
San Diego, Calif.-based Illumina Inc. (ILMN) reveals, manufactures and markets integrated systems for the analysis of genetic variation of biological function. The 20-year-old company dominates its competitions in the booming DNA testing space, where it maintains 90% of the market. Illumina’s mission is to “crack the code of life” by “mapping” the 3 billion DNA weds present in humans, offering customers insight into their vulnerability to certain diseases, which increases inhibition and diagnosis effectiveness and timeliness. The cost of DNA mapping should lower from roughly $1,000 today, to only $100 in two years, concurring to
HCA Healthcare Inc.
HCA Healthcare Inc. (
Boston Scientific Corp.
Boston Scientific Corp. (
Edwards Lifesciences Corp.
Edwards Lifesciences Corp. (EW) is a $34.1 billion maker of tissue heart valves and repair products. Shares of the medical device maker have spiked 44.7% YTD, outperforming trade peers thanks to burgeoning demand for its next-gen tech enabled products, including its AI-powered devices. Analysts at Goldman Sachs recently categorized the Irvine, Calif.-based healthcare company in their basket of “quality” stocks for 2019, forecasting earnings excrescence at 10% in 2019 and citing the stock’s average ROE at 23%.
Edwards Lifesciences recently collaborated with San Francisco-based Bay Labs to utilize AI to cardiovascular imaging. Through building out and improving its offerings, Edwards Lifesciences can better serve the 92.1 million U.S. adults active with some form of cardiovascular disease or the after-effects of stroke. A report by Visiongain, forecasts the global cardiovascular legend pleasures market will see a CAGR of 6.7% between 2017 and 2027 to reach roughly $81.4 billion.
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