When thinking about investing in overseas stock, healthcare may not be an obvious choice for many people. However, the healthcare sector is one that is broader than most people care to think and just as lucrative, if not more so than the other popular areas. It consists of many different industries such as hospitals, pharmaceuticals and devices, and health insurers, to mention a few.
Several variables affect investment in this sector. Therefore, when thinking about investing in the healthcare system, it is crucial to keep the prevalent trends in mind. Some of the positive factors to consider household names advances, personalised medicine, the global reach of a disease, and the ageing population. Conversely, cost controls, the uninsured, consumerism and a single-payer system such as the government; are some of the negative trends in this sector.
Investing in this sector requires you to have more than just a decent knowledge on how to trade shares overseas. Investing here requires you to have a multifaceted approach that allows you to obtain a clear understanding of the underlying drivers. You need at the very least some knowledge of how the sector operates. Better yet, it would be wiser to get an excellent offshore sharebroker who can guide you through this process. This is especially necessary when investing in overseas shares such as those in the US healthcare sector.
Some of the US healthcare players that have made highlights this year through their stocks going up include Natera Inc, Abiomed Inc, Tenet Healthcare Corporation, Genesis Healthcare Inc.
Johnson and Johnson
When talking about highlights in the healthcare stocks in the US, Johnson and Johnson cannot fail to appear. Listed among the Fortune 500, Johnson and Johnson is a multinational, manufacturing company that deals in pharmaceuticals, medical devices, and consumer packaged goods. Founded in 1886, it now has over 250 subsidiary companies with operations in over 60 countries. Its products are sold all over the world, and its brands include many house hold names of first aid supplies and medications. Within the healthcare market, it is in the lead as it has annual sales higher than its relatives in the industry.
In the second quarter of 2018, the earnings results were better than what had been previously anticipated with cost per share at USD 2.10, as compared to the expected value per share of USD 2.07. Its dividend yields that stand at a high of 2.57% which is among the highest in the healthcare sector. The sales revenue for the second quarter of this year rose at USD 20.8 billion. This was an increase of over 10% from last year’s same quarter. The sales revenue also surpassed analysts’ estimates that stood at USD 20.2 billion. The company is on a bullish ascent and investment in its stocks would be a wise choice. Since June this year, the share price of this multinational company has been on the rise, and this has resulted in investors getting a return of more than 20% on their capital.
Some other US healthcare stocks that made highlights and are worth investing in include Vertex Pharmaceuticals and Exact Sciences.
This company is the leading player in the cystic fibrosis space in 2018. This is especially true now that its rival, Galapagos lost the race just two months ago. Vertex is focused on advancing its research pipeline within the cystic fibrosis space. It enjoys a near monopoly with no short-term rivals in sight, and this could result in robust cyclic fibrosis sales. This means more return on investment and fruitful results to investors. This year the company launched a new drug that reported USD 186 million in revenues alone in the second quarter. A total of over USD 740 million was published by the company to be net product revenues. This has been the primary growth driver of its 2018 sales.
Exact Sciences Corporation
Founded in 1995, Exact Sciences Corporation deals in molecular diagnostics. It had its initial focus on the early detection and prevention of colorectal cancer. In 2014 the company launched Cologuard, the first stool DNA test for colorectal cancer. The company has made a solid name for itself in the healthcare market with this screening test. Since the beginning of this year, its stock has jumped over 20% and over the last three months has racked up six buy ratings. There is a consensus among professional analysts on the potential of Exact Sciences, with some of the best predicting USD 1 billion in revenue over the next two years.
As you can see from the above, healthcare may be a good sector to pay attention to as you get into international share trading. Positive movements in the numerous factors can really push your earnings from the stocks you end. So before you shelve healthcare as a boring stock, consider a few of them. You are bound to find something that is definitely worth investing your hard-earned money in.