Best Stocks To Buy Right Now? 3 Health Care Stocks In Focus


Are These The Best Health Care Stocks To Buy As Pandemic Conditions Worsen?

Between an increasingly aggressive Fed interest rate hike plan, ongoing pandemic conditions, and inflation, the stock market is under pressure. As a result of all this, investors could be turning their attention towards the top health care stocks now. Accordingly, I could see this happening with the current state of the world. On one hand, you have the ongoing war in Ukraine placing prolonged pressure on global economies. Pair this with surging inflation and cyclical businesses across the board could continue to feel the heat. Because of this, investors could be turning towards more defensive plays in the market like health care stocks.

On the other hand, there are signs of a downturn in the fight against the coronavirus pandemic as well. Earlier on Wednesday, the World Health Organization (WHO) stated that Covid-19 remains a global public health emergency despite Covid deaths being below March 2020 levels. At the same time, the Biden administration is also extending the transportation mask mandate for another 15 days. In turn, the current situation with the pandemic could further drive demand for health care solutions.

As such, it would not surprise me to see investors looking out for notable health care stocks. For one thing, the industry remains as active as ever. Firstly, UnitedHealth Group (NYSE: UNH) posted earnings of $5.49 per share in its latest quarterly financial release yesterday. This is well above Wall Street forecasts of $5.38. Also, the company cites strength in its Medicare Advantage business as a growth factor for the quarter and is raising its full-year outlook. Elsewhere, Valneva (NASDAQ: VALN), a French biotech firm, received the first approval for its coronavirus vaccine in the U.K. With all this in mind, here are three more health care stocks to watch in the stock market today.

Health Care Stocks To Buy [Or Sell] This Month

GlaxoSmithKline plc

GlaxoSmithKline is kicking things off for us today. To begin with, it is a global U.K.-based health care firm. Through its massive portfolio, the company aims to provide “differentiated, high-quality, and needed healthcare products” to as many patients as possible. Overall, the company has three primary research divisions. They are its pharmaceuticals, vaccines, and consumer health care arms.

Across these operations, GSK works on treating a wide spread of health care areas. This includes but is not limited to respiratory, HIV, immuno-inflammation, and oncology via its pharmaceutical department. Additionally, its consumer division also offers oral health, pain relief, cold, flu and allergy, vitamins, minerals, and supplements. Nevertheless, GSK continues to find new means of expanding its industry-leading portfolio. Notably, the company is acquiring Sierra Oncology (NASDAQ: SRRA), a late-stage biopharmaceutical company. In fact, Sierra is currently working on momelotinib, a treatment for a fatal bone marrow cancer known as myelofibrosis.

All in all, GSK is gaining access to all this via a $1.9 billion deal. It is looking to purchase Sierra at the price of $55 per share of common stock in cash. Moreover, GSK also notes that momelotinib would synergize well with its current work in the field of hematology. By both companies’ estimates, the drug could undergo U.S. regulatory submission in the current quarter. After considering this news, would GSK stock be a top pick in your books?

GSK stock chart
Source: TD Ameritrade TOS

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Rite Aid Corporation

Rite Aid is a drugstore chain company with headquarters in Camp Hill, Pennsylvania. In fact, the company continues to drive lower health care costs through better coordination, stronger engagement, and personalized services. Millions of customers use its services and it has over 2,400 pharmacy locations across 17 states. On Thursday, the company reported its fourth-quarter and full year financials for 2022. 

Full-year revenues increased by $525 million to $24.6 billion. The company notes that pharmacy sales increased by 12% year-over-year. Adjusted EBITDA from continuing operations was $106.07 million for the quarter. “We exceeded our 2022 plan amid continuing challenges of the COVID-19 pandemic. As we look forward to the year ahead, we are ready and energized to compete in a new post-pandemic normal,” said Heyward Donigan, president and chief executive officer. “We demonstrated the important role that pharmacists play in the everyday health of our customers and are well positioned to grow in a trillion-dollar pharmacy market through our continued leadership as a full-service pharmacy company.”

Last week, the company also announced together with Beyond Meat (NASDAQ: BYND) that it will be introducing its Beyond Burger and Beyond Meatballs at approximately 2,000 stores nationwide. Earlier in the year, the company also announced an expansion of its partnership with RELEX Solutions to include unified supply chain and category management. The move will help automate and streamline processes while also gaining end-to-end visibility in the company’s multi-echelon supply chain. With that being said, is RAD stock a buy?

RAD stock
Source: TD Ameritrade TOS

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Pfizer Inc.

Following that, we have Pfizer, a research-based, global biopharmaceutical company. It continues to apply science and technology to bring therapies to billions of people all around the globe. It also continues to improve their lives through the discovery, development, and manufacture of medicines and vaccines. PFE stock has enjoyed gains of over 40% in the past year alone.

On Thursday, the company announced positive results from its Phase 2/3 clinical trial evaluating the safety and tolerability of a booster dose of its Covid-19 vaccine in healthy children 5 through 11 years of age. These data demonstrate an increase in Omicron variant neutralizing titers following a booster dose of its vaccine when compared to two doses. 

On top of its vaccine progress, the company also has an impressive pipeline of over 80 products, with 8 regulatory approvals recently and also 4 regulatory submissions. It also has 13 Phase 3 studies ongoing and has over 35 manufacturing sites worldwide. All things considered, is PFE stock worth investing in today?

PFE stock
Source: TD Ameritrade TOS

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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