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S&P 500   3,852.36
DOW   32,920.46
QQQ   303.59
Mullen Automotive Stock, The Tide Has Turned
Profit From the Commercial Solar Boom? (Ad)
Energizer Holdings Inc; Losing Power Or Electrifying Time To Buy?
What do Mastercard Earnings Indicate About Consumer Spending?
Profit From the Commercial Solar Boom? (Ad)
How to Find Penny Stocks to Invest and Trade
ONSemi Is Marching Higher On Great Results
The #1 Energy Stock to Buy (Ad)
What Tyson Foods Q1 Means For Staples Stocks
Can Cummins Power To A New High? 
S&P 500   3,852.36
DOW   32,920.46
QQQ   303.59
Mullen Automotive Stock, The Tide Has Turned
Profit From the Commercial Solar Boom? (Ad)
Energizer Holdings Inc; Losing Power Or Electrifying Time To Buy?
What do Mastercard Earnings Indicate About Consumer Spending?
Profit From the Commercial Solar Boom? (Ad)
How to Find Penny Stocks to Invest and Trade
ONSemi Is Marching Higher On Great Results
The #1 Energy Stock to Buy (Ad)
What Tyson Foods Q1 Means For Staples Stocks
Can Cummins Power To A New High? 
S&P 500   3,852.36
DOW   32,920.46
QQQ   303.59
Mullen Automotive Stock, The Tide Has Turned
Profit From the Commercial Solar Boom? (Ad)
Energizer Holdings Inc; Losing Power Or Electrifying Time To Buy?
What do Mastercard Earnings Indicate About Consumer Spending?
Profit From the Commercial Solar Boom? (Ad)
How to Find Penny Stocks to Invest and Trade
ONSemi Is Marching Higher On Great Results
The #1 Energy Stock to Buy (Ad)
What Tyson Foods Q1 Means For Staples Stocks
Can Cummins Power To A New High? 

Four Healthcare Stocks To Watch This Week

Key Points

  • The Healthcare sector is expected to grow 7% over the next five years
  • United Health Group has promising data to make them a Moderate BUY
  • Eli Lilly & Co is also a moderate BUY, even after the Twitter fiasco
  • Johnson & Johnson is making small gains, so they are a HOLD
  • Pfizer's latest numbers are mixed, but analysts also give them a HOLD rating
  • 5 stocks we like better than Eli Lilly and
Four Healthcare Stocks To Watch This Week

Healthcare has long been a pretty wise investment, as the industry consistently grows every year. As a matter of fact, some analysts believe this economic sector could grow by more than 7% through 2027. That is nearly double the expectation for overall economic growth over the same period. In addition healthcare spending in the United States accounts for almost 20% of the Gross Domestic Product (2020), even US patients pay more for health care than any other comparably advanced global economy.

For these reasons and more, healthcare stocks are often wise to include in any investment portfolio. But while the numbers are promising, investing in healthcare stocks is not the same simple matter. Accordingly, here are four healthcare stocks worth watching right now, two of which might make smart buys.

United Health Group is a Moderate Buy

The only company on this list to offer insurance options in addition to healthcare products is United Health Group (NYSE: UNH). With a current share value of, UNH is up more than 2.3% on the year so far; however, some other factors contribute to make UNH a Moderate BUY this week.

For one, they have an impressive upside of 15.80% with at least 13% earnings growth. This suggests that not only do analysts foresee the company growing profit, but the expected earnings to grow parallel. United Healthgroup has a similarly impressive Price-to-Sales ratio (P/S) of 1.67—with a nearly unheard-of Price-to-Earnings ratio (P/E) of 25.16—making UNH a perfect example of these two metrics. And with a beta of 0.75, they are 25% less volatile than the S&P 500.


Eli Lilly & Co is also a Moderate BUY

After a monumental decline this week, Eli Lilly & Co (NYSE: LLY) is certainly one healthcare stock to watch, if not BUY. A fake Eli Lilly Twitter account claimed the company would make insulin free of charge, resulting in the pharmaceutical company pulling several million dollars in marketing from Twitter. More importantly, the fiasco plunged LLY share price, even as the company attempted to minimize the obvious blowback such a statement would generate.

Fortunately, the company managed to slow the effects and should be ready for a rebound. After all, before this little mishap, the stock was already up more than 25% on the year. More importantly, of course, since the media triage, Eli Lilly is back up to the top 10% of the stock's entire 52-week range, at a share price of $356.06. While the stock is still expected to slip—LLY has a new price target of $346.82 by the next reporting date—analysts project almost 19% earnings growth. And with a beta value of 0.36, LLY could prove fruitful when its recovery from the Twitter incident hit full swing.

Johnson & Johnson is a HOLD

Sitting near the median of its 52-week range, Johnson & Johnson (NYSE: JNJ) has a current share price of $171.91. This is barely up on the year, at all; only 0.77% year-to-date. The growth may not be immediately noticeable, but a net margin approaching 20%—and 35% Return-on-Equity (RoE)—certainly help make the stock more attractive. A 0.57 beta value, might also make the stock more encouraging.

Unfortunately, this may not be the best time to make any more on JNH. While analysts expect a decent +7.20% upside, for example, a concernedly high dividend payout ratio of 62.95%, could cast a pall over any strong hope for quality growth. Johnson & Johnson expects to publish their next earnings report in late January of 2023. For now, then, analysts suggest you simply Hold on JNJ, at least until then.

Pfizer Inc. is also a HOLD

Among these healthcare stocks, Pfizer Inc.'s current rating may be the biggest surprise. For one, Pfizer, Inc. (NYSE: PFE) is down around -17% on the year and analysts project their earnings could fall as much as -24% in the next 12 months. A current P/E of 9.47—more than half that of JNJ and nearly one-third of UNH—is remarkably lower than they would have liked.

Fortunately, Pfizer is in a convenient position as Moderna's stock (NASDAQ: MRNA) recently surged on positive news regarding their new COVID-19 booster. MRNA's jump helped shore up other similar properties, including PFE, working to improve Covid-related care. Pfizer, of course, has their own Covid booster in the works.

Based solely on the numbers, a HOLD rating makes a lot of sense for Pfizer, today. They are certainly not in the worst position but expectations are low in the short term. However, their current path is not exactly a straight-and-narrow path to the top.

Should you invest $1,000 in Eli Lilly and right now?

Before you consider Eli Lilly and, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Eli Lilly and wasn't on the list.

While Eli Lilly and currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Eli Lilly and (LLY)
3.5168 of 5 stars
$337.66-0.4%1.16%48.94Moderate Buy$384.11
Johnson & Johnson (JNJ)
2.8881 of 5 stars
$163.36-0.8%2.77%24.24Hold$185.23
UnitedHealth Group (UNH)
3.6824 of 5 stars
$475.24+0.7%1.39%22.43Moderate Buy$599.39
Pfizer (PFE)
3.4684 of 5 stars
$43.76-0.7%3.75%7.99Hold$52.13
Compare These Stocks  Add These Stocks to My Watchlist 

Keala Milles

About Keala Milles

Contributing Author: HealthCare and Pharma

Keala is an experienced freelance writer and has written for a wide variety of websites and has covered many topics, from stock market tips to consumer goods, with a specialty in healthcare and pharmaceutical stocks. He has experience with aggregate news writing, press releases and content pages. His strong media and communication background includes a bachelor of arts degree focused on drama and dramatics/theater arts from the University of Washington.

Contact Keala Milles via email at kealamilles@gmail.com.

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