S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20

7 Healthcare Stocks Delivering Innovation in 2021

Posted on Monday, February 8th, 2021 by MarketBeat Staff
7 Healthcare Stocks Delivering Innovation in 2021We all knew that traditional healthcare services were disrupted in 2020. The patient-doctor relationship went virtual. In the early months of the pandemic, many people in need of elective surgeries simply did not have that option available to them. And even local pharmacies took on a new e-commerce role as curbside pickup or home delivery of prescription medication became the norm.

Not surprisingly healthcare stocks were battered last year. Overall, the sector was down 11%, far below the S&P 500 Index that climbed over 15%.

However, the market is always forward-looking with a particular eye towards innovation. The healthcare sector has many companies that are developing innovative approaches in areas such as gene editing. And other companies are in late-stage trials for drugs that can deliver breakthrough results for conditions that continue to plague our world.

That’s the focus of this presentation. We’ve identified 7 healthcare stocks that are delivering innovative ideas that will help deliver better patient outcomes. And in some cases will revolutionize medicine altogether. These are also the stocks that analysts have their eye on.

#1 - Cassava Sciences (NASDAQ:SAVA)

Cassava Sciences logo

The first company on our list is a biotechnology company. But Cassava Sciences (NASDAQ:SAVA) is probably not a company you heard about in 2020 because it doesn’t have a Covid-19 vaccine candidate. What the company does have is a late-stage drug candidate, simufilam, that is designed to treat Alzheimer’s disease.

The statistics about Alzheimer’s are staggering. Approximately 5.7 million individuals in the United States are currently afflicted. That number is projected to rise to 16 million by 2050. In fact, someone in the U.S. develops Alzheimer’s every 65 seconds. By 2050, that time is projected to drop to 33 seconds.

And there is no cure. But progress is being made on the treatment front. The company is scheduled to start a Phase 3 trial of simufilam in the latter half of 2021. However the stock has charged higher since the beginning of the year on news that an interim analysis of Cassava’s clinical study showed that patients who were using simufilam for six months showed improved cognitive function with no serious side effects.

This is a very aggressively growing stock that closed trading on February 1 at $22.99 and is trading over $114 per share as of this writing. Cassava is not yet profitable, but the fortunes of the company can change dramatically if it can bring simufilam through a successful trial.

About Cassava Sciences

Cassava Sciences, Inc engages in the development of novel drugs and diagnostics. It focuses on developing product candidates intended for the treatment of Alzheimer's disease, including PTI-125 and PTI-125Dx. The company was founded by Remi Barbier and Barry M. Sherman in May 1998 and is headquartered in Austin, TX.
Current Price
$55.96
Consensus Rating
Buy
Ratings Breakdown
3 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$146.00 (160.9% Upside)




#2 - Crispr Therapeutics (NASDAQ:CRSP)

CRISPR Therapeutics logo

Gene editing was one of the most promising technologies that fell to the back burner a little due to the pandemic. In layman’s terms Crispr Therapeutics (NASDAQ:CRSP) looks for anomalies in an individual’s genetic sequence. When an anomaly is identified, the company uses a protein called Cas9 to cut out the anomaly and replace it.

It’s not simple, and that’s the reason the company has not yet delivered a product to market. However, that may be changing. The company is currently working to mass-produce cell therapies that will work in any individual. And its in-house therapy for non-Hodgkin’s lymphoma (CTX110) is already through Phase 1 trials.

Investors who are unfamiliar with Crispr Technologies may look at the company’s stock chart and get a bit spooked. You shouldn’t. CRSP stock is down nearly 20% from its mid-January high. But this is likely due to profit-taking.

The stock pushed through an important level of resistance at $70 in early summer and was marching steadily forward. The price of CRSP stock accelerated at the start of the year, but the recent selloff creates a good buying opportunity.

About CRISPR Therapeutics

CRISPR Therapeutics AG engages in the development and commercialization of therapies derived from genome-editing technology. Its proprietary platform CRISPR/Cas9-based therapeutics allows for precise and directed changes to genomic DNA. The company was founded by Rodger Novak, Emmanuelle Charpentier, Shaun Patrick Foy, Matthew Porteus, Daniel Anderson, Chad Cowan and Craig Mellow in 2014 and is headquartered in Zug, Switzerland.
Current Price
$78.79
Consensus Rating
Buy
Ratings Breakdown
12 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$160.40 (103.6% Upside)




#3 - Editas Medicine (NASDAQ:EDIT)

Editas Medicine logo

Another company that is involved in gene editing is Editas Medicine (NASDAQ:EDIT). In fact, Editas uses Crispr Technologies gene-editing technique. Like Crispr, however, the company does not yet have a product on the market.

EDIT stock has gone up 120% in the trailing twelve months as of this writing. A stock like this doesn’t see this kind of price action without any news. In the case of Editas, the company has two treatment candidates (EDIT-101 and EDIT-301) that have gone through early-stage clinical trials. EDIT-101 is for the treatment of a rare eye disorder that is the leading cause of infant blindness and EDIT-301 is for the treatment of sickle cell disease.

The stock recently dipped 30% when the company announced it was issuing a share offering. This is not unusual. You may recall that many small-cap biotech stocks initiated share offerings last year as they were developing Covid-19 treatments. Science like this takes money. And Editas hopes to raise gross proceeds of $231 million.

About Editas Medicine

Editas Medicine, Inc engages in the development and commercialization of genome editing technology. Its technology includes clustered, regularly interspaced short palindromic repeats (CRISPR), and CRISPR associated protein 9 (Cas9). The company was founded by Feng Zhang, Jennifer A. Doudna, George McDonald Church, J.Read More 
Current Price
$32.37
Consensus Rating
Hold
Ratings Breakdown
9 Buy Ratings, 5 Hold Ratings, 3 Sell Ratings.
Consensus Price Target
$57.27 (76.9% Upside)




#4 - Vertex Pharmaceuticals (NASDAQ:VRTX)

Vertex Pharmaceuticals logo

If you’re looking for a less speculative choice in healthcare stocks, you can consider Vertex Pharmaceuticals (NASDAQ:VRTX). Vertex is a profitable company that is the market leader in drugs used to treat the underlying causes of Cystic Fibrosis (CF).

Vertex is also partnering with Crispr Technologies to become a player in the gene-editing field. Like Editas, Vertex is working on a treatment for sickle cell disease.

VRTX stock is down nearly 7% in 2021, but has only gone into the red after what some analysts felt was a disappointing earnings report on the bottom line. However, the company’s results on the top and bottom lines were significantly higher on a year-over-year (YOY) basis.

At one point in 2020, VRTX stock was trading near $300 per share. While that may have too extreme on the high end, the current selloff looks a bit unwarranted. Vertex should have no problem delivering revenue and profits for the remainder of the year. And if the company sees movement in the rest of its pipeline, the gain may be significant.

About Vertex Pharmaceuticals

Vertex Pharmaceuticals, Inc is a global biotechnology company. It engages in the business of discovering, developing, manufacturing and commercializing small molecule drugs for patients with serious diseases. The firm focuses on development and commercializing therapies for the treatment of cystic fibrosis, infectious diseases including viral infections such as influenza and bacterial infections, autoimmune diseases such as rheumatoid arthritis, cancer, inflammatory bowel disease and neurological disorders including pain and multiple sclerosis.Read More 
Current Price
$183.59
Consensus Rating
Buy
Ratings Breakdown
12 Buy Ratings, 5 Hold Ratings, 2 Sell Ratings.
Consensus Price Target
$253.25 (37.9% Upside)




#5 - Medtronic (NYSE:MDT)

Medtronic logo

Outpatient surgery was one of the areas of the healthcare sector that was most affected by the pandemic. And it’s taken Medtronic (NYSE:MDT) stock the better part of a year to get back to its pre-pandemic level.

As a $160 billion company, and a dividend aristocrat no less, you may not perceive Medtronic as being a leader in medical innovation. However, the company is a growing presence in robotic-assisted surgeries. This sector is still in its early stages of growth. It has however received a lift in awareness at least from the novel coronavirus which has provided a real-world use case for the concept of robotic surgery.

That awareness did not translate into revenue as the market for robotic surgery devices dropped in 2020 to just under $5 billion. But according to the firm Research and Markets, this market is expected to grow to $7.71 billion in 2023 at a compound annual growth rate (CAGR) of 16.8%.

About Medtronic

Medtronic Plc is a medical technology company, which engages in the development, manufacture, distribution, and sale of device-based medical therapies and services. It operates through the following segments: Cardiac and Vascular Group; Minimally Invasive Technologies Group; Restorative Therapies Group; and Diabetes Group.Read More 
Current Price
$111.05
Consensus Rating
Buy
Ratings Breakdown
16 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$144.21 (29.9% Upside)




#6 - Teladoc (NYSE:TDOC)

Teladoc Health logo

Any talk of healthcare innovation in 2021 has to consider the field of telehealth. And Teladoc Health (NYSE:TDOC) is one of the unquestioned leaders in this space.

TDOC stock has enjoyed a massive 160% gain in the trailing twelve-month period. It’s reasonable for investors to ask if the thrill is gone, particularly since like other stocks in this presentation, Teladoc is not yet profitable.

You can rely on anecdotal evidence that the pandemic is fundamentally changing the nature of the doctor-patient relationship. Many patients are realizing that there are some things that can be handled with a virtual visit, which makes for a more efficient and potentially safe experience for all involved.

However, a more convincing way to look at the company’s prospects is go to the data. In the most recent quarter, the company’s revenue more than doubled and total “office visits” more than tripled on a YOY basis.

And in 2020, Teladoc acquired Livongo Health, which will allow it to capture further market share and branch out into the area of chronic condition management.

About Teladoc Health

Teladoc Health, Inc engages in the provision of telehealthcare services using a technology platform via mobile devices, the Internet, video and phone. Its portfolio of services and solutions covers medical subspecialties from non-urgent, episodic needs like flu and upper respiratory infections, to chronic, complicated medical conditions like cancer and congestive heart failure.Read More 
Current Price
$109.61
Consensus Rating
Buy
Ratings Breakdown
14 Buy Ratings, 14 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$181.19 (65.3% Upside)




#7 - Zoetis (NYSE:ZTS)

Zoetis logo

The last stock on our list is proof that human healthcare is not the only narrative in 2020. Zoetis (NYSE:ZTS) is a leader in the area of veterinary health for pets and livestock. One thing that makes Zoetis a compelling stock is that the company is a spinoff of Pfizer (NYSE:PFE).

Pet adoptions have surged during the Covid-19 pandemic. And according to the company’s CEO, Kristin Peck, that is translating into more money being spent on food and supplies. And as owners stay home with their pets, they have been more likely to get in front of potential health issues, and are looking for solutions.

The company’s business grew to $6.26 billion in 2019. When Zoetis reports earnings in February, investors will be able to see how 2020 nets out. Through the first three quarters, the company had booked $4.87 billion so there’s a chance they could have a YOY increase.

ZTS stock is up 12% for the trailing twelve-month period although it is down approximately 4.5% in 2021.

About Zoetis

Zoetis, Inc discovers, develops, and manufactures a portfolio of animal health medicines and vaccines. The firm operates through the following segments: United States &International. Its products are complemented by diagnostic products, genetic tests, bio devices, and services. These are designed to meet the needs of veterinarians and the livestock farmers and companion animal.Read More 
Current Price
$219.32
Consensus Rating
Buy
Ratings Breakdown
6 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$219.13 (0.1% Downside)



 

Vaccine stocks, and the companies that will be involved with the distribution of the vaccine, received a significant amount of investor attention in 2020. And there was good reason. Many of these companies are moonshots that fit the risk-reward dynamic that is prevalent in the market.

But believe it or not, there will be an end to the Covid-19 pandemic. Nearly one year since the first known cases of the virus were detected in the United States, there are multiple vaccines available. And while the rollout of the vaccines will never be as fast as many want, the overall trends are moving in a positive direction.

As we pointed out in the introduction, the market is always looking for what’s next. And that means that, perhaps, there will be a return to looking at stocks for their fundamentals. These are two reasons that the vaccine trade will give way to companies that are leading the way forward.

These are the healthcare stocks you should be adding to your portfolio in 2021. They combine innovation with treatments that address the diseases that we don’t yet have a vaccine to treat.

7 Stocks to Buy That Will Benefit From Inflation

There are two narratives that are getting conflated when it comes to inflation. The first is whether or not inflation is occurring. And the second is whether inflation will get out of control.

To the first point, the clear answer is absolutely. There are price increases in everything from commodities to semiconductor chips. And even though lumber prices have gone down it’s a good bet that many consumers will put off their deck projects for another day.

And, of course, inflation numbers tend to strip out gas and groceries – but those are precisely the areas where consumers feel inflation the most. Inflation is real.

But is this just “transitory” as many analysts and the Fed itself claim? Or is it only the beginning of something much worse? The answer to those questions is probably above our pay grade.

As an investor, the inflation narrative only changes where you allocate your investment dollars. And for the most part, you’re probably only looking at a small percentage of your portfolio.

However, the first rule of investing is to not lose money so it’s important to identify companies that can provide a hedge against inflation – transitory or otherwise.

That’s the focus of this special presentation. Right now there are many strong companies that benefit when inflation is on the rise.

View the "7 Stocks to Buy That Will Benefit From Inflation" Here.





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