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The healthcare sector is brimming with some of the best stocks to buy right now.
With the exception of utilities, the healthcare sector has been gaining the most momentum in the stock market and leading the S&P 500 so far in 2014. And the best healthcare stocks helped the Nasdaq-Biotechnology index generate a 65% return this year, going one better than the broader Nasdaq index by over 25% so far.
Top financial management and advisory companies like Merrill Lynch have said they believe healthcare stocks will continue to carry the lead for the remainder of 2014.
Overall, stocks in this sector are some of the best stocks to buy now for investors who desire to put their money to work, but are worried about some of the hotspots globally causing market distress. The majority of healthcare industry stocks are immune to geopolitical hijinks.
Moreover, some healthcare stocks pay incredibly high and steady dividends that help to boost total returns.
But choosing the best healthcare stocks among the giant pool of what's out there can be tricky. Valuation concerns make choosing stocks in the sector more unpredictable, since companies are oftentimes at the mercy of the Food and Drug Administration (FDA) for the approval of clinical trial results.
That's why we've highlighted for readers three of the best stocks to buy right now in the healthcare sector…
Best Stocks to Buy Right Now in the Healthcare Sector
Allergan Inc. (NYSE: AGN)
Allergan benefits from the most stable balance sheet amongst its associates and a steady revenue base from a few recognized drugs. A leading financial management and advisory company team predicts that investors will see double-digit yearly growth to 2018 from two main products: the eye-treatment Restasis, and Botox.
The company has shown steadfast earnings, and several Wall Street firms have increased their ratings on this stock. Investors are rewarded by a small 0.2% dividend.
Allergan's price target is $132. The consensus target is $130.10. AGN stock closed recently at $126.32 per share.
Pfizer Inc. (NYSE: PFE)
Pfizer is forecasted to yield steady outcomes in all metrics for 2014.
It has been extensively projected that the company will eventually divide its branded and generic departments internally, with the generic division prone to a sale or offshoot. An out-and-out sale of Pfizer's generic division would be a clever move in terms of shareholder favorability. The division, which produced in excess of $10 billion in sales in 2013, may in theory be sold for at least double that value on the open market if a buyer stepped up to the plate.
Investors in Pfizer get a 3.2% dividend. The price target is $36 for the stock. The consensus target is $33.69. PFE stock recently closed at $31.98 per share.
Eli Lilly and Co. (NYSE: LLY)
Many experts perceive a few powerful motivators for Eli Lilly stock for the remainder of 2014. Though some have focused on the negative of the company's patent expirations, many leading financial management and advisory companies that are bullish on the company are excited about amplified share-buybacks as keen support for the stock.
Investors receive a solid 3.3% dividend. The target price is $67. LLY stock recently closed at $59.03 per share.
- 24/7 Wall St: Merrill Lynch's Top Health Care Stocks to Buy Now