Investors in the equity markets are facing uncertain times. Geopolitical tensions, high commodity prices, rising interest rates and inflationary pressures are some of the issues haunting the investment community and their investment decisions. Finding out which stocks to invest in and avoiding losses can be a tough task.
A look at the TipRanks Smart Portfolio can save the investors from a lot of trouble and help them pick winners even in these testing times. The TipRanks Smart Portfolio allows investors to benchmark their portfolios against the best performing portfolios on TipRanks.
One of the top sectors in the best performing portfolios on TipRanks is healthcare, which has an allocation of 6.8%. This is because the S&P 500 Health Care Sector Index has given a return of 18.8% in the past year, outperforming the S&P 500 Index’s return of 15.9% and the Nasdaq Composite’s return of 9% over the same period.
Further, the medical havoc wreaked by COVID-19 over the past couple of years has resulted in a psychological shift among the masses to take extra care of their health. Such a shift is expected to be beneficial for the healthcare sector in the long run.
Now that it has been established that investment in the healthcare sector can be a prudent choice, it is also important to understand that not all stocks in the sector are investment worthy. This is where the TipRanks Smart Portfolio separates the wheat from the chaff and brings us three stocks that are part of the best performing portfolios. Let’s have a look at them.
AbbVie (NYSE: ABBV)
Based in Lake Bluff, IL, AbbVie is a biopharmaceutical company active in areas like immunology, oncology, neuroscience, eye care, virology, women’s health and gastroenterology.
AbbVie has an allocation of 3.55% in the Best Performing Portfolio on TipRanks, the highest among the healthcare stocks.
The stock has also performed well so far this year, entailing a return of 19.71%, which compares favorably to S&P 500 Healthcare Index’s decline of 2.9%
Moreover, Mizuho Securities analyst Vamil Divan reiterated a Buy rating on the stock with a price target of $166, which implies upside potential of 1.4% from current levels.
According to the analyst, the company’s announcement of positive results from its Phase 3 PROGRESS trial for their oral CGRP Qulipta to treat chronic migraine in adults is a positive, as the treatment of migraine in adults remains an underpenetrated market with few competitors. This bodes well for the company on the revenue and profitability front.
Overall, the Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 11 Buys and five Holds. AbbVie’s average price target of $150.87 implies that the stock has downside potential of 7.6% from current levels. Shares have gained 49.4% over the past year.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on ABBV. Among the 115,591 best performing portfolios on TipRanks, 4.9% of them hold ABBV. In the past month, however, 1.8% of these portfolios have reduced their holdings of the stock.
Pfizer Inc. (NYSE: PFE)
New York City-based pharmaceutical and biotechnology corporation Pfizer develops and produces medicines and vaccines for immunology, oncology, cardiology, endocrinology and neurology. Notably, it developed the mRNA-based COVID-19 vaccine with German biotechnology company BioNTech.
Pfizer has an allocation of 1.69% in the Best Performing Portfolio on TipRanks.
However, the stock has been a laggard so far this year, declining 8.6% compared to the S&P 500 Healthcare Index’s decline of 2.9%.
Recently, Wells Fargo analyst Mohit Bansal reiterated a Buy rating on the stock with a price target of $60, which implies upside potential of 14.4% from current levels.
According to the analyst, the company’s upside from its COVID-19 vaccine and tablet still has some steam left. Further, benefits from the company’s transformation to a pure-play biopharma entity is expected to see its upside in 2022.
Overall, the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on seven Buys and eight Holds. PFE’s average price target of $61.21 implies that the stock has upside potential of 16.4% from current levels. Shares have gained 42.6% over the past year.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on PFE. Among the 115,591 best performing portfolios on TipRanks, 3.5% of them hold PFE. In the past month, 3.3% of these portfolios increased their holdings of the stock.
Johnson & Johnson (NYSE: JNJ)
Based out of New Jersey, Johnson & Johnson has been a long-term player in the healthcare sector with interests in medical devices and pharmaceuticals. The company also developed its own single-shot COVID-19 vaccine.
Johnson & Johnson has an allocation of 1.56% in the Best Performing Portfolio on TipRanks.
The stock has performed well this year and given a return of 3.3%, better than the S&P 500 Healthcare Index’s decline of 2.9%.
On March 2, Bank of America Securities analyst Geoff Meacham initiated coverage on the stock with a Hold rating and a price target of $185, which implies upside potential of 3% from current levels.
According to the analyst, the company’s near-term growth prospects remain shielded from the current geopolitical uncertainties due to its “safe haven” status. However, the analyst opines that it is “tougher to have a bullish long-term outlook” due to the lack of meaningful business development activity.
Overall, the Street is cautiously optimistic about the stock and commands a Moderate Buy consensus rating based on six Buys and five Holds. JNJ’s average price target of $186.36 implies that the stock has upside potential of 4.1% from current levels. Shares have gained 8.8% over the past year.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on JNJ. Among the 115,591 best performing portfolios on TipRanks, 3.5% of them hold JNJ. In the past month, 2.8% of these portfolios have increased their holdings of the stock.
Conclusion
Macroeconomic headwinds are aplenty in these most uncertain of times. To steer one’s portfolio in the right direction, these three notable stocks from the healthcare sector, present in the Best Performing Portfolio on TipRanks, can be looked upon as a safe investment choice.
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