The volatile stock market scenario makes it prudent to invest in defensive investment options such as healthcare stocks. The healthcare sector is considered safe because of its low correlation with global macro conditions and resilient demand for healthcare. Further, technological improvements, an aging population, and advancing treatments for chronic diseases and conditions reflect the sector’s growth prospects.
Using the TipRanks Stock Screener tool, we have identified stocks with the potential to outperform the market averages. These five stocks have received a Strong Buy rating from analysts and have an Outperform Smart Score on TipRanks. Moreover, the analysts’ price targets indicate room for a 12-month gain of more than 20%.
Here are the five key stocks from the healthcare space that investors can consider.
- UnitedHealth (NYSE:UNH) – The diversified healthcare company’s price forecast of $599.33 implies a nearly 28% upside from the current levels.
- Biogen (NASDAQ:BIIB) – The biopharmaceutical company discovers, develops, and delivers therapies for the treatment of neurological and neurodegenerative diseases. BIIB stock has an analyst consensus upside of 24.8%.
- Danaher Corp. (NYSE:DHR) – DHR stock’s average price target implies a consensus upside of 22.9%. Danaher designs, manufactures, and markets professional, medical, industrial, and consumer products.
- Catalent (NYSE:CTLT) – The company provides advanced delivery technologies and development solutions for drugs, biologics, and consumer health products. The stock has an average price target of $82.44, which implies a 31.6% upside potential from current levels.
- BeiGene (NASDAQ:BGNE) – BeiGene is a biotechnology company that specializes in the development of drugs for cancer treatment. BGNE stock’s price forecast of $300.51 implies a nearly 37% upside.