Biotech CRISPR Therapeutics (CRSP 5.55%), healthcare giant Johnson & Johnson (JNJ 1.04%), and medical device powerhouse Medtronic (MDT 1.75%) are three healthcare stocks that stand out in the market right now. These companies have a strong track record of success, positive future prospects, and reasonable valuations, making them attractive options for investors.
CRISPR Therapeutics is on the verge of a major milestone. The U.S. Food and Drug Administration (FDA) is set to make a decision on the approval of its first product, exa-cel for sickle cell disease, next month. If approved, it could generate significant revenue for the company. Additionally, a positive FDA decision would also validate the gene-editing technology behind CRISPR Therapeutics’ pipeline, opening the door for potential functional cures for various diseases. Despite recent positive comments about exa-cel during an FDA advisory committee meeting, the stock still has room for growth.
Johnson & Johnson has consistently increased earnings over the years, although its growth has not been driven by products like Band-Aid bandages and Tylenol. This year, J&J spun off its consumer health business to focus on its higher-growth medtech and pharmaceutical divisions. This strategic move offers J&J three advantages: it generated over $13 billion in proceeds for other priorities, it allows the company to focus resources on programs with the highest potential for earnings growth, and it eliminates the drag from slower growth rates in the consumer health business. With a focus on increasing pharmaceutical sales and trading at a reasonable valuation, J&J appears to be an excellent buy.
Medtronic is already a leader in the medical device industry, with numerous product approvals in major markets. The company has been undergoing a transformation to become a higher-growth company by divesting certain businesses, making key acquisitions, streamlining processes, and investing in areas such as artificial intelligence (AI). These efforts have already paid off, with all four of Medtronic’s business units experiencing organic revenue growth in the most recent quarter. The company’s commitment to research and development and its focus on acquisitions are expected to drive future growth. Trading at a low valuation, Medtronic is an attractive investment opportunity.
In conclusion, CRISPR Therapeutics, Johnson & Johnson, and Medtronic are three healthcare stocks worth considering for investment. Each company has a unique value proposition, with potential catalysts on the horizon and reasonable valuations. Investors looking for exposure to the healthcare sector should take a closer look at these opportunities.
