Healthcare Stocks to Buy Now: CRISPR Therapeutics, Johnson & Johnson, and Medtronic

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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.

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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.

Frequently Asked Questions (FAQs) Related to the Above News

What is CRISPR Therapeutics?

CRISPR Therapeutics is a biotech company that specializes in developing gene-editing therapies for various diseases. It is known for its CRISPR-Cas9 gene-editing technology.

What is the significance of the FDA decision on exa-cel for sickle cell disease?

The FDA's decision on exa-cel is significant because it would mark the approval of CRISPR Therapeutics' first product. It could also validate the potential of gene-editing technology in treating diseases. Additionally, if approved, exa-cel could generate substantial revenue for the company.

How has Johnson & Johnson's growth been sustained over the years?

Johnson & Johnson's growth has not been driven by its consumer health business, which it recently spun off. Instead, the company has focused on its higher-growth medtech and pharmaceutical divisions, which have consistently increased earnings.

What advantages does Johnson & Johnson gain from spinning off its consumer health business?

The spinoff generated over $13 billion in proceeds for Johnson & Johnson to allocate towards other priorities. It also allows the company to concentrate its resources on programs with the highest potential for earnings growth and eliminates the drag from slower growth rates in the consumer health business.

How is Medtronic transforming itself into a higher-growth company?

Medtronic is undergoing a transformation by divesting certain businesses, making strategic acquisitions, streamlining processes, and investing in areas like artificial intelligence (AI). These efforts have resulted in organic revenue growth across all of its business units in the most recent quarter.

What is Medtronic's focus in terms of future growth?

Medtronic is committed to research and development and seeks to drive growth through acquisitions. The company's investments in areas such as AI are expected to contribute to its future growth.

What makes CRISPR Therapeutics, Johnson & Johnson, and Medtronic attractive investment opportunities?

These healthcare companies have a strong track record of success, positive future prospects, and reasonable valuations. CRISPR Therapeutics has a potential milestone with the FDA approval decision on exa-cel, while Johnson & Johnson's strategic focus on medtech and pharmaceuticals offers growth opportunities. Medtronic's transformation efforts and commitment to research and development make it an attractive investment option.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

Advait Gupta
Advait Gupta
Advait is our expert writer and manager for the Artificial Intelligence category. His passion for AI research and its advancements drives him to deliver in-depth articles that explore the frontiers of this rapidly evolving field. Advait's articles delve into the latest breakthroughs, trends, and ethical considerations, keeping readers at the forefront of AI knowledge.

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