2024 brings a new year of changes, innovations and developments in all sectors of the economy, as well as the stock market. One sector poised for another year of growth is healthcare, which necessarily relies on technology and benefits from the adoption of new tech and innovation. Investors in the healthcare sector can also profit from this innovative and adaptable industry.

Healthcare Sector Overview

The highest performing stocks in the United States in 2023 were tech stocks. When discussing AI, tech and new innovations that is the sector that investors think of, however, the healthcare industry is currently undergoing a transformation. This is where new innovations in technology and AI meet real-life challenges and solve real-life problems.

The healthcare industry is using modern innovative tech to create new solutions to the issues it faces, such as staff shortages, healthcare provider burnout, and patient safety and quality of care. This is an industry positioned on the cutting edge of technology and innovation as we head into 2024.

Methodology Used For Healthcare Stock Picks

When it came to choosing a trio of healthcare stocks for you to consider in 2024, my focus was on sustainability and quality, as well as valuation and price trend. Each of these stocks is down significantly from its high price of the past two years.

Importantly, when researching healthcare stocks of size and quality such as the three highlighted below, valuations are often higher than the broad stock market. That is because the market will in some cases be willing to assign a higher multiple on earnings to a company that, like these, has robust and predictable earnings, sales and cash flows versus less mature businesses.

There are plenty of hit-or-miss names in this sector, particularly among smaller upstart companies. But those were automatically excluded because they either have not been around and proven for enough time, or they are heavily reliant on debt to fund their growth. Elevated interest rates threaten to derail companies in any industry that need to refinance their existing lower cost borrowings at much higher rates.

The brain trust at Forbes has run the numbers, conducted the research, and done the analysis to come up with some of the best places for you to make money in 2024. Download one of Forbes’ most popular and widely anticipated reports, 12 Best Stocks To Buy for 2024.

The 3 Best Healthcare Stocks For 2024

These healthcare industry stocks are three companies that have stood the test of time. These companies continue to innovate and develop products for the future, maintaining their edge and competitiveness, as well as their profits for investors. While past performance is no guarantee of future success, these companies have a lot of past performance data for investors to research and reach their own conclusions on whether they are worth investing in.

1. Abbott Labs (ABT)

  • Industry/sector: Healthcare Equipment/Healthcare
  • Market cap: $188.2 billion
  • Stock price: $106.35
  • P/E (trailing 12 months): 25.1
  • Dividend yield: 2.0%
  • Dividend payout frequency: Quarterly

Company Overview

Founded in 1888, Abbott Labs designs products and solutions for health and wellness. With products and tech for cardiovascular care, diagnostics, diabetes care, nutrition, neuromodulation care and branded generic medicines,

Why ABT Is A Top Pick

Abbott Labs is an established healthcare leader in 160 countries around the world. Abbott Labs is dedicated to innovation and is constantly improving and advancing the technology it produces. In 2023, Abbott Labs received FDA approval for its leadless pacemaker system and announced their acquisition of Bigfoot Biomedical.

2. Becton Dickinson
BDX

  • Industry/sector: Healthcare Equipment/Healthcare
  • Market cap: $70 billion
  • Stock price: $237.67
  • P/E (trailing 12 months): 19.7
  • Dividend yield: 1.6%
  • Dividend payout frequency: Quarterly

Company Overview

Becton Dickinson is one of the largest medical technology companies in the world. Founded in 1897, BD currently has three sectors: interventional, which develops critical equipment for hospitals and clinics; medical, which focuses on medication and pharmaceutical management and delivery systems; and life sciences, which innovates and delivers solutions needed for advancing research and diagnostics.

Why BDX Is A Top Pick

In recent years, BD is developing AI-powered healthcare tools to help clinicians be more efficient, reducing administrative burdens and streamlining workflows so that doctors can focus on patient care.

The brain trust at Forbes has run the numbers, conducted the research, and done the analysis to come up with some of the best places for you to make money in 2024. Download one of Forbes’ most popular and widely anticipated reports, 12 Best Stocks To Buy for 2024.

3. Medtronic
MDT

  • Industry/sector: Healthcare Equipment/Healthcare
  • Market cap: $109 billion
  • Stock price: $80.58
  • P/E Ratio (Trailing 12 months): 15.4
  • Dividend yield: 3.3%
  • Dividend payout frequency: Quarterly

Company Overview

Medtronic was founded in 1949, in the United States. Its executive headquarters are still in the U.S., but when Medtronic acquired Ireland-based Covidien
COV
in 2015, it moved legal headquarters to Ireland. Medtronic operates in 150 countries worldwide, developing and engineering technology to mitigate complex and challenging health conditions.

Why MDT Is A Top Pick

Medtronic innovates new tech, from AI to less-invasive surgery to the world’s smallest pacemaker. In December Medtronic announced it is expanding its partnership with Cosmo Intelligent Medical Devices to continue and expand its focus on innovative and scalable AI solutions in the healthcare field.

Investing Strategies To Know

Investing requires strategies that involve understanding the markets, dedication and research to be successful long term. Investors should set clear personal goals, understand their own risk tolerance and create a strategy to mitigate risk and reach their goals. Often investors fall into either the growth investing or value investing camp. Each investor is unique and should do his/her research and create an individual strategy, with the assistance of professionals if desired, whether their goal is long-term capital gain or short-term profit.

Bottom Line

These three healthcare stocks have weathered many ups and downs of the market over the past century and continue to maintain their edge in today’s competitive market through adaptability and innovation. They are worth considering for investments in 2024.

Read Next

The brain trust at Forbes has run the numbers, conducted the research, and done the analysis to come up with some of the best places for you to make money in 2024. Download one of Forbes’ most popular and widely anticipated reports, 12 Best Stocks To Buy for 2024.

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