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Yahoo
03-04-2025
- Business
- Yahoo
Danaher Corporation (DHR): One of the Best Healthcare Stocks to Buy According to Billionaires
We recently published a list of 10 Best Healthcare Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Danaher Corporation (NYSE:DHR) stands against other best healthcare stocks to invest in. Healthcare stocks experienced a challenging year in 2024, lagging behind high-growth sectors like tech and AI. Market uncertainties and policy challenges also created obstacles for certain segments within the industry. In the first half of the year, investors focused on technology and communication services, drawing attention away from healthcare. While the sector showed some improvement in the latter half as the market rally expanded, certain segments continued to struggle with supply and demand imbalances caused by the pandemic. One major factor was the increased demand for delayed medical procedures, as patients sought treatments they had postponed. This benefited healthcare facilities and medical device manufacturers but put financial pressure on managed-care insurers. Additionally, companies specializing in life sciences tools and services faced lower demand, as COVID-19 testing declined and pandemic-related inventory levels were still being reduced. Policy concerns also weighed on the sector, particularly for insurers offering Medicare Advantage plans, as reimbursement rates fell short. Uncertainty surrounding upcoming elections further contributed to the healthcare sector's struggles. On a positive note, innovation remained strong, as the biotech industry saw promising clinical developments, and advancements in treatments for conditions like obesity and diabetes fueled significant growth in the pharmaceutical sector. In the first quarter of 2025, healthcare stocks were among the strongest performers in the S&P index, outpacing the broader market. This marks a sharp contrast to their struggles in recent years. In 2024, the healthcare sector saw a modest gain of 2.06%, trailing the market's 25.02% return. A similar pattern was seen in 2023, with healthcare stocks rising just 2% while the overall market climbed 26%. Despite these challenges, healthcare remains a vital part of the economy, driven by increasing demand for medical products and services as the population ages. It is the fourth largest sector in the market, following technology, financials, and consumer discretionary. In the Russell MidCap Index, which tracks about 800 companies, healthcare ranks fifth, while in the small-cap Russell Index, it holds the third spot behind industrials and financials. Rob Haworth, senior investment strategy director for US Bank Asset Management, said: 'Investors can gain exposure to the healthcare sector by owning the S&P 500 through a passively managed index fund or ETF. Investors may also want to take a more selective approach, as the record demonstrates there can be varied performance within the healthcare sector.' Investors are taking a cautious approach as they assess potential policy shifts under the new administration. With a change in leadership at the Department of Health and Human Services, major healthcare companies could face greater scrutiny and may need to adjust to evolving policies. As the Trump administration's policies come into focus, concerns are emerging over potential budget cuts that could directly affect healthcare organizations. With the Department of Government Efficiency tasked with cutting $1 trillion from a $6 trillion budget, reductions in healthcare spending appear likely. On January 17, the House Ways and Means Committee released a list of possible cuts to support the extension of the 2017 Tax Cuts and Jobs Act. Among the proposals are eliminating the tax-exempt status of municipal bonds and potentially revoking the nonprofit status of hospitals and health systems. At the same time, hospital mergers and acquisitions have been steadily rebounding from pandemic-era lows, despite strict federal antitrust policies. However, it remains to be seen how future changes in regulatory leadership might influence M&A activity. Despite policy concerns, some billionaire investors remain confident in the healthcare sector's future. Carl Cook, with an estimated net worth of $10.3 billion, is among the wealthiest figures in the healthcare industry. He took over as CEO of his family's medical device company in 2011 following his father's death. In 2017, the company sold one of its subsidiaries to a drug delivery technology firm for $950 million. Cook also serves as president of a life sciences division focused on developing a cell therapy for urinary incontinence. Another billionaire investor in the healthcare sector is Ronda Stryker, with a net worth of $8.4 billion. Known for her contributions to medical technology and philanthropy, she has played a major role in advancing healthcare innovation. As the granddaughter of Dr. Homer Stryker, founder of a medical technology firm, she is committed to improving lives through medical advancements and social initiatives. A healthcare professional in a lab coat holding a microscope and looking at a slide under the lens. To collect data for this article, we scanned Insider Monkey's database of billionaires' stock holdings and picked the top 10 companies operating in the healthcare sector with the highest number of billionaire investors in Q4 of 2024. The stocks are ranked in ascending order based on the number of billionaire investors. We have also mentioned the value of billionaire holdings for further insight. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Billionaire Investors: 18 Value of Billionaire Holdings: $3.8 billion Danaher Corporation (NYSE:DHR) develops, produces, and sells professional, industrial, medical, and research products and services across the US, China, and other markets. The company operates through its Biotechnology, Life Sciences, and Diagnostics segments. On February 20, the company's board of directors approved a quarterly dividend of $0.32 per share. It is to be paid on April 25, to shareholders on record as of March 28. This represents an 18.5% increase from the prior dividend of $0.27 per share. Danaher has consistently paid dividends for at least 30 years, placing it among the best healthcare stocks. For the fourth quarter of 2024, Danaher Corporation (NYSE:DHR)'s sales amounted to $6.5 billion, reflecting 1% core revenue growth driven by strong demand for consumables used in commercialized therapies. The adjusted operating profit margin improved by 90 basis points to 29.6% due to cost-saving measures. Adjusted diluted earnings per share increased by 2.4% year-over-year to $2.14, with free cash flow reaching $1.5 billion for the quarter. Over the full year, Danaher generated $5.3 billion in free cash flow, achieving a free cash flow to net income conversion ratio of approximately 135%. On January 9, Danaher Diagnostics LLC and Danaher Ventures LLC, both subsidiaries of Danaher Corporation (NYSE:DHR), announced a partnership with healthcare AI company Innovaccer Inc. As part of this investment collaboration, Danaher, Innovaccer, and its network of healthcare systems aim to enhance the use of precision diagnostics among clinicians and population health teams, promoting value-based care. Overall, DHR ranks 5th on our list of the best healthcare stocks to buy according to billionaires. While we acknowledge the potential of DHR to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DHR but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
01-04-2025
- Business
- Yahoo
Eli Lilly and Company (LLY): The Best Healthcare Stock to Buy According to Billionaires
We recently published a list of 10 Best Healthcare Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Eli Lilly and Company (NYSE:LLY) stands against other best healthcare stocks to invest in. Healthcare stocks experienced a challenging year in 2024, lagging behind high-growth sectors like tech and AI. Market uncertainties and policy challenges also created obstacles for certain segments within the industry. In the first half of the year, investors focused on technology and communication services, drawing attention away from healthcare. While the sector showed some improvement in the latter half as the market rally expanded, certain segments continued to struggle with supply and demand imbalances caused by the pandemic. One major factor was the increased demand for delayed medical procedures, as patients sought treatments they had postponed. This benefited healthcare facilities and medical device manufacturers but put financial pressure on managed-care insurers. Additionally, companies specializing in life sciences tools and services faced lower demand, as COVID-19 testing declined and pandemic-related inventory levels were still being reduced. Policy concerns also weighed on the sector, particularly for insurers offering Medicare Advantage plans, as reimbursement rates fell short. Uncertainty surrounding upcoming elections further contributed to the healthcare sector's struggles. On a positive note, innovation remained strong, as the biotech industry saw promising clinical developments, and advancements in treatments for conditions like obesity and diabetes fueled significant growth in the pharmaceutical sector. In the first quarter of 2025, healthcare stocks were among the strongest performers in the S&P index, outpacing the broader market. This marks a sharp contrast to their struggles in recent years. In 2024, the healthcare sector saw a modest gain of 2.06%, trailing the market's 25.02% return. A similar pattern was seen in 2023, with healthcare stocks rising just 2% while the overall market climbed 26%. Despite these challenges, healthcare remains a vital part of the economy, driven by increasing demand for medical products and services as the population ages. It is the fourth largest sector in the market, following technology, financials, and consumer discretionary. In the Russell MidCap Index, which tracks about 800 companies, healthcare ranks fifth, while in the small-cap Russell Index, it holds the third spot behind industrials and financials. Rob Haworth, senior investment strategy director for US Bank Asset Management, said: 'Investors can gain exposure to the healthcare sector by owning the S&P 500 through a passively managed index fund or ETF. Investors may also want to take a more selective approach, as the record demonstrates there can be varied performance within the healthcare sector.' Investors are taking a cautious approach as they assess potential policy shifts under the new administration. With a change in leadership at the Department of Health and Human Services, major healthcare companies could face greater scrutiny and may need to adjust to evolving policies. As the Trump administration's policies come into focus, concerns are emerging over potential budget cuts that could directly affect healthcare organizations. With the Department of Government Efficiency tasked with cutting $1 trillion from a $6 trillion budget, reductions in healthcare spending appear likely. On January 17, the House Ways and Means Committee released a list of possible cuts to support the extension of the 2017 Tax Cuts and Jobs Act. Among the proposals are eliminating the tax-exempt status of municipal bonds and potentially revoking the nonprofit status of hospitals and health systems. At the same time, hospital mergers and acquisitions have been steadily rebounding from pandemic-era lows, despite strict federal antitrust policies. However, it remains to be seen how future changes in regulatory leadership might influence M&A activity. Despite policy concerns, some billionaire investors remain confident in the healthcare sector's future. Carl Cook, with an estimated net worth of $10.3 billion, is among the wealthiest figures in the healthcare industry. He took over as CEO of his family's medical device company in 2011 following his father's death. In 2017, the company sold one of its subsidiaries to a drug delivery technology firm for $950 million. Cook also serves as president of a life sciences division focused on developing a cell therapy for urinary incontinence. Another billionaire investor in the healthcare sector is Ronda Stryker, with a net worth of $8.4 billion. Known for her contributions to medical technology and philanthropy, she has played a major role in advancing healthcare innovation. As the granddaughter of Dr. Homer Stryker, founder of a medical technology firm, she is committed to improving lives through medical advancements and social initiatives. A scientist in a lab running tests on a variety of biopharmaceuticals. To collect data for this article, we scanned Insider Monkey's database of billionaires' stock holdings and picked the top 10 companies operating in the healthcare sector with the highest number of billionaire investors in Q4 of 2024. The stocks are ranked in ascending order based on the number of billionaire investors. We have also mentioned the value of billionaire holdings for further insight. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Billionaire Investors: 23 Value of Billionaire Holdings: $13.7 billion Eli Lilly and Company (NYSE:LLY), a global pharmaceutical company based in Indianapolis, develops and markets medications across the US, Europe, Japan, China, and other regions. On February 26, Eli Lilly announced plans to invest at least $27 billion in building four new manufacturing facilities in the United States to meet the growing demand for its weight loss and diabetes treatments while also advancing new drug development. Eli Lilly and Company (NYSE:LLY) had a strong year in 2024, with annual revenue rising 32% from the previous year, surpassing its initial guidance by $4 billion. In the fourth quarter alone, revenue grew by 45%, driven by the success of newly launched products, which contributed over $3.1 billion, led by the rapid adoption of Mounjaro and Zepbound. Eli Lilly also saw solid growth in oncology, immunology, and neuroscience, while revenue from its non-incretin portfolio increased by 20%. Gross margin improved to 83.2% in the fourth quarter due to a favorable product mix. Research and development expenses rose by 18% due to investments in early and late-stage projects. Operating income more than doubled, reaching $5.6 billion, fueled by strong sales from new products. On February 28, Eli Lilly and Company (NYSE:LLY) announced that the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use has recommended approval of Jaypirca (pirtobrutinib), a reversible Bruton's tyrosine kinase (BTK) inhibitor. The treatment is intended for adults with relapsed or refractory chronic lymphocytic leukemia who have previously received a BTK inhibitor. The recommendation now awaits the European Commission's final review, which, if favorable, could serve as a significant catalyst for LLY. Overall, LLY ranks 1st on our list of the best healthcare stocks to buy according to billionaires. While we acknowledge the potential of LLY to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LLY but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
01-04-2025
- Business
- Yahoo
Is Intuitive Surgical (ISRG) One of the Best Healthcare Stocks to Buy According to Billionaires?
We recently published a list of 10 Best Healthcare Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Intuitive Surgical, Inc. (NASDAQ:ISRG) stands against other best healthcare stocks to invest in. Healthcare stocks experienced a challenging year in 2024, lagging behind high-growth sectors like tech and AI. Market uncertainties and policy challenges also created obstacles for certain segments within the industry. In the first half of the year, investors focused on technology and communication services, drawing attention away from healthcare. While the sector showed some improvement in the latter half as the market rally expanded, certain segments continued to struggle with supply and demand imbalances caused by the pandemic. One major factor was the increased demand for delayed medical procedures, as patients sought treatments they had postponed. This benefited healthcare facilities and medical device manufacturers but put financial pressure on managed-care insurers. Additionally, companies specializing in life sciences tools and services faced lower demand, as COVID-19 testing declined and pandemic-related inventory levels were still being reduced. Policy concerns also weighed on the sector, particularly for insurers offering Medicare Advantage plans, as reimbursement rates fell short. Uncertainty surrounding upcoming elections further contributed to the healthcare sector's struggles. On a positive note, innovation remained strong, as the biotech industry saw promising clinical developments, and advancements in treatments for conditions like obesity and diabetes fueled significant growth in the pharmaceutical sector. In the first quarter of 2025, healthcare stocks were among the strongest performers in the S&P index, outpacing the broader market. This marks a sharp contrast to their struggles in recent years. In 2024, the healthcare sector saw a modest gain of 2.06%, trailing the market's 25.02% return. A similar pattern was seen in 2023, with healthcare stocks rising just 2% while the overall market climbed 26%. Despite these challenges, healthcare remains a vital part of the economy, driven by increasing demand for medical products and services as the population ages. It is the fourth largest sector in the market, following technology, financials, and consumer discretionary. In the Russell MidCap Index, which tracks about 800 companies, healthcare ranks fifth, while in the small-cap Russell Index, it holds the third spot behind industrials and financials. Rob Haworth, senior investment strategy director for US Bank Asset Management, said: 'Investors can gain exposure to the healthcare sector by owning the S&P 500 through a passively managed index fund or ETF. Investors may also want to take a more selective approach, as the record demonstrates there can be varied performance within the healthcare sector.' Investors are taking a cautious approach as they assess potential policy shifts under the new administration. With a change in leadership at the Department of Health and Human Services, major healthcare companies could face greater scrutiny and may need to adjust to evolving policies. As the Trump administration's policies come into focus, concerns are emerging over potential budget cuts that could directly affect healthcare organizations. With the Department of Government Efficiency tasked with cutting $1 trillion from a $6 trillion budget, reductions in healthcare spending appear likely. On January 17, the House Ways and Means Committee released a list of possible cuts to support the extension of the 2017 Tax Cuts and Jobs Act. Among the proposals are eliminating the tax-exempt status of municipal bonds and potentially revoking the nonprofit status of hospitals and health systems. At the same time, hospital mergers and acquisitions have been steadily rebounding from pandemic-era lows, despite strict federal antitrust policies. However, it remains to be seen how future changes in regulatory leadership might influence M&A activity. Despite policy concerns, some billionaire investors remain confident in the healthcare sector's future. Carl Cook, with an estimated net worth of $10.3 billion, is among the wealthiest figures in the healthcare industry. He took over as CEO of his family's medical device company in 2011 following his father's death. In 2017, the company sold one of its subsidiaries to a drug delivery technology firm for $950 million. Cook also serves as president of a life sciences division focused on developing a cell therapy for urinary incontinence. Another billionaire investor in the healthcare sector is Ronda Stryker, with a net worth of $8.4 billion. Known for her contributions to medical technology and philanthropy, she has played a major role in advancing healthcare innovation. As the granddaughter of Dr. Homer Stryker, founder of a medical technology firm, she is committed to improving lives through medical advancements and social initiatives. A medical team performing minimally invasive surgery with a da Vinci Surgical System. To collect data for this article, we scanned Insider Monkey's database of billionaires' stock holdings and picked the top 10 companies operating in the healthcare sector with the highest number of billionaire investors in Q4 of 2024. The stocks are ranked in ascending order based on the number of billionaire investors. We have also mentioned the value of billionaire holdings for further insight. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Billionaire Investors: 18 Value of Billionaire Holdings: $5 billion Intuitive Surgical, Inc. (NASDAQ:ISRG), a California-based company, develops and markets technologies that help physicians and healthcare providers improve the quality and accessibility of minimally invasive care in the US and globally. On January 24, RBC Capital Markets reaffirmed its positive stance on the stock, maintaining an Outperform rating and setting a price target of $641 on the shares. Analysts appreciated the firm's strong fourth-quarter performance in 2024. ISRG ranks high on our list of the best healthcare stocks to invest in. In 2024, Intuitive Surgical, Inc. (NASDAQ:ISRG) reported $8.4 billion in revenue, reflecting a 17% increase from 2023, with 84% of it being recurring. Operating expenses remained at the lower end of their estimated range, while product margins improved due to higher shipment volumes, better factory utilization, and cost efficiencies in components, shipping, and logistics. As a result, net income rose by 29% compared to the previous year. For the fourth quarter, revenue reached $2.41 billion, marking a 25% year-over-year increase. Systems revenue grew by 36%, driven by a 19% rise in da Vinci system placements, a higher average selling price, and a greater mix of purchases. By the end of the year, the company held $8.8 billion in cash and investments, up from $8.3 billion in the third quarter. This increase was due to cash generated from operations, partially offset by $312 million in capital expenditures. On January 27, Intuitive Surgical, Inc. (NASDAQ:ISRG) announced a $45 million donation to the Intuitive Foundation to further its mission of reducing disease and suffering worldwide. The funds will support philanthropic initiatives, research, and education aimed at improving patient outcomes. With this contribution, Intuitive's total donations to the Foundation since its establishment in 2018 have surpassed $170 million. Overall, ISRG ranks 3rd on our list of the best healthcare stocks to buy according to billionaires. While we acknowledge the potential of ISRG to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ISRG but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
01-04-2025
- Business
- Yahoo
Is Bristol-Myers Squibb (BMY) One of the Best Healthcare Stocks to Buy According to Billionaires?
We recently published a list of 10 Best Healthcare Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Bristol-Myers Squibb Company (NYSE:BMY) stands against other best healthcare stocks to invest in. Healthcare stocks experienced a challenging year in 2024, lagging behind high-growth sectors like tech and AI. Market uncertainties and policy challenges also created obstacles for certain segments within the industry. In the first half of the year, investors focused on technology and communication services, drawing attention away from healthcare. While the sector showed some improvement in the latter half as the market rally expanded, certain segments continued to struggle with supply and demand imbalances caused by the pandemic. One major factor was the increased demand for delayed medical procedures, as patients sought treatments they had postponed. This benefited healthcare facilities and medical device manufacturers but put financial pressure on managed-care insurers. Additionally, companies specializing in life sciences tools and services faced lower demand, as COVID-19 testing declined and pandemic-related inventory levels were still being reduced. Policy concerns also weighed on the sector, particularly for insurers offering Medicare Advantage plans, as reimbursement rates fell short. Uncertainty surrounding upcoming elections further contributed to the healthcare sector's struggles. On a positive note, innovation remained strong, as the biotech industry saw promising clinical developments, and advancements in treatments for conditions like obesity and diabetes fueled significant growth in the pharmaceutical sector. In the first quarter of 2025, healthcare stocks were among the strongest performers in the S&P index, outpacing the broader market. This marks a sharp contrast to their struggles in recent years. In 2024, the healthcare sector saw a modest gain of 2.06%, trailing the market's 25.02% return. A similar pattern was seen in 2023, with healthcare stocks rising just 2% while the overall market climbed 26%. Despite these challenges, healthcare remains a vital part of the economy, driven by increasing demand for medical products and services as the population ages. It is the fourth largest sector in the market, following technology, financials, and consumer discretionary. In the Russell MidCap Index, which tracks about 800 companies, healthcare ranks fifth, while in the small-cap Russell Index, it holds the third spot behind industrials and financials. Rob Haworth, senior investment strategy director for US Bank Asset Management, said: 'Investors can gain exposure to the healthcare sector by owning the S&P 500 through a passively managed index fund or ETF. Investors may also want to take a more selective approach, as the record demonstrates there can be varied performance within the healthcare sector.' Investors are taking a cautious approach as they assess potential policy shifts under the new administration. With a change in leadership at the Department of Health and Human Services, major healthcare companies could face greater scrutiny and may need to adjust to evolving policies. As the Trump administration's policies come into focus, concerns are emerging over potential budget cuts that could directly affect healthcare organizations. With the Department of Government Efficiency tasked with cutting $1 trillion from a $6 trillion budget, reductions in healthcare spending appear likely. On January 17, the House Ways and Means Committee released a list of possible cuts to support the extension of the 2017 Tax Cuts and Jobs Act. Among the proposals are eliminating the tax-exempt status of municipal bonds and potentially revoking the nonprofit status of hospitals and health systems. At the same time, hospital mergers and acquisitions have been steadily rebounding from pandemic-era lows, despite strict federal antitrust policies. However, it remains to be seen how future changes in regulatory leadership might influence M&A activity. Despite policy concerns, some billionaire investors remain confident in the healthcare sector's future. Carl Cook, with an estimated net worth of $10.3 billion, is among the wealthiest figures in the healthcare industry. He took over as CEO of his family's medical device company in 2011 following his father's death. In 2017, the company sold one of its subsidiaries to a drug delivery technology firm for $950 million. Cook also serves as president of a life sciences division focused on developing a cell therapy for urinary incontinence. Another billionaire investor in the healthcare sector is Ronda Stryker, with a net worth of $8.4 billion. Known for her contributions to medical technology and philanthropy, she has played a major role in advancing healthcare innovation. As the granddaughter of Dr. Homer Stryker, founder of a medical technology firm, she is committed to improving lives through medical advancements and social initiatives. A pharmacy shelves stocked with pharmaceutical drugs awaiting distribution. To collect data for this article, we scanned Insider Monkey's database of billionaires' stock holdings and picked the top 10 companies operating in the healthcare sector with the highest number of billionaire investors in Q4 of 2024. The stocks are ranked in ascending order based on the number of billionaire investors. We have also mentioned the value of billionaire holdings for further insight. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Billionaire Investors: 17 Value of Billionaire Holdings: $1.9 billion Bristol-Myers Squibb Company (NYSE:BMY), headquartered in Princeton, New Jersey, develops and distributes biopharmaceutical products globally. The company focuses on areas such as oncology, hematology, immunology, cardiovascular health, and neuroscience. On March 3, Bristol-Myers Squibb announced that its Board of Directors approved a quarterly dividend of $0.62 per share. It is to be paid on May 1, to shareholders on record as of April 4. It ranks 8th on our list of the best healthcare stocks. In 2024, Bristol-Myers Squibb Company (NYSE:BMY)'s portfolio experienced strong double digit revenue growth, driven by BREYANZI, Krazati, Reblozyl, and Opdivo. The firm prioritized operational efficiency and financial discipline, redirecting resources to high-growth opportunities and achieving most of its targeted $1.5 billion in savings. Fourth quarter sales increased by 9% to approximately $12.3 billion, driven by higher volume and inventory levels. As of December 31, BMY had a solid financial position with around $11.2 billion in cash equivalents and marketable securities, generating $4.4 billion in operating cash flow for the quarter. On March 14, Bristol-Myers Squibb Company (NYSE:BMY) revealed that the European Commission approved Breyanzi, a CD19-directed CAR T cell therapy, for adults with relapsed or refractory follicular lymphoma who have undergone at least two prior systemic treatments. Overall, BMY ranks 8th on our list of the best healthcare stocks to buy according to billionaires. While we acknowledge the potential of BMY to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BMY but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
01-04-2025
- Business
- Yahoo
UnitedHealth Group (UNH): Among the Best Healthcare Stocks to Buy According to Billionaires
We recently published a list of 10 Best Healthcare Stocks to Buy According to Billionaires. In this article, we are going to take a look at where UnitedHealth Group Incorporated (NYSE:UNH) stands against other best healthcare stocks to invest in. Healthcare stocks experienced a challenging year in 2024, lagging behind high-growth sectors like tech and AI. Market uncertainties and policy challenges also created obstacles for certain segments within the industry. In the first half of the year, investors focused on technology and communication services, drawing attention away from healthcare. While the sector showed some improvement in the latter half as the market rally expanded, certain segments continued to struggle with supply and demand imbalances caused by the pandemic. One major factor was the increased demand for delayed medical procedures, as patients sought treatments they had postponed. This benefited healthcare facilities and medical device manufacturers but put financial pressure on managed-care insurers. Additionally, companies specializing in life sciences tools and services faced lower demand, as COVID-19 testing declined and pandemic-related inventory levels were still being reduced. Policy concerns also weighed on the sector, particularly for insurers offering Medicare Advantage plans, as reimbursement rates fell short. Uncertainty surrounding upcoming elections further contributed to the healthcare sector's struggles. On a positive note, innovation remained strong, as the biotech industry saw promising clinical developments, and advancements in treatments for conditions like obesity and diabetes fueled significant growth in the pharmaceutical sector. In the first quarter of 2025, healthcare stocks were among the strongest performers in the S&P index, outpacing the broader market. This marks a sharp contrast to their struggles in recent years. In 2024, the healthcare sector saw a modest gain of 2.06%, trailing the market's 25.02% return. A similar pattern was seen in 2023, with healthcare stocks rising just 2% while the overall market climbed 26%. Despite these challenges, healthcare remains a vital part of the economy, driven by increasing demand for medical products and services as the population ages. It is the fourth largest sector in the market, following technology, financials, and consumer discretionary. In the Russell MidCap Index, which tracks about 800 companies, healthcare ranks fifth, while in the small-cap Russell Index, it holds the third spot behind industrials and financials. Rob Haworth, senior investment strategy director for US Bank Asset Management, said: 'Investors can gain exposure to the healthcare sector by owning the S&P 500 through a passively managed index fund or ETF. Investors may also want to take a more selective approach, as the record demonstrates there can be varied performance within the healthcare sector.' Investors are taking a cautious approach as they assess potential policy shifts under the new administration. With a change in leadership at the Department of Health and Human Services, major healthcare companies could face greater scrutiny and may need to adjust to evolving policies. As the Trump administration's policies come into focus, concerns are emerging over potential budget cuts that could directly affect healthcare organizations. With the Department of Government Efficiency tasked with cutting $1 trillion from a $6 trillion budget, reductions in healthcare spending appear likely. On January 17, the House Ways and Means Committee released a list of possible cuts to support the extension of the 2017 Tax Cuts and Jobs Act. Among the proposals are eliminating the tax-exempt status of municipal bonds and potentially revoking the nonprofit status of hospitals and health systems. At the same time, hospital mergers and acquisitions have been steadily rebounding from pandemic-era lows, despite strict federal antitrust policies. However, it remains to be seen how future changes in regulatory leadership might influence M&A activity. Despite policy concerns, some billionaire investors remain confident in the healthcare sector's future. Carl Cook, with an estimated net worth of $10.3 billion, is among the wealthiest figures in the healthcare industry. He took over as CEO of his family's medical device company in 2011 following his father's death. In 2017, the company sold one of its subsidiaries to a drug delivery technology firm for $950 million. Cook also serves as president of a life sciences division focused on developing a cell therapy for urinary incontinence. Another billionaire investor in the healthcare sector is Ronda Stryker, with a net worth of $8.4 billion. Known for her contributions to medical technology and philanthropy, she has played a major role in advancing healthcare innovation. As the granddaughter of Dr. Homer Stryker, founder of a medical technology firm, she is committed to improving lives through medical advancements and social initiatives. A senior healthcare professional giving advice to a patient in a clinic. To collect data for this article, we scanned Insider Monkey's database of billionaires' stock holdings and picked the top 10 companies operating in the healthcare sector with the highest number of billionaire investors in Q4 of 2024. The stocks are ranked in ascending order based on the number of billionaire investors. We have also mentioned the value of billionaire holdings for further insight. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Billionaire Investors: 23 Value of Billionaire Holdings: $8.1 billion UnitedHealth Group Incorporated (NYSE:UNH) operates in the healthcare sector in the US and globally, with four main segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. On February 24, the company's board of directors authorized a quarterly dividend of $2.10 per share. The dividend was paid on March 18, 2025. In 2024, UnitedHealth Group Incorporated (NYSE:UNH) generated over $400 billion in revenue, with adjusted earnings per share of $27.66, aligning with its earlier projections. Over the year, it focused on strengthening its future position by enhancing consumer experience, accelerating innovation, and refining its business strategy for long-term growth. Around $17 billion was invested in expansion efforts, while more than $16 billion was returned to shareholders through dividends and share repurchases. As one of the best healthcare stocks, the company expects operating cash flow to reach approximately $33 billion in 2025, or 1.2 times its net income. On March 20, UnitedHealth Group Incorporated (NYSE:UNH)'s Optum Rx announced changes to its payment models to better align with pharmacy costs affected by manufacturer pricing. The updates take effect immediately, with full implementation by January 2028. This shift will benefit more than 24,000 independent community pharmacies within Optum Rx's non-affiliated network and aims to provide consumers with more consistent and affordable pricing. Overall, UNH ranks 2nd on our list of the best healthcare stocks to buy according to billionaires. While we acknowledge the potential of UNH to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
