Sectors & IndustriesHealthcare

Best Healthcare Stocks to Buy Now (2022)

Top healthcare stocks in 2022 ranked by overall Zen Score. See the best healthcare stocks to buy now, according to analyst forecasts for the healthcare sector.

According to Zen Score, the 3 best healthcare stocks to buy right now are:

Staar Surgical Co (NASDAQ:STAA) is the top healthcare stock with a Zen Score of 74, which is 43 points higher than the healthcare sector average of 31. It passed 25 out of 33 due diligence checks and has strong fundamentals. Staar Surgical Co has seen its stock lose -46.44% over the past year, underperforming other healthcare stocks by -10 percentage points.

Staar Surgical Co has an average 1 year price target of $107.80, an upside of 47.77% from Staar Surgical Co's current stock price of $72.95.

Staar Surgical Co stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Staar Surgical Co, 80% have issued a Strong Buy rating, 20% have issued a Buy, 0% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Horizon Therapeutics Public Co (NASDAQ:HZNP) is the second best healthcare stock with a Zen Score of 73, which is 42 points higher than the healthcare sector average of 31. It passed 24 out of 33 due diligence checks and has strong fundamentals. Horizon Therapeutics Public Co has seen its stock lose -43.46% over the past year, underperforming other healthcare stocks by -7 percentage points.

Horizon Therapeutics Public Co has an average 1 year price target of $111.29, an upside of 79% from Horizon Therapeutics Public Co's current stock price of $62.17.

Horizon Therapeutics Public Co stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Horizon Therapeutics Public Co, 42.86% have issued a Strong Buy rating, 42.86% have issued a Buy, 14.29% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Incyte (NASDAQ:INCY) is the third best healthcare stock with a Zen Score of 73, which is 42 points higher than the healthcare sector average of 31. It passed 24 out of 33 due diligence checks and has strong fundamentals. Incyte has seen its stock lose -4.07% over the past year, overperforming other healthcare stocks by 32 percentage points.

Incyte has an average 1 year price target of $84.13, an upside of 26.62% from Incyte's current stock price of $66.44.

Incyte stock has a consensus Hold recommendation according to Wall Street analysts. Of the 9 analysts covering Incyte, 0% have issued a Strong Buy rating, 33.33% have issued a Buy, 55.56% have issued a Hold, while 11.11% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 74 healthcare stocks that have issued dividends in the past year, the 3 healthcare stocks with the highest dividend yields are:

Healthcare Services Group (NASDAQ:HCSG) has an annual dividend yield of 6.89%, which is 5 percentage points higher than the healthcare sector average of 2.2%. Healthcare Services Group's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Healthcare Services Group's dividend has shown consistent growth over the last 10 years.

Healthcare Services Group's dividend payout ratio of 210.5% indicates that its high dividend yield might not be sustainable for the long-term.

Gsk (NYSE:GSK) has an annual dividend yield of 6.58%, which is 4 percentage points higher than the healthcare sector average of 2.2%. Gsk's dividend payout is not stable, having dropped more than 10% ten times in the last 10 years. Gsk's dividend has not shown consistent growth over the last 10 years.

Gsk's dividend payout ratio of 92.7% indicates that its high dividend yield might not be sustainable for the long-term.

Koninklijke Philips Nv (NYSE:PHG) has an annual dividend yield of 6.45%, which is 4 percentage points higher than the healthcare sector average of 2.2%. Koninklijke Philips Nv's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Koninklijke Philips Nv's dividend has not shown consistent growth over the last 10 years.

Koninklijke Philips Nv's dividend payout ratio of 24.8% indicates that its high dividend yield is sustainable for the long-term.

Healthcare stocks were up 0.4% in the last day, and down -5.58% over the last week. Avenue Therapeutics was the among the top gainers in the healthcare sector, gaining 106.25% yesterday.

Avenue Therapeutics shares are trading higher. The stock has been volatile after the company last week announced a 1-for-15 reverse split and received meeting minutes from the FDA regarding a meeting conducted on August 9, 2022, for IV Tramadol.

Based on WallStreetZen's Valuation Score, the 3 most undervalued healthcare stocks right now are:

Molecular Templates (NASDAQ:MTEM) is the most undervalued healthcare stock based on WallStreetZen's Valuation Score. Molecular Templates has a valuation score of 100, which is 66 points higher than the healthcare sector average of 34. It passed 7 out of 7 valuation due diligence checks.

Molecular Templates's stock has dropped -91.21% in the past year. It has underperformed other stocks in the healthcare sector by -55 percentage points.

Vir Biotechnology (NASDAQ:VIR) is the second most undervalued healthcare stock based on WallStreetZen's Valuation Score. Vir Biotechnology has a valuation score of 100, which is 66 points higher than the healthcare sector average of 34. It passed 7 out of 7 valuation due diligence checks.

Vir Biotechnology's stock has dropped -58.37% in the past year. It has underperformed other stocks in the healthcare sector by -22 percentage points.

Moderna (NASDAQ:MRNA) is the third most undervalued healthcare stock based on WallStreetZen's Valuation Score. Moderna has a valuation score of 86, which is 52 points higher than the healthcare sector average of 34. It passed 6 out of 7 valuation due diligence checks.

Moderna's stock has dropped -70.1% in the past year. It has underperformed other stocks in the healthcare sector by -34 percentage points.