Healthcare stocks are just about the hottest sector in the books right now.
I mean, world leaders have already pledged $8 billion to companies developing a coronavirus vaccine, and that doesn’t even include the billions that the U.S. government has poured into companies on its own.
As the only hope for a return to the world’s normalcy, the healthcare sector has received an unprecedented influx of cash. Since its March 23 low, the Healthcare Select Sector SPDR Fund, an ETF that tracks healthcare stocks, has gained 46%. At the time of writing, it’s sitting at a new all-time high.
Now, over 15% of the S&P 500 is made up of healthcare stocks. With so many names to choose from, it can be hard to know where to put your money. Just because the sector is on fire doesn’t mean every stock within it will put cash in your pocket.
But these names could be your next profit.
Here are the top five healthcare stocks to watch right now…
- Moderna Inc. (NASDAQ: MRNA)
This name has been hitting headlines almost every day since the biotech company first dove into developing a vaccine for COVID-19. After reporting positive results from their vaccine trials in mid-July, MRNA is now in phase three. And this company is where the U.S. government is putting its money…
With a $995 million backing from the federal government and a finalized 100-million-dose deal, MRNA is loaded with cash right now.
In mid-July, MRNA was up almost 400% for the year. Since then, it’s dropped a bit – but the stakes are high for this stock, and if it comes out on top of the vaccine war, it’ll only move higher.
- Teladoc Health Inc. (NYSE: TDOC)
We’ve talked about TDOC before. Unlike MRNA, this healthcare company isn’t investing its money into a COVID vaccine. Instead, it’s taking the digital route.
See, when restaurants, stores, and offices first started closing up shop in mid-March, doctors’ offices were on the list. People didn’t want to leave the house unless absolutely necessary – and they especially didn’t want to step foot into the coughing, sneezing germ pool that makes up a medical waiting room.
Teladoc allows people to visit with doctors virtually, and it started taking off alongside the coronavirus. We first mentioned it all the way back in March – and boy, has it grown since then. Currently, TDOC is up over 170% year-to-date.
- Novavax Inc. (NASDAQ: NVAX)
NVAX was just a small-cap name based in a small Maryland town before COVID-19. Now, it’s one of the frontrunners in the race to develop a coronavirus vaccine.
With $2 billion in grant money backing it up, the company’s set to start phase three trials of its COVID vaccine this month. And its stock is banking on success. Since January 1, NVAX is up a whopping 2,425%.
- Regeneron Pharmaceuticals Inc. (NASDAQ: REGN)
REGN is another company participating in the COVID-19 vaccine race, and it has support from some of the most popular investment companies in the country.
During the second quarter, BlackRock, for example, bought 3.19 million shares of the company. And when money that big is flowing into a company, it’s definitely a stock you’ll want to watch.
REGN has been steadily rising since March, up almost 80% since its 2020 low.
And even if REGN doesn’t win the vaccine race, it’s okay – because the pharmaceutical company has a plethora of other drugs and treatments to back it up. Either way, this is a stock headed for the sky.
This one isn’t a stock – but it could be even better.
See, this startup has more firepower than Big Pharma. It’s made up of an absolute dream team of industry titans, and it has the potential to go from $40 million to $2 billion in just two years.
Each of the men on this company’s executive team is an absolute heavyweight in his field:
- One man already built and sold two multibillion-dollar companies over his legendary 30-year career in pharmaceuticals. And if you ask him, he’ll tell you he’s the least qualified member of this startup.
- Another is responsible for some historic product launches – which bring in close to $50 billion in sales each year.
- And a third team member is the company’s “secret weapon” – the man they believe virtually guarantees they’ll reach a minimum $2 billion valuation in the next two years (many multiples higher than their current valuation of $40 million).
One of my colleagues just interviewed the doctor who founded this meteoric start up. And during their time together, he revealed exactly how you can take a piece of the potential profits.
To watch, just click here.
Now, you can play any of the first four names a number of ways…
First, you could buy the stock. But here’s the thing – these names are on fire right now. NVAX is up over 2,000% this year! That means straight stock shares can be expensive. 100 shares of NVAX will run you $11,200.
But if you buy a call option, you can pocket cash on healthcare’s rise for limited risk… and higher rewards.
To your success,
Tom Gentile
