Healthcare Stocks Worth Watching : MRK, AMGN and SNY

As we have seen how tech heavy Nasdaq has been trending downside for the past week, with U.S. CPI data coming later today (10 Aug 2023).

As I have mentioned before, one of my defensive sectors is healthcare, but this sector is pretty wide, I think it would be better to look at some of the stocks which are making news.

In this article I would like to discuss how investing in these healthcare stocks that tackle public health issues can be beneficial.

Here are several reasons why they can be beneficial. I will make reference to some of the stocks that I will be watching.

Public health issues, such as infectious diseases, chronic conditions, and pandemics, create a consistent and often growing demand for healthcare products and services.

As the population continues to grow and age, the need for effective treatments and solutions increases, driving demand for healthcare stocks.

One good example I personally feel is cholesterol issues. As economy advances, it is no longer because of poor diet that people began to have health issues.

Public health issues are typically long-term challenges that require ongoing research, development, and innovation.

This can provide healthcare companies with a stable and consistent revenue stream, making them attractive investments for those seeking long-term stability in their portfolios.

Their antiviral pills which demonstrated efficacy in trials of adults with COVID-19 who are at high risk of serious illness are now both in use.

The drugs are being studied to see if they can prevent infection in people exposed to the virus. This might be coming back to be in focus as new variants has started to appear, though not very contagious, but it does not hurt to be on the defensive side.

Healthcare companies working on public health issues often invest heavily in research and development to create innovative solutions.

These innovations can lead to breakthrough treatments, diagnostic tools, and therapies that not only improve patient outcomes but also create potential for significant financial returns.

Governments and public health organizations often allocate substantial funds to address pressing health concerns.

Companies involved in tackling these issues can benefit from government contracts, grants, and partnerships, which can further boost their financial prospects.

Many public health issues, such as infectious disease outbreaks, have a global impact.

Companies that successfully address these issues can expand their reach to international markets, potentially leading to higher revenue and market share.

Investing in healthcare stocks that address public health issues aligns with ethical and social responsibility values.

It allows investors to contribute to the well-being of society by supporting companies that are working to improve public health and save lives.

Companies that develop solutions for public health issues often receive expedited regulatory approvals and fast-track status for their products.

This can lead to quicker commercialization and revenue generation.

Including healthcare stocks that address public health issues in your investment portfolio can provide diversification.

These stocks may have a different risk profile compared to other sectors, helping to spread risk and potentially enhance overall portfolio stability.

The demand for healthcare products and services is relatively resilient to economic downturns.

People continue to require medical care regardless of economic conditions, which can help healthcare companies maintain stable revenues during uncertain times.

Public health issues often emerge or evolve due to changing lifestyles, environmental factors, and demographics.

Companies that can adapt and provide solutions to these evolving challenges stand to benefit from changing market dynamics.

While it is brave and contentious for this new world for pharmaceutical and biotechnology companies.

It's important to note that the healthcare sector is complex and subject to regulatory changes, technological advancements, and clinical developments, which can all impact the performance of healthcare stocks.

I have placed these 3 stocks under my long term portfolios who can help to shoulder any impact from the volatility of the market.

Appreciate if you could share your thoughts in the comment section whether you have any healthcare stocks in your portfolio, I personally feel that we should have a diversified portfolio who contains stocks that are generally stable.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.