The healthcare sector continues to expand at a remarkable pace, fuelled by advancements in technology and a growing emphasis on healthcare innovation. This rapid growth is transforming patient care, improving outcomes and making healthcare services more accessible and efficient. Dive deeper into the core of what Healthtech is and how you can invest in it.
Investor confidence in healthcare for the second half of 2024 remains robust, supported by substantial funding and a steady stream of new developments. According to Tracxn, healthcare funding has seen significant growth, reflecting the sector’s resilience and potential for long-term returns [1].
This article focuses on identifying top Healthtech companies that are particularly suitable for retail investors seeking to capitalise on this dynamic market.
4 Healthcare Firms You Can Invest In
1. Teladoc Health (TDOC) [2]
Teladoc Health, Inc. is a global leader in whole-person virtual care, providing technology that connects patients with trusted expertise to improve health outcomes. The company offers a range of services, including primary care, mental health support and chronic condition management.
Teladoc’s mission is to make virtual care the first step in any healthcare journey. They focus on creating a unified and personalised consumer experience by extending care provider reach, maintaining clinical quality and leveraging smart data to enable better decision-making.
Teladoc Health has reported several key achievements and activities in recent times, highlighting its ongoing growth and operational improvements. In terms of financial results, the company has shown notable revenue growth while working on reducing its net loss. For example, in the first quarter of 2024, Teladoc Health’s Integrated Care segment revenue increased by 8% to $377.1 million, although the company reported a net loss of $81.9 million [3].
Operationally, Teladoc Health is focused on integrating and optimising its operations and systems. This includes significant upgrades to its customer relationship management (CRM) and enterprise resource planning (ERP) systems, aiming to enhance efficiency and service quality.
Despite facing economic challenges, Teladoc Health has achieved significant growth is adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation), which rose by 33% to $328.1 million [4]. This growth reflects the company’s resilience and its ability to adapt and thrive in a competitive and evolving market.
Why invest in Teladoc Health?
Teladoc’s stock has recently become more affordable, presenting a potential buying opportunity for investors. As of 21 June 2024, Teladoc Health’s stock closed at $9.71, a stark contrast to its all-time high of $294.54 on 8 February 2021. This represents a substantial decrease, with the current price being significantly lower than the 52-week high of $30.41 and the average stock price of $18.33 over the last 52 weeks. This significant drop has made Teladoc’s stock more affordable [5].
For the full fiscal year ended 31 December 2020, Teladoc Health saw its revenue soar by 98% as it quickly became a household name and a COVID stock darling. This surge in demand during the pandemic propelled Teladoc’s stock price by over 130% from January 2020 to December, far outpacing the S&P 500’s return of 18.4% over the same period [6].
However, 2021 saw Teladoc’s stock trading in a downward spiral, now down approximately 68% from its highs as investors react to potential interest rate hikes and inflation concerns. Despite these fluctuations, analysts remain optimistic about the stock’s future, with some price targets exceeding $100. As a demand for virtual healthcare services continues to grow, Teladoc’s strong market position could lead to substantial gains [7].
Teladoc’s growth potential is underpinned by the increasing adoption of telehealth services, which was accelerated by the COVID-19 pandemic. The company continues to expand its service offerings and global reach, addressing a critical need for accessible healthcare. Recent strategic partnerships and acquisitions have further strengthened its market position and technological capabilities.
Teladoc Health experienced a decline in its stock price in March 2024 and has since been on a continuous decline.
Teladoc Health (TDOC) is listed on the NASDAQ exchange. You can trade Teladoc Health stock (TDOC: ABT) through CFDs on a brokerage platform like Vantage.
2. Intuitive Surgical (ISRG)
Intuitive Surgical, Inc. is an American biotechnology company renowned for developing, manufacturing and marketing robotic products designed for minimally invasive surgery. Their flagship product, the da Vinci Surgical System, enhances clinical outcomes by enabling precise and less invasive procedures. The da Vinci system allows surgeons to perform complex surgeries with greater precision through robotic assistance and it utilised in various medical fields, including urology, gynaecology, general surgery and more. Its advanced features make it a preferred choice for hospitals and healthcare providers.
Financially, Intuitive Surgical reported a robust 17% increase in revenue for the fourth quarter of 2023, reaching $1.93 billion [8]. This financial growth underscores the company’s strong market presence and the increasing demand for their surgical systems.
Why invest in Intuitive Surgical?
Intuitive Surgical’s innovative technology and strong market position contribute significantly to its growth potential. The company has a track record of steady profitability and has outlined a clear plan for continued revenue and earnings growth [9]. This financial stability makes it an attractive option for investors seeking potential reliable returns.
Moreover, there is significant optimism around Intuitive Surgical’s recent quarterly results and its advancements in artificial intelligence, which are expected to drive future growth. The integration of AI into their robotic systems enhances the precision and effectiveness of surgeries, positioning the company at the forefront of technological innovation in healthcare [10].
Additionally, Intuitive Surgical is strategically expanding into integrated care and consistently innovating in product development. These efforts are expected to create new revenue streams and contribute to future earnings momentum, further solidifying its market leadership and potential for long-term growth [11].
Intuitive Surgical’s stock chart shows a steady increase after a dip in October 2023 at $258.49.
Intuitive Surgical (ISRG) is listed on the NASDAQ exchange. You can trade Abbott Laboratories stock (NYSE: ABT) through CFDs on a brokerage platform like Vantage.
3. Abbott Laboratories (ABT)
Abbott Laboratories is a diversified healthcare company based on the United States, focusing on developing, manufacturing and selling a wide range of medical devices, diagnostics products and nutritional products. Here’s a breakdown of their primary areas of focus:
Medical Devices: Abbott offers products for various specialities, including heart health (pacemakers), diabetes management and pain management. These devices are critical for patients requiring ongoing health monitoring and intervention.
Diagnostics: The company provides a broad range of tests and equipment used in laboratories and rapid-point-of-care situations. This includes blood tests, pregnancy tests and COVID-19 tests, ensuring timely and accurate diagnostics essential for effective healthcare delivery.
Nutritional Products: Abbott’s well-known brands in adult and paediatric nutrition include Ensure for adults and Similac for babies. These products are trusted by consumers worldwide for their nutritional benefits and quality.
In 2013, Abbott spun off its research-based pharmaceuticals business into a separate company, AbbVie. While Abbott may still produce some medications, its primary focus remains on medical devices, diagnostics and nutrition.
Why invest in Abbott Laboratories?
Investing in Abbott Laboratories offers a compelling opportunity due to its recent progress in FDA approvals, strong financial performance, consistent dividend growth and ongoing innovation.
Firstly, Abbott’s financial health is robust, with a first-quarter profit of $1.23 billion, net income of 70 cents per share, and adjusted earnings of 98 cents per share [12]. This strong performance indicates the company’s capacity to generate substantial revenue and profit, even in challenging conditions.
Moreover, Abbott has increased its quarterly dividend for the 52nd consecutive year, showcasing financial stability and commitment to shareholders [13]. This consistent dividend growth is a testament to Abbott’s solid financial management and investor appeal.
On 12 October 2023, Abbott Laboratories experienced a drop in its stock price and closed at $90.19, however there is a gradual uptrend starting January 2024.
Abbott Laboratories (ABT) is listed on the NASDAQ exchange. You can trade Abbott Laboratories stock (NYSE: ABT) through CFDs on a brokerage platform like Vantage.
4. Thermo Fisher Scientific (TMO)
Thermo Fisher Scientific is a global leader in delivering technology, pharmaceutical and biotechnology services. Their offerings include products like the TaqPath Duraplex 1-Step RT-qPCR Master Mix which are all tools used for detecting viruses and bacteria, and services such as the biobanking learning centre and support centres. They empower scientists across various fields, including pharmaceuticals, biotechnology, academia, government, environmental research and clinical laboratories.
Why invest in Thermo Fisher Scientific
Investing in Thermo Fisher Scientific offers numerous advantages due to its strong corporate social responsibility (CSR), innovation and scientific leadership, recognition through industry awards and support for women in STEM.
Firstly, Thermo Fisher’s CSR efforts underscore its commitment to society and stakeholders, focusing on environmental, social and governance (ESG) priorities.
Their ESG strategy revolves around four pillars: Operations, Colleagues, Communities and Environment. They have implemented sustainable practices to reduce their carbon footprint and enhance energy efficiency including a responsible supply chain management, energy efficiency and waste reduction. Besides that, Thermo Fisher innovates to serve customers while advancing its net-zero roadmap by 2050 which involves reducing greenhouse gas emissions, conserving resources and promoting sustainable practices.
Additionally, Thermo Fisher is a pivotal player in life sciences research, accelerating breakthroughs by providing cutting-edge technologies and solutions. During the pandemic, the company was at the forefront of virus research, testing and supporting vaccine development and distribution.
Thermo Fisher’s innovation is also recognised through prestigious industry awards. The company received R&D Awards for three innovations that aid research and scientists in life science applications, including bioproduction and small-molecule analysis [14]. These awards highlight Thermo Fisher’s dedication to developing advanced tools that propel scientific discovery.
Moreover, Thermo Fisher celebrates and supports women in STEM, honouring trailblazers like Gertrude Elion, whose work on antivirals paved the way for groundbreaking treatments such as AZT, the first AIDS drug. This commitment to diversify and inclusion fosters an environment where innovation thrives, and all contributions are valued.
Thermo Fisher’s stock price faced a sharp decline in late October 2023 but went through a gradual recovery in January 2024.
Thermo Fisher Scientific Inc (TMO) is listed on the NASDAQ exchange and you can trade shares of TMO through CFDs on a brokerage platform like Vantage.
Conclusion
“We also expect a strong development of more affordable and more efficient care settings, particularly in specialist outpatient and ambulatory care settings.”
Arnaud Bauer, Partner, LEK Consulting
The healthcare sector is experiencing remarkable growth, driven by technological advancements and an increased focus on innovation. Investor confidence in healthcare remains strong in the second half of 2024, supported by substantial funding and continuous developments. These four top Healthtech companies – Teladoc Health, Intuitive Surgical, Abbott Laboratories and Thermo Fisher Scientific – presents promising opportunities for retail investors looking to capitalise on this dynamic market.
Interested in investing in the Healthtech sector? There’s no better time than now as the industry continues to flourish with groundbreaking innovations that will redefine our approach to healthcare.
Discover more of what the Healthtech sector has to offer on The Vantage View or stay updated with the current new with The Vantage Markets Podcast.
References
- “Healthcare sector overview – Tracxn.” Healthcare – Sector Landscape and Marketmap – Tracxn. Accessed 18 June 2024.
- “Teladoc Health’s Investor Relations – Teladoc Health.” Teladoc Health, Inc. – Investors. Accessed 18 June 2024.
- “Teladoc Health Reports First Quarter 2024 Results – Teladoc Health.” Teladoc Health, Inc. – Teladoc Health Reports First Quarter 2024 Results. Accessed 18 June 2024.
- “Teladoc Health Inc (TDOC) Reports Growth Amidst Challenges in 2023 Earnings – yahoo!finance.” Teladoc Health Inc (TDOC) Reports Growth Amidst Challenges in 2023 Earnings (yahoo.com). Accessed 18 June 2024.
- “Teladoc Health, Inc. – yahoo!finance.” Teladoc Health, Inc. (TDOC) Stock Historical Prices & Data – Yahoo Finance. Accessed 27 June 2024.
- “Is Now a Good Time to Buy Teladoc Stock? – The Motley Fool.” Is Now a Good Time to Buy Teladoc Stock? | The Motley Fool. Accessed 18 June 2024.
- “Why Teladoc May Be One of the Best Growth Stocks to Buy in March – The Motley Fool.” Why Teladoc May Be One of the Best Growth Stocks to Buy in March | The Motley Fool. Accessed 18 June 2024.
- “Intuitive Surgical’s leap forward is a surgical revolution – Entreprenuer.” Intuitive Surgical’s leap forward is a surgical revolution | Entrepreneur. Accessed 18 June 2024.
- “1 New Reason to Buy Intuitive Surgical Stock and Hold Forever – The Motley Fool.” 1 New Reason to Buy Intuitive Surgical Stock and Hold Forever | The Motley Fool. Accessed 18 June 2024.
- “Reasons to Retain Intuitive Surgical in Your Portfolio – Business Insider.” Reasons to Retain Intuitive Surgical in Your Portfolio | Markets Insider (businessinsider.com). Accessed 18 June 2024.
- “Intuitive Surgical Poised for Growth: A Strong Buy Recommendation – Business Insider.” Intuitive Surgical Poised for Growth: A Strong Buy Recommendation | Markets Insider (businessinsider.com). Accessed 18 June 2024.
- “Abbott Labs tops Q1 expectations, raise low end of 2024 guidance range – The Associated Press.” Abbott Labs tops Q1 expectations, raises low end of 2024 guidance range | AP News. Accessed 18 June 2024.
- “Abbott Increases Quarterly Dividend for 52nd Consecutive Year – Nasdaq.” Abbott Increases Quarterly Dividend for 52nd Consecutive Year | Nasdaq. Accessed 18 June 2024.
- “Thermo Fisher Scientific Recognised by R&D 100 Awards for Innovations and Science and Technology – BioSpace.” Thermo Fisher Scientific Recognized by R&D 100 Awards for Innovations in Science and Technology | BioSpace. Accessed 18 June 2024.
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