2 top healthcare stocks to watch in August: MRNA and MCK

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2 top healthcare stocks to watch in August: MRNA and MCK

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 2 top healthcare stocks to watch in August: MRNA and MCK
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Highlights:

  • Moderna Inc. (Nasdaq: MRNA) reported total revenue of US$6.06 billion in Q1 FY2022.
  • McKesson Corporation (NYSE: MCK) stock jumped by around 36 per cent in 2022.
  • MCK raised its quarterly dividend by 15 per cent to 0.54 USD recently. 

Amid volatile market conditions, healthcare stocks can be a viable option to balance out portfolios. While many mega-cap stocks are down, healthcare stocks like Moderna Inc. (Nasdaq: MRNA) and McKesson Corporation (NYSE: MCK) can bring some relief to investors as the sector tends to perform well even during market turmoil. 

Here, we explore two healthcare stocks, MRNA and MCK, and their performances.

Moderna Inc. (Nasdaq: MRNA)

The US pharmaceutical and biotechnology company headquartered in Cambridge, Massachusetts, has often been in the headlines since the onset of the COVID-19 pandemic, as its mRNA vaccines are related to producing an immune response.

Moderna has a market of US$62.85 billion. For the first quarter of the financial year 2022, it reported total revenue of US$6.06 billion compared to US$1.93 billion in the year-ago quarter.

Its net income jumped 200 per cent to US$3.56 billion in the first quarter of 2022 compared to US$1.22 billion in the same quarter in 2021.

MRNA stock price fell over 30 per cent year-to-date (YTD). Its Relative Strength Index (RSI), as of August 2, was 50.09, as per Refinitiv data. Moderna's earnings per share (EPS) is US$34.03, and its one-year forward price to earnings (Forward P/E 1 Yr.) is 6.10.

2 top healthcare stocks to watch in August: MRNA and MCK

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McKesson Corporation (NYSE: MCK)

McKesson is an Irving, Texas-based company that distributes pharmaceuticals and provides health information technology, medical supplies, and care management accessories and tools.

MCK stock jumped by over 36 per cent this year. It surged 3.06 per cent since the last month. The medical scrip, on August 2, had a Relative Strength Index (RSI) of 64.53, as per Refinitiv data. 

McKesson recently raised its quarterly dividend by 15 per cent to 0.54 USD, which is set to be payable by October 3, 2022.

McKesson is slated to announce its first quarter fiscal 2023 earnings on August 3, 2022.

McKesson's total revenues for the fourth quarter of fiscal 2022 were US$66.1 billion compared to US$59.1 billion in the corresponding quarter a year ago. Its Q4 FY2022, adjusted earnings per diluted share came to US$5.83 against US$5.05 in the same quarter the previous year. 

Bottom line

Many healthcare companies have received FDA approvals for developing drugs to treat COVID-19, which caught investors’ attention. With so much happening in the healthcare sector, the stocks of these companies are likely to grow in the coming months. 

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