CNC to MOH: 5 US healthcare stocks to explore during a market downturn

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CNC to MOH: 5 US healthcare stocks to explore during a market downturn

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 CNC to MOH: 5 US healthcare stocks to explore during a market downturn
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Highlights:

  • Centene Corporation’s (NYSE: CNC) Q2 2022 revenue was US$ 35,936 million.
  • Vertex Pharmaceuticals Inc. has a market cap of US$ 72.3 billion.
  • Merck & Company, Inc. pays a quarterly dividend of US$ 0.69. 

As the US market has remained volatile since the start of this year, top stocks had seen a steep fall until the recent quarterly earnings offset some of the losses incurred in the first half. Investors are scurrying for sectors and stocks that can wade through the current market volatility.

In such a scenario, exploring healthcare stocks like Centene Corporation (NYSE: CNC), Seagen Inc. (NASDAQ: SGEN), and Molina Healthcare Inc (NYSE: MOH) could be considered.

Here, we discuss five US healthcare stocks picked by Kalkine Media® and their performances:   

Centene Corporation (NYSE: CNC)

Centene Corporation works as an arbitrator, juggling between government-aided and privately insured health care programs.

The US$ 51.3 billion company Centene occupied 24th on the Fortune 500 list in 2021, and its price-to-earnings (P/E) ratio is 28.49.

While CNC stock climbed over eight per cent year-to-date, shares of Centene Corporation gained over 43 per cent year-over-year (YoY).

It touched its 52-week highest price of US$ 98.53 on August 15, 2022, while it tanked to its 52-week lowest price of US$ 59.67 on September 21, 2021.

Centene Corporation reported a 16 per cent growth in its revenue in the second quarter of fiscal 2022, compared to the year-ago period. Its Q2 2022 total revenue was US$ 35,936 million, while it was US$ 31,025 million in Q2 2021.

Centene repurchased 4.2 million shares worth US$ 344 million via the stock repurchase program in the second quarter of 2022. It also bought back additional shares worth US$ 106 million in July.

Vertex Pharmaceuticals Inc. (NASDAQ: VRTX)

Vertex Pharmaceuticals claims to be the first to use an explicit rational drug design technique rather than combinatorial chemistry.

The company has a market cap of US$ 72.3 billion, and its EPS (earnings per share) was US$ 12.37.

VRTX stock closed at US$ 281.76, up 0.14 per cent on August 31, 2022, with a share volume of 1,442,235.

On a year-to-date basis, VRTX grew 26.61 per cent. As per Refinitiv, VRTX stock had a Relative Strength Index (RSI) value of 43.84 as of September 1, 2022.

Vertex Pharmaceuticals’ Q2 2022 product revenues of US$ 2.2 billion was a 22 per cent increase compared to Q2 2021.

In its second quarter 2022 results, Vertex Pharmaceuticals also raised the full-year 2022 product revenue guidance. It now anticipates it to be between US$8.6 to US$8.8 billion.

Vertex reported a Q2 2022 GAAP net income of US$ 810 million, relative to US$ 67 million in the corresponding quarter of 2021. Its Q2 2022 non-GAAP revenue was US$ 930 million versus US$ 43 million in Q2 2021.

Seagen Inc. (NASDAQ: SGEN)

Seagen Inc. is a US biotech enterprise engaged in developing and marketing innovative, empowered monoclonal antibody-based therapies for cancer treatment. Seagen also provides its antibody-drug conjugate technology to other leading pharma and biotech companies.

Seagen has a market valuation of US$ 28.5 billion. Although the SGEN stock tumbled over two per cent on a YoY basis, it surged 20.27 per cent in the past six months.

Its last closing price was US$ 154.29 on August 31, 2022, with a share volume of 1,158,401.

SGEN peaked at US$ 192.78 in its 52-week performance on November 8, 2021. It fell to its 52-week lowest price of US$ 105.43 on May 9, 2022. 

For the second quarter of fiscal 2022, Seagen registered record net product sales. The company posted total revenues of US$ 498 million in Q2 2022 versus US$ 389 million in Q2 2021.

Its net product sales for the reported quarter were US$ 432 million compared to US$ 348 million in Q2 2021. 

Seagen Inc. (NASDAQ: SGEN) revenue and net sales (US$)

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Merck & Company, Inc. (NYSE: MRK)

Merck & Co., Inc. is a US-based multinational pharmaceutical company that manufactures drugs to treat many conditions in many therapeutic areas. Its immuno-oncology platform is a major contributor to the company's overall sales.

The US$ 216.3 billion company, Merck announced a quarterly dividend of US$ 0.69; the next payable date is October 7, 2022.

The share price of Merck increased by over 11 per cent YTD. It gained over 12 per cent on a YoY basis.

The last closing price of the MRK stock was US$ 85.10 on August 31, 2022. It is 20 per cent higher than its 52-week lowest price of US$ 70.89 on September 17, 2021. Its 52-week highest price was US$ 95.72 on June 27, 2022.

In its second quarter 2022 financial results, Merck posted sales of US$ 14,593 million compared to US$ 11,402 million in the corresponding quarter in 2021. It is over 27 per cent growth from last year.

Molina Healthcare Inc (NYSE: MOH)

The Long Beach, California-based company has a market value of US$ 19.7 billion and a P/E ratio of 26.27. MOH stock saw a surge of 6.5 per cent this year and 3.82 per cent over the past month.

Molina Healthcare reported an 18 per cent increase in its total revenue in Q2 2022, compared to the year-ago quarter. It registered total revenue of US$ 8,054 million in Q2 2022, while it was US$ 6,800 million in Q2 2021.

MOH stock had an RSI value of 61.13 as per Refinitiv as of September 1, 2021. It indicates that the stock has a stable market condition.

Molina's Q2 2022 GAAP net income was US$ 4.25 per diluted share versus US$ 3.16 per diluted share in Q2 2021.

Bottom line:

However good the performances of certain stocks may be, market volatility can change the circumstance anytime. Hence, it is not easy to pick stocks during a bearish and volatile phase in the market. Investors could consider adopting a long-term strategy to prevent making losses when the market is down.

As the US market has remained volatile since the start of this year, top stocks had seen a steep fall until the recent quarterly earnings offset some of the losses incurred in the first half. Investors are scurrying for sectors and stocks that can wade through the current market volatility.

In such a scenario, exploring healthcare stocks like Centene Corporation (NYSE: CNC), Seagen Inc. (NASDAQ: SGEN), and Molina Healthcare Inc (NYSE: MOH) could be considered.

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