Kalkine Media lists major US healthcare stocks to watch in Q4

Highlights:

• Vertex posted a Q3 2022 revenue of US$ 2.33 billion.
• AbbVie distributed a quarterly dividend of US$ 1.48.
• UnitedHealth Group posted revenue of US$ 80.9 billion in Q3 2022.

The healthcare sector in the United States comprises some of the biggest companies in the world.

These stocks belong to companies that sell various products ranging from drugs to medical equipment to insurance and other ancillary items. The sector has been in the news recently as a slew of drugs got the approval or are on the verge of getting one from the FDA after the onset of the pandemic.

Amid all these developments, let us explore five US healthcare stocks and evaluate their performances in recent quarters:

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)

Vertex Pharmaceuticals is a US biotechnology company with a global footprint. It is involved in discovering and developing small-molecule drugs to intervene in serious ailments. The Massachusetts, Boston-based company has a market capitalization of US$ 79.5 billion.

Vertex Pharmaceuticals posted a product revenue of US$ 2.33 billion in Q3 2022, an increase of 18 per cent compared to US$ 1.98 billion in Q3 2021.

In its earnings report, Vertex Pharmaceuticals mentioned that its GAAP and Non-GAAP net income in Q3 2022 galloped by nine per cent and 14 per cent, respectively, compared to the year-ago quarter. It was propelled by strong revenue growth, partly offset by increased investment in its mid and late-stage clinical pipeline, said the company.

The company registered cash, cash equivalents, and marketable securities of US$ 9.8 billion. It was an increase of close to US$ 2.2 billion from December 31, 2021.

The VRTX stock grew over 39 per cent year-to-date (YTD). It increased more than five per cent over the past month.

AbbVie Inc. (NYSE:ABBV)

AbbVie is a US pharma company dealing in immunology and oncology. The company's top drug is Humira, which garners close to half of the company's current profits.

AbbVie announced a quarterly dividend of US$ 1.48, and the next payable date is February 15, 2023.

In its Q3 2022 results, AbbVie reported diluted EPS of US$ 2.21 on a GAAP basis, up 24.2 per cent year-over-year (YoY). Its adjusted diluted EPS was reported at US$ 3.66 for the reported quarter, an increase of 29.3 per cent YoY.

The company registered net revenues of US$ 14.812 billion in Q3 2022, up 3.3 per cent on a reported basis. The pharma company also reported net interest expense for the third quarter of fiscal 2022 at US$ 497 million.

The ABBV stock grew more than 9.02 per cent YTD while climbing 0.833 per cent over the past month.

UnitedHealth Group Incorporated (NYSE:UNH)

Among the largest private health insurance providers in the US, UnitedHealth Group provides medical benefits to more than 50 million members globally. It is a market leader in self-directed, employer-sponsored, and government-backed insurance plans.

UnitedHealth Group’s EPS is 20.42, with a P/E ratio of 27.1. The company announced a quarterly dividend of US$ 1.65, which is next slated to be paid on December 13, 2022.

The company said it attained diversified growth across Optum and UnitedHealthcare in Q3 2022.

In the third quarter of fiscal 2022, UnitedHealth’s revenues were reported at US$ 80.9 billion, up 12 per cent YoY. The company’s earnings from operations in the third quarter of the current fiscal were US$ 7.5 billion.

It said that during the three months that ended September 30, the cash flows from operations came to US$ 18.5 billion, while the adjusted cash flows from operations were reported at US$ 8.8 billion. The company's net earnings were reported at US$ 5.55 per share and the adjusted earnings at US$ 5.79 per share.

QuidelOrtho Corp Com (NASDAQ:QDEL)

QuidelOrtho Corp develops, manufactures, and sells rapid diagnostic testing solutions. The company’s product range includes point-of-care tests for infectious diseases, cardiac health, autoimmune biomarkers, and other Covid-testing products.

QuidelOrtho Corp said its revenue in the third quarter of fiscal 2022 rose 54 per cent to US$ 783.8 million compared to US$ 509.8 million in the year-ago quarter. The company said that revenue growth resulted from its point-of-care and donor-screening products.

The San Diego, California-based company’s adjusted EBITDA for Q3 2022 was US$ 226.8 million, versus US$ 435.2 million in the same comparative period in 2021.

The QDEL stock plummeted over 35 per cent on a YTD basis. However, it has gained over 22 per cent QTD.

Bottom line:

The US stock market has been through upheavals since the beginning of 2022. Several sectors suffered losses in the first half of the year. The fastest inflation in decades and the Federal Reserve’s equally aggressive policies have kept investors on edge throughout the year. However, a long-term strategy might help during market volatility. Investors who go for diversification of their portfolios tend to remain safe and manage to thwart market volatility to a great extent. Hence, do thorough research before you pick your stocks to protect your money.