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It’s tough out there for traders looking for their next move.
The S&P is currently down over 18% on the year - even after a 6% surge last week - and at least some experts are calling for more downside in the weeks and months ahead…
So you’ll want to look for stocks that can outperform the broader indices during a bear market.
Right now, healthcare stocks are faring much better than the rest of the market - and there’s a good reason…
According to Verified Market Research, the global healthcare market is set to reach $665 billion by 2028, with a compound annual growth rate (CAGR) of 8.56%.
But that’s only part of the story…
Healthcare spending in the U.S. alone is expected to hit $4.3 trillion in 2023 and is projected to reach $6.8 trillion by 2030.
That’s the highest rate in the world - and just over 18% of U.S. GDP.
That last number is particularly important, and here’s why: when the global economy enters a recession (as many analysts predict) and GDP contracts, that percentage is only going to go up.
As spending declines in other areas (particularly in the consumer discretionary sector), healthcare spending is set to grow at a rate of 5.1% over the next 8 years.
The bottom line: No matter what happens in the markets, healthcare stocks will continue to rise with increased spending in the sector.
Let’s take a look at 3 healthcare stocks beating the markets.
McKesson Corp. (MCK)
The world’s largest healthcare company, McKesson Corp. (MCK), is an obvious choice here…
McKesson provides healthcare supply chain management, retail pharmacy, community oncology and specialty care, and healthcare information operating in four business segments: U.S. Pharmaceutical, International, Medical-Surgical Solutions, and Prescription Technology Solutions.
MCK stock has been a great stock so far in 2022 - up as much as 34% this year while the S&P 500 has declined as much as 23% on the year.
Which means MCK has outperformed the broader markets by as much as 57 percentage points in 2022.
Merck & Co. (MRK)
Merck & Co. (MRK) is one of the world’s leading pharmaceutical companies - on the strength of some truly blockbuster drugs.
Keytruda - which can be used to treat a variety of lethal cancers including advanced non-small cell lung cancer, advanced cervical cancer, and melanoma - generated over $17 billion in revenue alone in 2021, up from $14 billion in 2020 and $11 billion in 2019.
That number is expected to continue to climb as the company expands Keytruda’s on-label treatments.
These kinds of cancer-fighting drugs remain a necessity no matter what markets do, so MRK should continue to see increased revenues from all of its products moving forward.
In 2022, the stock has been a safe haven for investors, rising as much as 23% on the year. A recent pullback dropped the price somewhat, but MRK is still up 14% YTD.
Bristol-Myers Squibb Co. (BMY)
Bristol-Myers Squibb Co. (BMY) owns a massive portfolio of drugs to treat everything from cancer to multiple sclerosis to Covid-19.
The stock has gone on a tear in 2022 as the broader markets have collapsed…
Back in January, when markets opened the new year, BMY was trading at just $62.07…
Today, it’s trading at over $76, an increase of 23% on the year - that’s a 46-point advantage over the S&P 500 year to date.
MCK, MRK, and BMY are all leaders in the pharmaceutical industry, and should continue to outperform the markets because they provide an essential product - drugs that fight the deadliest diseases we face.
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CEO and Founder
Since beginning his journey to create Stock Navigators in 2018, Tim has continued to enhance his knowledge in the financial markets in futures, stocks, and options to name a few. He has brought a passion for education and the financial markets to drive the continued efforts of Stock Navigators to help individuals take advantage of the endless opportunities in the markets. He hopes to continue to build Stock Navigators into a company that provides financial freedom to those who have a passion for hard work.
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