Bausch Health Companies (BHC), Regeneron Pharmaceuticals (REGN), Orthofix Medical (OFIX), and Alkermes (ALKS) are 4 healthcare stocks with strong value and growth qualities. These are a good fit for the current market, as the value component will provide downside protection in the event that the market weakens further.
The healthcare industry is often overlooked in favor of tech and other faster-growing industries. However, healthcare stocks do have growth potential albeit at a slower pace especially due to the aging populating and rising costs.
Some healthcare stocks are more value-oriented while others qualify as growth stocks. A handful of stocks have both growth and value characteristics which makes them a great pick for the current market.
Let’s take a quick look at four healthcare stocks that have A POWR Ratings component grades in the Growth and Value components: Bausch Health Companies (BHC), Regeneron Pharmaceuticals (REGN), Orthofix Medical (OFIX), and Alkermes (ALKS).
Bausch Health Companies (BHC)
BHC makes and markets all sorts of pharmaceuticals and over-the-counter products including medical devices, intraocular lenses, contact lenses, and ophthalmic surgical equipment. BHC is currently priced at $28.44. The stock’s 52-week high is $34.80. BHC’s 52-week low is $14.86.
BHC has a forward P/E ratio of 6.83. This is a low forward P/E ratio and a testament to the fact that BHC and much of the overarching healthcare sector are undervalued. BHC has a beta of 1.70 meaning it probably won’t fluctuate much should the market become especially volatile.
BHC has a B POWR Rating grade. The stock has As in the Value and Growth components of the POWR Ratings. BHC has Cs in the Sentiment and Stability components of the POWR Ratings. Click here to find out how BHC fares in the rest of the POWR Ratings components such as Quality and Momentum.
Of the 224 publicly traded companies in the Medical – Pharmaceuticals category, BHC is ranked 26th. You can learn more about this sector by clicking here.
Regeneron Pharmaceuticals (REGN)
REGN is a biotech company that brings treatments for serious medical conditions to the market. REGN has a forward P/E ratio of 11.83. This is a reasonable ratio that indicates REGN might be a bit underpriced at $572 and change. The stock’s 52-week high is $664.64. REGN’s 52-week low is $441.
REGN has a B POWR Rating. The stock has A grades in the Value and Growth components, a B Quality component grade, and a C Stability grade. Investors who would like to find out more about how REGN fares in the rest of the POWR Ratings components such as Momentum and Stability can do so by clicking here.
REGN has an average analyst price target of $632.91. If the stock hits this price, it will have popped by nearly 9%. The highest analyst price target for the stock is $814. The lowest price target for REGN is $460. A total of 26 analysts have issued recommendations for REGN. 10 analysts view the stock as a Buy, eight view it as a Strong Buy, and eight consider it a Hold.
Orthofix Medical (OFIX)
OFIX makes medical devices with a focus on those designed for the spine. Based in Lewisville, Texas, OFIX was previously known as Orthofix International.
OFIX has an A POWR Rating grade. The stock has As in the Value and Growth components of the POWR Ratings. OFIX also has B grades in the Quality and Sentiment components. You can find out how OFIX performs in the Stability and Momentum components of the POWR Ratings by clicking here.
OFIX is ranked first of 184 stocks in the Medical – Devices & Equipment space. Investors who are interested in stocks in this category can learn more about them by clicking here.
OFIX has a forward P/E ratio of 71. This is a high ratio that indicates the stock is overvalued. It is a bit reassuring that OFIX has a 1.14 beta. This low number means the stock is unlikely to significantly increase or decrease in price if the market spikes or suffers a meaningful decline.
Headquartered in Dublin, Ireland, ALKS is a worldwide biopharma company. ALKS has a product portfolio along with a primed pipeline with drug candidates to treat central nervous system disorders.
ALKS has an A POWR Rating grade with As in the individual Value and Growth components. The stock has a B Quality component grade and a C Sentiment component grade. Click here to find out how ALKS fares in the Momentum and Stability components.
Of the 224 stocks in the Medical – Pharmaceutical space, ALKS is ranked 4th. You can find out more about the stocks in this sector by clicking here.
ALKS has a forward P/E ratio of 51.49. This figure indicates the stock is overvalued. However, ALKS is trading within 50 cents of its 52-week high of $25.74. The stock’s 52-week low is $15.35. ALKS has a beta of 0.98 so it probably won’t prove volatile if the market swings.
REGN shares were trading at $574.72 per share on Thursday afternoon, down $11.18 (-1.91%). Year-to-date, REGN has gained 18.96%, versus a 16.00% rise in the benchmark S&P 500 index during the same period.
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.