Promising Health Stocks: A Look at Three Top Picks

Investors looking for lucrative opportunities in the healthcare sector have reason to rejoice. The healthcare market, especially in the USA, remains a continuously evolving and growing field – perfect for long-term investments. Whether you aim for dividend growth or passive income, there are stocks that meet your requirements. After thorough analysis, we present three promising stocks available for under $1,000 that can be held long-term. A standout example is Hims & Hers Health. As a pioneer in the expanding telemedicine market, the company has embarked on an impressive growth trajectory. Since the second quarter of 2019, the number of subscribers has risen from 192,000 to over one million. Despite recent turbulence due to concerns over the sale of GLP-1 products, Hims & Hers remains strong. The stock is currently trading at 68 times the estimated earnings for 2024, which seems quite reasonable given the high growth rates. With a market capitalization of $3.2 billion and annual revenue growth of over 50%, Hims & Hers could become a genuine success story. An established heavyweight in the industry is UnitedHealth Group. With annual revenues nearing $400 billion, the company is among the largest worldwide. Beyond its well-known health insurance services, the Optum division offers a wide range of services from medical care to data analytics. Historically, UnitedHealth has impressed both through price increases and dividends. An investment of $10,000 at its IPO in 1984 would be worth $52.1 million today. Management has consistently increased the dividend for 15 years, underscoring its commitment to sustainable growth. Not to be overlooked is AbbVie, known for its profitable pharmaceuticals. The company gained fame with Humira, one of the best-selling drugs globally, and now also markets blockbusters like Botox and Skyrizi. AbbVie has a solid dividend history and currently offers a yield of 3.2%. Market concerns regarding Humira's patent expiration have been successfully addressed through strategic acquisitions and the development of new revenue sources. Analysts forecast mid to high single-digit revenue growth in the coming years, which supports continued strong dividend payouts. In summary, these three stocks offer exciting long-term growth prospects and could be a worthwhile addition to any portfolio.