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3 No-Brainer Healthcare Stocks to Buy With $200 Right Now
ABTAbbott(ABT) The Motley Fool·2025-02-10 09:20

Core Viewpoint - Healthcare stocks present diverse investment opportunities, catering to high-growth, cautious, and recovery-focused investors [1] Group 1: Pfizer - Pfizer is positioned as a recovery story, with annual revenue reaching a record 100billionduringthepandemic,drivenbyCOVID19products,buthasfacedrevenuedeclinesrecentlyduetolossofexclusivityonolderproducts[3][4]Thecompanyhasimplementedcostcuttingmeasures,acquiredoncologycompanySeagen,andinvestedinitspipeline,resultingindoubledigitquarterlyrevenuegrowthandaprojected100 billion during the pandemic, driven by COVID-19 products, but has faced revenue declines recently due to loss of exclusivity on older products [3][4] - The company has implemented cost-cutting measures, acquired oncology company Seagen, and invested in its pipeline, resulting in double-digit quarterly revenue growth and a projected 4.5 billion in cost savings by year-end [4][5] - Pfizer has secured over a dozen product approvals and significant phase 3 trial readouts in the past year, indicating potential revenue growth, and is currently trading at 8 times forward earnings estimates, making it an attractive addition to healthcare portfolios [5] Group 2: Abbott Laboratories - Abbott Laboratories offers a diversified business model across diagnostics, medical devices, nutrition, and established pharmaceuticals, providing stability and mitigating risks from sector-specific downturns [6][7] - The company reported a 10% increase in fourth-quarter sales to 11billion,excludingtheimpactofcoronavirustesting,andhasastronghistoryofdividendgrowth,havingincreaseditsannualpaymentforover50consecutiveyears[7][8]Abbottgeneratesover11 billion, excluding the impact of coronavirus testing, and has a strong history of dividend growth, having increased its annual payment for over 50 consecutive years [7][8] - Abbott generates over 6 billion in free cash flow, reinforcing its commitment to rewarding shareholders and making it a solid investment for both stock performance and passive income [8] Group 3: Viking Therapeutics - Viking Therapeutics is focused on developing treatments for metabolic and endocrine disorders, with significant attention on its weight-loss drug VK2735, which is in various trial phases [9][10] - The drug is a dual GIP/GLP-1 receptor agonist, similar to top-selling weight-loss drugs from competitors, indicating strong market interest and potential demand [10] - Positive trial results and potential commercialization could serve as catalysts for Viking's stock performance, making it an opportune time for investment [11]