Buy Alert: 3 Healthcare Stocks Sitting in the Sweet Spot

Core Viewpoint - Diversifying investment portfolios by including healthcare stocks can reduce risk, especially as many investors already hold positions in AI and technology companies [1] Group 1: Johnson & Johnson (JNJ) - Johnson & Johnson is a leading global healthcare innovation company with a focus on pharmaceutical technology and MedTech [2] - The company reported Q4 FY2023 earnings that exceeded expectations and reaffirmed FY24 guidance, with analysts projecting a one-year price target between an average of $174.76 and a high of $215 [2] - JNJ's bladder cancer drug Balversa received full FDA authorization, enhancing its revenue growth potential [2] - The company recently announced a $2 billion acquisition of Ambrx Biopharm to mitigate product dependency risks [2] - JNJ's P/E valuation is slightly undervalued at 15.29x compared to the sector median of 18.68x, indicating a favorable investment opportunity [3] Group 2: UnitedHealth Group (UNH) - UnitedHealth Group is a well-established healthcare services company, offering medical insurance plans, clinics, hospitals, and wellness programs [5] - The stock has increased over 3% in the past year, with analysts projecting a one-year price target of $552.22, significantly above the current share price of around $503 [5] - The company reported revenue of $371.6 billion, reflecting over 15% annual growth, with expected earnings growth of around 7% in the coming years [5] - UnitedHealth's forward P/E ratio of 19.40x is over 33% lower than the sector median, presenting a buying opportunity for investors [5] Group 3: Acumen Pharmaceuticals (ABOS) - Acumen Pharmaceuticals focuses on developing therapies for Alzheimer's disease, with a stock price down over 35% in the past year, creating a potential buying opportunity [6] - Analysts have set an average one-year price target of $14, significantly higher than the current price of around $3.42 [6] - The company is developing a drug called ACU193, which is in Phase 1 trials and has received a $3.6 million grant for further research, indicating its innovative potential [6] - Acumen's Price/Book ratio is 0.67x, over 70% below the sector median of 2.25x, highlighting its relative undervaluation [7]