The top healthcare stock picks we’ve identified are based on a list compiled by Credit Suisse
SmallCapPower | August 18, 2020: Credit Suisse recently screened the U.S. healthcare sector for cash-flow profit margins and chose their top picks based on operational profit margins, earnings growth, risk and price to book value. The three top healthcare stock picks presented today are the ones on their list with the lowest market caps.
*Returns are based on closing stock prices as of August 17, 2020
IDEXX Laboratories, Inc. (NASDAQ:IDXX) – $384.39
IDEXX Laboratories provides pet healthcare, serving practicing veterinarians throughout the world with a range of diagnostic and information technology-based products and services to improve staff efficiency and build more economically-successful practices. The Company also provides diagnostic tests and information for livestock and poultry, tests for the quality and safety of water and milk, and point-of-care and laboratory diagnostics for human medicine. IDEXX recently reported better-than-expected Q2 financial results, in which revenue rose 3% year over year to $638 million and earnings per share increased 20% to $1.72.
- One-Year Return: 38%
ResMed Inc. (NYSE:RMD) – $183.20
ResMed is a provider of digital health technologies and cloud-connected medical devices in order to keep people out of the hospital by helping treat patients with sleep apnea, COPD, and other chronic diseases. The Company recently reported better-than-expected Q4 financial results, with $770.3 million in revenue, up 9% year over year, and net income that more than doubled to $177.8 million. The strong growth was due to the COVID-19 pandemic driving increased demand for its ventilators. RMD stock has a current dividend yield of 0.9%.
- One-Year Return: 37%
Align Technology, Inc. (NASDAQ:ALGN) – $309.52
Align Technology designs and manufactures the Invisalign system, a clear teeth aligner that dental patients use as an alternative to braces as a way of straightening teeth. Its stock price is making new 2020 highs despite reporting a 41% decline in Q2 revenue along with a 128% drop in earnings due to COVID-19 related disruptions.
- One-Year Return: 75%
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