3 Large-Cap Healthcare Stocks with More Than 40% Upside, According to Wall Street

Like most industries, healthcare has started leveraging automation and innovative technologies to combat staffing shortages and other pandemic-induced operational challenges. Technology is expected to play a big role in remote patient management (RPM) and…

in improving the overall patient experience this year.

Up to 80% of healthcare providers in the U.S. are planning to invest in technologies that include digital health, artificial intelligence (AI), and machine learning, as well as tools to support clinical staff and caregivers over the next five years. The global digital health market is expected to reach $881 billion by 2027, achieving a 20.1% CAGR during 2022 – 2027. In addition, U.S. healthcare spending is projected to reach $6.20 trillion by 2028 and account for almost 20% of the GDP.

Given this backdrop, Wall Street analysts expect large-cap healthcare stocks, Horizon Therapeutics Public Limited Company (HZNP – Get Rating), Catalent, Inc. (CTLT – Get Rating), and Exact Sciences Corporation (EXAS – Get Rating), to rally by more than 40% in price in the near term.


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Horizon Therapeutics Public Limited Company (HZNP – Get Rating)

With a market capitalization of $22.16 billion, HZNP in Dublin, Ireland, is a biotechnology company that focuses on discovering, developing, and commercializing medicines that address critical needs for people impacted by rare, autoimmune, and severe inflammatory diseases. The company operates in two segments–Orphan and Inflammation.

Last month, HZNP announced that it had signed a long-term, full-building lease with Alexandria Real Estate Equities, Inc. to be the first tenant at the Alexandria Center® at the Traville Gateway campus in Rockville, Md. The new facility should expand the company’s presence in the region. Maryland has one of the fastest-growing biotechnology communities in the country and thus should be beneficial for the company.

For the third quarter, ended September 30, HZNP’s net sales increased 62.9% year-over-year to $1.04 billion. Its non-GAAP net income stood at $413.80 million, up 5.5% from its year-ago value, while its EPS increased marginally year-over-year to $1.75. The company’s adjusted EBITDA grew 54.3% from the prior-year quarter to $509 million.

The $995.87 million consensus revenue estimate for its fiscal fourth quarter (ended December 2021) indicates a 33.6% increase year-over-year. The Street expects the company’s EPS to grow 4.7% from the same period in the prior year to $1.34. Furthermore, it surpassed the consensus EPS estimates in three of the trailing four quarters.

HZNP shares have gained 12.4% in price over the past year and 7.2% over the past month to close yesterday’s trading session at $97.70.

The six Wall Street analysts who rated HZNP have rated it Buy. The 12-month median price target of $143.83 indicates a 47.2% potential upside. The price targets range from a low of $133.00 to a high of $168.00.

Catalent, Inc. (CTLT – Get Rating)

CTLT in Somerset, N.J. develops and manufactures solutions for drugs, protein-based biologics, cell and gene therapies, and consumer health products worldwide. It operates through four segments: Biologics; Softgel and Oral Technologies; Oral and Specialty Delivery; and Clinical Supply Services. CTLT has a market capitalization of $17.90 billion.

On February 15, CTLT announced plans to expand its Waigaoqiao Free Trade Zone (FTZ) facility in Shanghai, China, to…


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