Healthcare is one of the largest and most complex areas within the stock market. It’s a multi-trillion dollar industry filled with opportunities for investors to pave their roads to financial freedom with long-term investing. You can find quality stocks in healthcare — companies that…
heal diseases, make medical devices, or simply provide the personal care products you buy at the store. Here are three blue-chip stocks you can buy in February and hold for the long term.
Surgery is one of the oldest practices in medicine, but thankfully its technology has improved over the centuries. Intuitive Surgical (NASDAQ:ISRG) is one of the leaders in the field today with its robotic surgery systems. The company’s flagship “Da Vinci” system has an installed base of 6,730 units, and the business has grown revenue at a 12% annual rate over the past decade.
It’s a good business because once a hospital purchases a Da Vinci system, it creates ongoing revenue in terms of maintenance and supplies. Not only is recurring revenue from services more reliable than a one-time equipment sale, but it carries higher margins that can make the overall business more profitable over time. System revenue was $1.7 billion in 2021, meaning that 70% of the company’s total $5.7 billion was in the form of recurring products and services.
There are tens of thousands of hospitals worldwide, so Intuitive Surgical has a very long growth runway ahead — and so do its investors.
Healthcare goes beyond the hospital. It starts in the home, and how people take care of themselves plays a critical role in their health.
Consumer staples giant Colgate-Palmolive (NYSE:CL) sells a variety of personal care and cleaning products. But it is probably best-known for its Colgate toothpaste brand, which commands a whopping 39% share of the global market. Colgate also sells 31% of the world’s toothbrushes! It says a lot about brand power when a company can control so much of a simple market. A toothbrush is a piece of plastic with bristles; it’s not exactly a proprietary product.
The company is kind of a slow grower, averaging less than 1% annual revenue growth over the past decade. However…
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