5 Best US Healthcare Stocks for 2024

The US healthcare sector rose 26% last year, with further growth expected in 2024📈

BlackRock predicts a bullish future, projecting healthcare to lead in earnings and closely trail consumer discretionary and tech in sales growth.

Here are our 5 best healthcare stocks for 2024👇

5 Best US Healthcare Stocks for 2024

Overview

Investing in healthcare stocks presents a good option for investors aiming to tap into a robust and adaptable sector of the economy. Several favourable trends contribute to the allure of healthcare stocks, making them an appealing choice for investors seeking sustainable growth opportunities.

An essential driver of the healthcare sector's growth is the demographic shift toward an aging population, primarily fueled by the maturing baby boomer generation. Enhanced healthcare services and technological advancements have extended life expectancy, leading to heightened demand for healthcare services and products.

Additionally, the rising incidence of chronic diseases among older demographics, combined with global health challenges such as obesity and diabetes, underscores the continual need for innovative healthcare solutions. 

Among the many options for healthcare stocks, pharmaceutical companies emerge as pivotal players in the industry landscape. These firms are engaged in the research, development, and production of medications to address a spectrum of medical conditions. Substantial investments in research and development are common for pharmaceutical companies, with a significant portion of their revenue designated for this purpose.

The pharmaceutical sector's dynamics are shaped significantly by clinical-trial outcomes, exerting substantial influence on stock valuations. Positive results from clinical trials, such as superior efficacy or expedited regulatory approvals, can precipitate notable stock appreciation. Conversely, adverse trial outcomes can lead to downward stock pressure.

In summary, the healthcare sector offers promising investment opportunities fueled by demographic changes and technological progress. With a range of companies driving innovation, let's now explore five leading US healthcare stocks for 2024, highlighting their potential for growth and value.

Eli Lilly and Company (LLY)

$717B Market cap

Eli Lilly, the world's largest healthcare company, focuses on drug manufacturing for various medical fields. Notable products include Verzenio, Mounjaro, Zepbound, and Jardiance. Shares surged 125% in the past year, driven by strong sales of weight-loss and diabetes treatments. Sales are projected to reach $40.4 billion to $41.6 billion in 2024, with significant growth expected for key drugs like Mounjaro and Zepbound. Emerging drugs targeting conditions such as Alzheimer's disease show promise for future growth.

Stryker Corporation (SYK)

$132B Market cap

Stryker Corporation is a top-tier medical technology company specializing in surgical, neurotechnology, orthopedic, and spine products. With global reach, they provide innovative solutions to healthcare facilities and professionals. Their recent financials show significant growth, with reported net sales up 11.8% in Q4 of 2023 and a 33% increase in share value over the past year.

Vertex Pharmaceuticals Incorporated (VRTX)

$109B Market cap

Vertex Pharmaceuticals is a global biotech powerhouse dedicated to developing groundbreaking medicines for serious diseases like cystic fibrosis, sickle cell disease, and beta thalassemia. Their portfolio features acclaimed therapies such as Kalydeco, Orkambi, Symdeko, and Trikafta/Kaftrio, all of which have established global standards in cystic fibrosis treatment. In 2023, Vertex experienced strong growth, with revenue reaching $9.87 billion (a 10.51% increase) and earnings hitting $3.62 billion, while their share price increased by 43% over the past year.

Boston Scientific Corporation (BSX)

$97B Market cap

Boston Scientific Corporation is a leading global developer, manufacturer, and marketer of medical devices, specializing in specialties like cardiology, urology, and gastrointestinal health. Their innovative products include implantable devices, remote patient management systems, and interventional cardiology solutions. In 2023, the company's revenue reached $14.24 billion, with earnings up by 144.55% and share prices increasing by 43%.

Medpace Holdings, Inc. (MEDP)

$12B Market cap

Medpace Holdings, Inc. is a global leader in clinical research services for pharmaceuticals and medical devices. They offer comprehensive support for clinical trials worldwide, from Phase I to Phase IV, across various medical fields. Services include strategic planning, laboratory management, regulatory compliance, clinical monitoring, data analysis, and post-market support. With over 30 years of experience, Medpace employs over 5,400 professionals across 40 countries. In 2023, the company reported $1.89 billion in revenue, a 29.17% increase from the previous year, with earnings of $282.81 million. Share prices increased by 94% in the past year