Top Medical Companies Worth Buying for Long-Term Investment
After the S&P 500 record's 10% year-to-date revision, there's no shortage of attractively valued stocks for long-term investors.
One area that is stacked with inexpensive stocks is healthcare. This sector currently has a forward price-to-earnings (P/E) ratio of 15.1, well below the average forward P/E ratio of 18.6 for the S&P 500 index.
1. CVS Health
CVS Health (CVS) is the second-largest health insurer in the world, just behind UnitedHealth Group. With the growing global healthcare demand, CVS is in a strong position to capitalize on the market's expansion through its Aetna business.
Analysts expect CVS to grow its earnings by 6% annually over the next five years. Investors can also benefit from CVS's 2.1% dividend yield, which is currently available at a forward P/E ratio of just 11.7, making CVS an attractive buy.
2. Amgen
Amgen (AMGN) is one of the world's top 10 pharmaceutical companies with a strong portfolio of drugs, including Prolia, Xgeva, and Otezla. Amgen's future growth looks promising, with 40 compounds currently in clinical trials.
Amgen's earnings are projected to grow by 7% annually over the next five years, and it offers a 3.3% dividend yield. With a forward P/E of 12.2, Amgen offers a compelling mix of growth and income potential.
3. Sanofi
Sanofi (SNY), based in France, is a major player in the pharmaceutical industry with a market cap of $122 billion. Sanofi's blockbuster drugs, such as Dupixent (co-owned with Regeneron), are driving growth, along with a robust pipeline of
