The healthcare stocks have been impacted significantly by Covid-19. Things are about to alter again, with the end of the pandemic. As a result, a growing number of UK investors are considering adding healthcare stocks to their portfolios.
In this article, we’ll look at the Best Healthcare Stocks to Buy in the UK in 2022. We’ll also go over the best UK brokers for minimal and quick healthcare stock purchases.
What are the various types of Healthcare Stocks?
Healthcare, like every other stock market sector, is composed of a variety of industries, each with its unique set of characteristics. In the case of the healthcare sector, four of the most important categories of stocks are:
Drug stocks: Pharmaceutical businesses produce and manufacture drugs for the treatment and prevention of diseases and infections.
Medical devices stocks: Corporations that create and manufacture medical tests, instruments, and equipment, many of which are utilized in medical research and development procedures, notably by pharmaceutical companies, are included in this category.
Health insurance stocks: This category consists of firms that provide health insurance plans to help employers and individual consumers cover the expense of healthcare. Pharmacy benefit managers are also included (PBMs).
Medical services provider stocks: Hospital operators, home health firms, controlled care facility operators, and other healthcare service providers are included in this category.
Top 10 UK Healthcare Stocks to Buy in 2022
The healthcare industry is large, with a significant number of companies to pick from and numerous chances for long and short positions. Here’s a quick list of some of the best UK healthcare companies to invest in, all of which have a high return on investment:
- AstraZeneca plc (LON: AZN)
- Smith & Nephew plc (LON: SN)
- Johnson & Johnson (NYSE: JNJ)
- UnitedHealth Group Inc (NYSE: UNH)
- Pfizer Inc. (NYSE: PFE)
- Zimmer Biomet Holdings Inc (NYSE: ZBH)
- ConvaTec Group PLC (LON: CTEC)
- Dechra Pharmaceuticals PLC (LON: DPH)
- Bio-Rad Laboratories Inc. (NYSE:BIO)
- Novo Nordisk (NYSE: NVO)
Top 10 UK Healthcare Stocks Reviewed
1. AstraZeneca plc (LON: AZN)
AstraZeneca plc is a British pharmaceutical company headquartered in Cambridge. This company was involved in the creation of the Oxford-AstraZeneca Corona vaccine.
AstraZeneca had an extraordinary year in terms of pipeline progress and commercial execution across its entire product range. Strong development across its various business areas in many locations drove a 38 percent increase in total revenues and a 37 percent increase in earnings per share at a constant currency rate in 2021.
In 2022, AstraZeneca estimates a reduction in total revenues from COVID-19 medications, with a drop in COVID-19 vaccine sales somewhat compensated by an increase in Evusheld sales.
AstraZeneca’s stock has been rising for a long time, providing stockholders a large profit. AstraZeneca stocks had a trading volume of £2.96 million at the time of composing this article. Its 52-week stock price high is 9523 GBX, implying only a 0.8 percent upside objective at the current price of 9440 GBX.
AstraZeneca’s price-to-earnings (PE) ratio is a whopping 1567.61, and the company pays a 2.23 percent dividend.
2. Smith & Nephew plc (LON: SN)
Smith & Nephew plc, located in Watford, England, is a British multinational medical equipment manufacturing firm. It is a leading manufacturer of sophisticated wound management, arthroscopic, trauma and medical therapy, and orthopedic reconstructive products on a global scale. Its goods are sold in more than a hundred countries.
Smith & Nephew PLC recently revealed a more than quadrupled pretax profit for 2021, with revenue exceeding pre-Covid 2019 values in the Sports Medicine & ENT and Advanced Wound Management divisions.
The medical-technology firm from the United Kingdom predicted that growth would be higher in the second half of the year than in the first and that global supply-chain challenges would persist.
Pretax profit was $586 million for the year ended December 31, up from $246 million in 2020, while revenue increased to $5.21 billion from $4.56 billion. Underlying sales growth is estimated to range from 4.0 percent to 5.0 percent in 2022.
Smith & Nephew’s stock is now on the fall, providing now an excellent time to buy. Smith & Nephew stocks had a trading volume of £2.98 million at the time of composing this article. Its 52-week stock price high is 1601 GBX, implying a 28 percent upside objective at the current price of 1242.86 GBX.
Smith & Nephew has a price-to-earnings (PE) ratio of 27.15, and the company pays a 2.24 percent dividend.
3. Johnson & Johnson (NYSE: JNJ)
Johnson & Johnson is the largest healthcare firm in the entire globe. It’s a US-based global pharmaceutical and medical device company with 250 subsidiaries known collectively as the Johnson & Johnson family of companies.
It’s also one of just a few businesses in the world that makes Covid-19 vaccines, a lucrative and important position despite some concerns about risks and efficacy against particular strains.
Johnson & Johnson’s stock, like AstraZeneca’s, has been on the rise for a long period, offering stockholders a large return. Johnson & Johnson stocks had a trading volume of £7.2 million at the time of composing this article. Its 52-week stock price high is $179.92 (£163.44), implying only a 2 percent upside objective at the current price of $176.14(£160).
The price-to-earnings (PE) ratio for Johnson & Johnson is 22.56 and a 2.41 percent dividend is paid by the corporation.
4. UnitedHealth Group Inc (NYSE: UNH)
UnitedHealth Group Inc is a worldwide insurance and managed Healthcare Corporation headquartered in Minnesota. The firm is among the most preferred healthcare stocks for savvy investors, with 95 funds worth $11.70 billion owning shares as of Q3 2021.
UnitedHealth Group reported fourth-quarter earnings of $4.48 per share on January 19, exceeding analysts’ expectations by $0.17. The revenue of $73.74 billion was $774.36 million higher than expected.
The stock of UnitedHealth Group has been steadily rising for a long period, providing substantial returns to owners. UnitedHealth Group stocks had a trading volume of £2.8 million at the time of composing this article. Its 52-week stock price high is $509.23 (£462.58), implying only a 2 percent upside objective at the current price of $497.91(£452.25).
The price-to-earnings (PE) ratio for UnitedHealth Group is 27.54 and a 1.16 percent dividend is paid by the corporation.
5. Pfizer Inc (NYSE: PFE)
Pfizer is a pharmaceutical company based in the United States that was founded in 1849. The majority of the company’s revenue comes from the manufacture of vaccines and medications, with Pfizer’s COVID-19 vaccine helping to propel the company forward during the last year and a half. Pfizer’s stock rose to an all-time high of $61.71 in December 2021 as a result of the vaccine’s popularity, though it has since fallen.
Pfizer appears to be financially healthy, with the latest earnings figures showing a 95 percent growth in sales from 2021. In addition, an adjusted EPS of $4.42 was reported, about doubling the prior year’s figure. Furthermore, Pfizer’s strong acquisition strategy and strong financials suggest that this company is suited for long-term investors seeking positive returns.
Pfizer is currently on a downward trend, making now an excellent time to buy. Pfizer stocks had a trading volume of £30 million at the time of composing this article. Its 52-week stock price high is $61.71(£56.06), implying an 18 percent upside objective at the current price of $52.21(£47.43).
The price-to-earnings (PE) ratio for Pfizer is a whopping 13.20 and a 3.06 percent dividend is paid by the corporation.
6. Zimmer Biomet Holdings Inc (NYSE: ZBH)
Zimmer Biomet Holdings is a medical device firm based in Indiana that makes orthopedic reconstructive equipment and surgical instruments.
The company reported 4th quarter earnings on February 7, with an EPS of $1.95, missing forecasts by $0.03. Zimmer’s sales for the quarter were $2.04 billion, which was $28.63 million less than market expectations.
On February 9, Loop Capital analyst Jason Wittes decreased Zimmer Biomet Holdings, Inc.’s price objective to $140 from $165 following the company’s Q4 earnings miss and FY22 forecast, but maintained a Buy rating on the stock.
The stock of Zimmer Biomet Holdings is currently on the downturn, making this a good moment to invest. Zimmer stocks had a trading volume of £19 million at the time of composing this article. Its 52-week stock price high is $175.97(£159.83), implying a 47 percent upside objective at the current price of $119.20(£108.27).
The price-to-earnings (PE) ratio for Zimmer is a whopping 58.10 and a 0.81 percent dividend is paid by the corporation.
7. ConvaTec Group PLC (LON: CTEC)
ConvaTec is a medical device manufacturer based in the United Kingdom that specializes in critical care, wound care, continence, and ostomy treatment. The company had issued a trading report for the fourth quarter of 2021, on an annual basis, the company’s revenues increased by 4.6 percent compared to the similar quarter the previous year.
Since the beginning of 2020, ConvaTec Group Plc’s shares have earned the second-highest price return among all health care firms listed on the London Stock Exchange. During the time period, the stock achieved a 7.5% price return (YTD).
This is an ideal time to buy shares of ConvaTec as itis currently on a downward trend. ConvaTecstocks had a trading volume of £3.9 million at the time of composing this article. Its 52-week stock price high is 265 GBX, implying a 41 percent upside objective at the current price of 187.10 GBX.
The price-to-earnings (PE) ratio for ConvaTecis 42.03 and a 2.35 percent dividend is paid by the corporation.
8. Dechra Pharmaceuticals PLC (LON: DPH)
Dechra Pharmaceuticals Plc specializes in animal pharmaceuticals. Its operations are scattered over the globe, and it provides solutions where there are no other viable options for treating specific medical ailments.
Since the beginning of 2020, Dechra Pharmaceuticals Plc’s shares have earned the sixth-highest price return among all health care firms listed on the London Stock Exchange. During that time, the company earned a price return of 0.6 percent (YTD).
Dechra Pharmaceuticals stocks had a trading volume of £323.83k at the time of composing this article. Its 52-week stock price high is 5525 GBX, implying a 34 percent upside objective at the current price of 4109 GBX hence considering its downward pattern it indicates that this is an ideal time to buy this healthcare stock.
The price-to-earnings (PE) ratio for Dechra Pharmaceuticals is 61.28 and a 1.01 percent dividend is paid by the corporation.
9. Bio-Rad Laboratories Inc (NYSE:BIO)
The Bio-Rad Laboratories Inc is a producer of specialized technical goods for the biomedical research, medical clinics, and clinical diagnostics sectors situated in California.
Reported earnings of Bio-Rad Laboratories, Inc. was $3.21 in the fourth quarter, beating expectations by $0.34. The company’s revenue for the period was $732.77 million, which was $825,500 higher than expected.
Following the Q4 results, Citi analyst Patrick Donnelly boosted the price objective on Bio-Rad Laboratories Inc to $800 from $750 and maintained a Buy rating on the stock.
Bio-Rad Laboratories is currently on a downward trend, making now an excellent time to buy. Bio-Rad Laboratories stocks had a trading volume of £233.68k at the time of composing this article. Its 52-week stock price high is $832.70(£756.28), implying a 51 percent upside objective at the current price of $548.74(£498.38).
10. Novo Nordisk (NYSE: NVO)
This top European company is a leading company in the diabetes treatment area, for those who are unfamiliar. Its type-2 diabetes medicine has been prescribed to more than 30 million patients worldwide, giving it a market share of more than 30%.
Importantly, persons who receive type-2 diabetes treatment will most likely continue to do so for the rest of their lives. In terms of business, this translates to more than 30 million loyal clients. As a result, despite the fact that Novo Nordisk shares will not create excessively high profits, you will be purchasing a robust and dependable healthcare firm.
Novo Nordisk stock has provided enormous profits to owners from 2021. Novo Nordisk had a trading volume of £1.3 million at the time of composing this article. Its 52-week stock price high is $117.35 (£106.62), implying only a 14 percent upside objective at the current price of $102.45(£93.09).
The price-to-earnings (PE) ratio for Novo Nordisk is 33.59 and a 1.55 percent dividend is paid by the corporation.
Where to buy Healthcare Stock in the UK?
Finding a reliable broker is essential if you want to invest in the best healthcare stocks in the UK. Not only must the broker offer your preferred healthcare stocks, but it must also offer competitive fees and commissions.
We’ve done the research for you and compiled a list of two of the best UK stock brokers for investing in the best healthcare stocks in 2022:
eToro is a top-rated stockbroker with over 100 leading healthcare stocks to choose from. This is part of a broader stock collection that includes 2,400 stocks from 17 different UK and foreign marketplaces. In fact, eToro makes it simple to buy all of the best healthcare stocks we’ve mentioned in this post.
There are no commissions or recurring account fees with this FCA-regulated broker. You will also avoid the 0.5 percent stamp duty fee linked with FTSE 100 share transactions as an added incentive. If this is your first time investing online, eToro is a terrific place to start. This is due to the fact that the platform was created with newcomers in mind.
You can use a UK debit card, credit card, bank transfer, or e-wallet to credit your account at eToro. You can buy your preferred healthcare stocks with a minimum investment of just $50 once you’ve started an account, which normally takes less than 10 minutes. In addition, eToro has a Copy Trading feature. This includes investing passively by copying a skilled stock trader’s trades. Lastly, the FSCS protects your funds at eToro.
- The trading platform is extremely user-friendly
- Invest in equities without having to pay a commission or share dealing fees
- Trade CFDs on stocks, indices, commodities, currency, and other assets
- There are almost 2,400 stocks listed in the UK
- There are more than 150 ETFs available
- Funds can be deposited via a debit/credit card, an e-wallet, or a UK bank account
- Copying other users’ deals is possible
- Protections under the FCA and the FSCS
- Not for professional traders who enjoy performing technical analysis
2. Fineco Bank
Fineco Bank is the place to go if you’re a UK investor seeking a regulated stockbroker to buy healthcare stocks in a user-friendly environment. This Italian-based financial bank offers a wide choice of shares and assets to trade for a flat cost of £2.95 per transaction.
Fineco Bank also caters to Forex and CFD traders, with a portfolio of over 50 currency pairs and CFDs available, with spreads as low as 0.4 pips. If you’re a futures trader, this UK stockbroker lets you trade on CME Micro Futures for as little as $0.70 a contract. Overall, UK shares investors may anticipate paying £0.00 per month in fees, no custody charges, no initial deposit, no inactivity charges, and no market connectivity expenses.
The platform is governed by the Financial Conduct Authority (FCA), a well-known financial regulator in the sector, for its tougher licensing standards and guidelines.
- 100 free trades
- Tools for portfolio management are included.
- Excellent commentary and fundamental analysis.
- Tracking investment success with a simple system
- There is a 25% annual management charge.
How to Buy Healthcare Stocks?
We’ll lead you through the investment procedure now that we’ve discussed the best UK share dealing platforms for buying healthcare companies.
For this demonstration of buying Healthcare stocks, we have chosen eToro, which is a commission-free and FCA-regulated site.
Step 1: Open an Account
You must first create an account with eToro. Go to the main website of eToro and click the join now button a new box will pop-up.
You’ll need to fill out some personal details and contact details here. You must also create a username and password, as well as verify your mobile number.
Step 2: Confirm Identity
The following are the two documents you need to submit to confirm your identity:
- Utility bill or bank account statement
- Valid passport or driver’s license
Step 3: Deposit Funds
Before you may purchase your preferred healthcare stock, you must first make a deposit.
You can do so by using one of the payment methods listed below:
- Debit/Credit cards
- E-wallets (Paypal, Skrill, or Neteller)
- Bank transfer
Step 4: Select the healthcare stock you want to invest in
Just search for the company you want to invest in. In this case, we’re considering purchasing Pfizer stock.
Then you must select the ‘Trade’ button.
Step 5: Buy healthcare Stocks
Enter your desired investment amount and click the ‘Open Trade’ button.
In conclusion, healthcare stocks are proven to be popular among British investors. We’ve explored ten prospective healthcare stocks to invest in this guide, but you should still do your own research.
Nonetheless, with hundreds of firms to pick from in dozens of specialty sectors, building a portfolio of the best healthcare stocks is simple.
You can buy your preferred shares commission-free if you use an FCA broker like eToro. The site also allows you to start investing in healthcare stocks for as little as $50, which is ideal for diversification.
By clicking on the button below, you may buy healthcare stocks on eToro in less than 10 minutes!
Frequently Asked Questions
What’s the best healthcare stock to invest in?
AstraZeneca plc, one of the best-performing healthcare firms in 2022. AstraZeneca stock is on the rise for a long time giving a huge return to the stockholders
How can I invest in healthcare stocks in the United Kingdom?
All you need to invest in healthcare stocks in the UK is an account with a reputable broker. Over 2,400 commission-free stocks are available on eToro, with many in the healthcare sector.
What is the best dividend-paying healthcare stock?
Johnson & Johnson is undoubtedly the greatest dividend-paying healthcare stock. After all, the US corporation has increased its dividend for over 60 years in a row!
How do you buy international healthcare stocks?
Many brokers in the United Kingdom now offer international stock trading. For instance, eToro provides shares from 17 different markets.
Are healthcare equities a wise investment in a downturn?
Although healthcare equities may fall in value along with the rest of the market, many of them are frequently immune to recessions. This is due to the fact that they are items and services that will always be in demand.