7 Health Care Stocks to Buy for Robust Returns

If you are looking to diversify your portfolio away from trade-war jitters and earnings volatility, consider the highly lucrative health care sector.

medicine pills on dollars
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If you are looking to diversify your portfolio away from trade-war jitters and earnings volatility, consider the highly lucrative health care sector.

Most of the sector’s companies don’t fall under the tariffs being threatened on all sides. Indeed, the health care sector – as measured by the Health Care Select Sector SPDR (XLV (opens in new tab)) – is the third best-performing sector so far in 2018, behind technology and consumer discretionary stocks. From a breadth perspective, health care trailed only technology as of mid-July, with 67% of its components posting gains since the start of the year.

Another attractive feature is health care’s “pop” potential – prices can surge on the back of positive clinical trial data or key regulatory approvals.

However, prices can plunge just as quickly if data or decisions disappoint. That’s why investing in the health care sector requires some savvy analysis first. TipRanks market data (opens in new tab) can help, as it allows you to tune into the experts’ takes.

Here are seven promising health care stocks to buy, according to Wall Street’s pros. Each of these stocks has a “Buy” or “Strong Buy” analyst consensus rating and juicy upside potential, with analysts believing some could double or more.

Data is as of July 26, 2018. Consensus price targets and ratings based on “Best Performing” analysts. Stocks are listed in alphabetical order.

Harriet Lefton
Contributing Writer, Kiplinger.com
Harriet Lefton, originally from the U.K., began her career as a journalist specializing in the niche world of metal markets. She graduated from the University of Cambridge before becoming a qualified U.K. lawyer. Now she has turned her attention to the world of financial blogging, covering U.S. stocks, analysts and all manner of things finance-related.