3 Healthcare Stocks That Should Be on Your Radar in 2023

Key Takeaways:

• Healthcare is often considered a good investment because it’s a human necessity
• Pfizer Inc. (PFE), Novo Nordisk A/S (NVO), and Eli Lilly and Co. (LLY) are three healthcare stocks that deserve careful consideration
• Like any sector, it’s important to do your own research before diving in

There are some things that humans simply can’t live without (or will at least have a very tough time without): food, shelter, water, and health.

You’ve likely heard investors speak highly of real estate investing because it covers the need for a place to live, which means that property will always be valued and in demand. Healthcare covers another, even more vital, need: the need to stay alive and healthy.

For that reason, investors tend to consider it a good sector to invest in — being healthy is not at risk of being a passing fad.

Indeed, healthcare has shown itself to hold up better during recessions than many other sectors — even when the economy is doing poorly, people still need medical treatment. But figuring out which healthcare stocks to invest in can be a challenge — especially if you don’t have deep knowledge of the sector.

If you’re wondering what healthcare stocks to buy in 2023, here are a few that you might want to consider.

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Pfizer Inc (PFE)

Pfizer became a household name in 2021 following the launch of its COVID vaccine. But even before then, chances are that you’d heard of some of Pfizer’s products, like Advil, Zoloft, Viagra, and Xanax.

Although Pfizer is based in the United States, it’s regionally diversified, with half of its revenue coming from outside of the country. That can help the company stay resilient even during major domestic changes.

For example, one concern with healthcare stocks is the possibility of major change to the US healthcare system, such as Medicare for All, but Pfizer’s global presence could help it adapt more easily.

Novo Nordisk A/S (NVO)

Novo Nordisk is a Danish company that sells medical products in more than 160 countries. The company is deeply ingrained in the European healthcare system — its CEO, Lars Fruergaard Jørgensen, is also the vice president elect of the European Federation of Pharmaceutical Industries and Associations (EFPIA) — even though its biggest market is the United States.

Novo Nordisk stock has been steadily rising over the past five years, and the company has received praise for being one of the best companies to work for. It was also named the world’s most sustainable company in 2012 by Corporate Knights, which may help it stay strong even amidst increasingly stringent climate regulations.

Eli Lilly and Co. (LLY)

Eli Lilly has been around since 1876, and has since proven its longevity and staying power. The company makes well-known drugs to treat depression (Prozac) and diabetes — the chronic nature of which can help smooth out the company’s earnings.

Eli Lilly has several new products that it hopes to bring to market soon, including an anti-cancer drug and Alzheimer’s medication, which could prove to be big growth drivers for the company.

The bottom line

Unlike tech trends and fashion fads, healthcare isn’t going anywhere. The major healthcare companies are regionally diversified and sell products that are always in demand. This makes them good defensive plays in many investors’ opinions.

Plus, there’s always opportunity for growth when new products are launched — Pfizer’s stock shot up following the release of the COVID-19 vaccine.

If you’re trying to figure out which healthcare stocks to buy, you may want to consider enlisting the help of Q.ai’s AI-powered investment tech. Q.ai’s Value Vault Kit includes U.S. large-cap stocks from various industries and is automatically rebalanced each week by an AI investment assistant to help you stay on top of the market.

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