Healthcare was one of the most exciting segments of 2014, and experts believe that this sector would record reasonable numbers for 2015 as well. Investors are clearly spoiled for choice when it comes to some good healthcare stocks as most of them have been adding good value to shareholders. If you are an investor who is looking for a good return on investment, healthcare stocks are the best bet for you. With so many options available, here are the top three stocks in which you can invest in 2015, in this sector, as you can be assured of handsome returns on your investment.
UnitedHealth Group
If there was one sector that UnitedHealth Group (UNH, Financial) gained hugely from in 2014, it was the exchange model. In this model, uninsured people were given coverage and medical assistance (Medicaid) was extended to 27 states. Though UnitedHealth Group is the biggest name in the healthcare industry of the U.S. and has been in that position for quite some time now, the earnings and the value that it created to its shareholders increased multi-fold because of this exchange model for the year 2014. Experts predict that this model will be a huge success in 2015 as well. This would make UnitedHealth Group, the biggest healthcare stock for this year. This group is expected to deliver earnings per share in the range of $6 to $6.25 for this year from the current rate of $5.56 per share.
Currently the price per share of UnitedHealth Group is $105.77.The share price trend of this group for the last year is explained in the chart below. This shows a steady increase in price and hence experts are optimistic about UnitedHealth Groups’ performance for 2015 as well.
Community Health Systems
As lots and lots of people are enrolling in healthcare and Medicaid programs, one of the leading hospital operators in the U.S., Community Health Systems (CYH, Financial) has emerged the top gainer in this sector. Share prices of Community Health Systems have seen a continuous increase in the last year due to the large number of customers who enrolled in the insurance program. The trend in their share price can be seen from the chart below:
Another factor that has helped Community Health System’s rise in value is its acquisition of Health Management Associates. This deal has made the group, one of the leaders in the hospital network in the U.S. All these positive factors are expected to bring about at least 23% of increase in the earnings per share for 2015($3.97) for the group, when compared to the last year’s figures.
Cerner Corp
Cerner Corp (CERN, Financial) is the market leader when it comes to healthcare software solutions service providers. This group offers excellent integrated solutions that cover an impressive network of hospitals, doctors, patients, health care specialists and the like. Cerner has revolutionised the world of healthcare software solutions by bringing about a structure in the healthcare process like booking for a service, paying for the same, speedy allocation of service for emergency requirements and all other factors that contributed to the streamlining of the process.
Of late, more and more healthcare companies are using the software solutions of Cerner Corp, which has increased the company’s sales figures by 15% to $840 million during Q3 2014. As there is a phenomenal demand for the software solutions of Cerner, the sales figures are expected to see a boom for 2015. Earnings per share are expected to touch $1.96 during 2015, a jump of 18.7% from the price during 2014. Currently the company is priced at 65.59 per share and the share price trend for the last year is shown here:
Conclusion
Healthcare segment is one of the most stable sectors in the stock market today. All the industries are performing quite well for a consistent period of time and the same trend is expected to continue for 2015 as well. However, since the stock market is subject to fluctuations and sudden volatility, one should tread cautiously by spreading one’s investment in different industries and not just focus on the healthcare industry; however profitable it may seem to be.
