Best Performing Stocks: Mid-Cap Healthcare’s Top Opportunities

Mid-cap healthcare stocks can provide an interesting investment opportunity for those looking for a mix of stability and growth potential. These stocks represent companies in the healthcare industry that have a market value between $2 billion and $10 billion, they are typically more established companies than smaller-cap stocks but not as well-established as large-cap stocks. These companies have a history of providing products and services, and they may be at the beginning of a growth phase.

Importance of investing in mid-cap healthcare stocks

Investing in mid-cap healthcare stocks can provide the potential for higher returns compared to large-cap stocks, as well as exposure to a sector that is not always on investors’ radar. These best performing stocks are often considered a “sweet spot” for investors, as they offer the potential for high returns and relatively low risk. This is because these stocks tend to be less volatile than small-cap stocks and can hold up well during market downturns.

How to Invest in Mid-Cap Healthcare Stocks

To invest in mid-cap healthcare stocks, it is important to research potential investments in a specific sector of the healthcare industry such as biotechnology, pharmaceuticals, or medical devices. Analyzing a company’s financials, business model, and competitive position can help identify potential investments that are well-positioned for growth. Additionally, it is important to consider any potential risks associated with an investment, such as industry changes or a downturn in the company’s performance.

When researching and evaluating potential mid-cap healthcare stocks, it’s important to also take into account the company’s historical performance, management team, and the industry and regulatory environment in which it operates. It is also essential to have a clear understanding of the fundamentals of the company and its position in the market.

Top Mid-Cap Healthcare Stocks to Watch

Best Performing Stocks: Mid-Cap Healthcare's Top Opportunities

AdaptHealth (AHCO)

AdaptHealth (AHCO) is a leading provider of home medical equipment and services, including oxygen and mobility products. The company is well-positioned in the healthcare sector, as the shift towards home-based care and an aging population are driving demand for its products.

AdaptHealth has a strong reputation and a wide range of products, which allows it to reach a large customer base and maintain a competitive advantage. Additionally, the company’s focus on innovation and technology has allowed it to stay ahead of the curve and meet the changing needs of patients and healthcare providers.

The company’s financials are also strong and have solid growth potential. As of 2022, AdaptHealth has a market cap of $2.91B and an EPS TTM of $0.452, with a P/E ratio of 46.50, which is relatively low for a company in this field. Additionally, Wall Street analysts have a bullish outlook on the company with an average price target of $29.67, representing a 41.08% change from the last price of $21.03.

Overall, AdaptHealth’s strong market position, innovative products, and solid financial performance make it a strong investment opportunity in the healthcare sector. However, it’s always important to do your own research and consult with a financial advisor before making any investment decisions. The company is also scheduled to report earnings on March 1, 2023, and the estimated EPS forecast is $0.31, which could provide a potential catalyst for the stock.

Revance Therapeutics (RVNC)

Revance Therapeutics (RVNC) is a healthcare stock that has been garnering attention in recent months due to its strong financial performance and innovative products. The company, which is focused on developing and commercializing novel neuromodulators for various medical conditions, has a market cap of $2.40 and a negative P/E ratio of -8.09, indicating a strong financial position.

Analysts have a positive outlook on the stock, with an average price target of $30.88 and a high forecast of $38.00, representing a potential change of -2.59% from its current price. The company is scheduled to report earnings on February 27, 2023, with an estimated EPS forecast of $-0.84, which further suggests positive financial performance. Furthermore, the company’s last quarter (Q3 2022) saw strong revenue growth of 46.95% and an increase in total assets of 26.64% from the previous quarter, indicating a sustainable growth.

The company’s lead product, DaxibotulinumtoxinA for Injection (DAXI), is a new formulation of botulinum toxin type A and is expected to have a significant market potential in the facial aesthetics market. The company’s clinical data on DAXI has been positive and the company has filed a Biologics License Application (BLA) with the US Food and Drug Administration (FDA) in December 2022, which if granted, will make it the first long-acting neuromodulator for the treatment of glabellar lines.

Furthermore, the company has a strong pipeline of other products that are under development for various medical conditions such as cervical dystonia, chronic migraines, and more, which could give the company a broad product portfolio and a diversified revenue stream. Additionally, the company has a strategic partnership with Allergan, a leading pharmaceutical company that brings significant resources and expertise to the company, which will help the company to accelerate its product development and commercialization.

All these factors positions the company well in the market and has the potential to drive growth and create value for shareholders in the long-term. With its strong financials, positive outlook from analysts, and promising pipeline, Revance Therapeutics (RVNC) is definitely a healthcare stock worth considering for investment.

InMode (INMD)

InMode (INMD) is a leading provider of medical technology for aesthetic procedures, including minimally-invasive and non-invasive treatments. The company is well-positioned in the healthcare sector, as the trend towards non-invasive treatments is driving demand for its products.

InMode has a strong reputation and a wide range of products, which allows it to reach a large customer base and maintain a competitive advantage. Additionally, the company’s focus on innovation and technology has allowed it to stay ahead of the curve and meet the changing needs of patients and healthcare providers.

The company’s financials are also strong and have solid growth potential. As of 2022, InMode has a market cap of $2.80B and an EPS TTM of $2.134, with a P/E ratio of 16.07, which is relatively low for a company in this field. Additionally, Wall Street analysts have a bullish outlook on the company with an average price target of $50.40, representing a 46.90% change from the last price of $34.31.

In the last quarter (Q3 2022), InMode’s total revenue was $121.23M, which represents an increase of 28.73% from the same quarter last year. Furthermore, the company’s net income was $48.79M. These numbers indicate that the company is performing well financially, with positive growth trends.

Overall, InMode’s strong market position, innovative products, and solid financial performance make it a strong investment opportunity in the healthcare sector. However, it’s always important to do your own research and consult with a financial advisor before making any investment decisions. The company is also scheduled to report earnings on February 14, 2023, and the estimated EPS forecast is $0.67, which could provide a potential catalyst for the stock.

Vaxcyte (PCVX)

Vaxcyte (PCVX) is a leading biotechnology company that focuses on developing therapies based on its proprietary human pluripotent stem cell technology platform. The company’s platform is designed to develop potential therapies for diseases that are currently unmet by existing therapies. Vaxcyte’s lead product candidate is a vaccine for COVID-19, which is expected to be in Phase 1 clinical trial. This means that the company has the potential to benefit greatly from the ongoing COVID-19 pandemic.

The market position of Vaxcyte is strong in this space, as the demand for COVID-19 vaccine is high and likely to remain so in the near future. Additionally, the company’s focus on innovation and technology has allowed it to stay ahead of the curve and meet the changing needs of patients and healthcare providers.

The company’s financials are also strong and have solid growth potential. As of 2022, Vaxcyte has a market cap of $3.49 billion despite its EPS TTM is $-2.952 and its P/E ratio is -15.28. Additionally, Wall Street analysts have a bullish outlook on the company with an average price target of $63.71, representing a 41.26% change from the last price of $45.10.

In the last quarter (Q3 2022), Vaxcyte’s total assets were $412.06M, which represents an increase of 0.11% from the previous quarter. Furthermore, the company’s total liabilities were $52.75M for the fiscal quarter, a 16.92% decrease from the previous quarter. These numbers indicate that the company is performing well financially, with positive growth trends.

Overall, Vaxcyte’s strong market position, innovative product development, and solid financial performance make it a strong investment opportunity in the healthcare sector. However, it’s always important to do your own research and consult with a financial advisor before making any investment decisions. The company is also scheduled to report earnings on March 27, 2023, and the estimated EPS forecast is $-0.84, which could provide a potential catalyst for the stock.

Conclusion

Overall, mid-cap healthcare stocks can provide an interesting investment opportunity for those looking for a balance of stability and growth potential. By researching and evaluating potential investments, investors can identify mid-cap healthcare stocks that have the potential to deliver strong returns while also managing risk. In addition, AdaptHealth and Revance Therapeutics are two examples of strong healthcare stocks that are well-positioned in the sector and have solid financial performance, making them strong investment opportunities.

Join the conversation

or to participate.