According to analysts, we've recently compiled a list of the 12 best healthcare stocks to buy. In this article, we will introduce Moderna, Inc. We'll see where (NASDAQ: mRNA) stands up against other healthcare strains.
McKinsey reported that since 2019, the US healthcare industry has witnessed significant financial pressure. This is evidenced by the fact that industry EBITDA as a percentage of national health spending has been reduced by an estimated 150 bps (base points). This fall has impacted payers and providers. In particular, the estimated payer margin for 2024 could be at the lowest level in a decade. Although providers face labor shortages, inflationary pressures are still not fully absorbed by the broader healthcare system.
Among these past trends, what does the future hold?
McKinsey believes healthcare professionals will need to consider potential policy and regulatory changes that could occur in the coming years as the 2025 change in federal administration. Furthermore, the industry continues to undergo a changing growth dynamic. Health Services and Technology (HST) revenue pool is projected to increase at a CAGR of 8% from 2023 to 2028. Providers and payers.
Furthermore, pharmacy services can see continuous growth, focusing primarily on specialized pharmacies. McKinsey said growth is expected to be driven by increased use and the launch of new treatments. In particular, specialist pharmacy revenue is projected to rise at 8% CAGR from 2023 to 2028, boosting specialty pharmacies and managed service providers EBITDA.
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McKinsey estimates Healthcare EBITDA is expected to increase by 7% CAGR in 2028 from a baseline of $676 billion in 2023. (such as HST and specialty pharmacies), growth is predicted to be faster. Software platforms play a key role in the healthcare ecosystem, enabling providers and payers to be more efficient in complex environments.
Technological innovations (such as generator AI and machine learning) continue to create opportunities for stakeholders across segments by automating workflows, driving data connectivity, and generating actionable insights. McKinsey further added that due to higher utilization and increased pipelines (such as oncology), specialized pharmacies revenues are expected to experience rapid growth. The increase in the use of specialist drugs continues to expand the profit pool of specialist pharmacies.
The story continues
Our Methodology
Analysts said they used screeners to list the 12 best healthcare stocks to buy and filtered out companies that cater to the healthcare sector. Next, we chose the stocks that analysts saw best. Finally, as of February 4th, stocks were placed in ascending order of average potential for a rise. As of the third quarter of 2024, he also mentioned the hedge fund sentiment regarding each stock.
At Insider Monkey, hedge funds are obsessed with stocks stacked on them. The reason is simple. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. Quarterly Newsletter's strategy has chosen 14 small and large caps per quarter, returning 275% since May 2014, breaking the benchmark by 150 percentage points (see more here).
Why is the moderna (mRNA) crashing?
Surrounded by vials and beakers in a modern lab, the scientist proudly displays the vaccine.
Number of hedge fund holders: 34
Average upward likelihood: 72.6%
Moderna, Inc. (NASDAQ: MRNA) is engaged in the discovery, development and commercialization of messenger RNA therapeutics and vaccines for the treatment of infectious diseases, immuno-oncology, rare diseases, autoimmune, and cardiovascular diseases. It's a technology company. Modernida (NASDAQ: MRNA) stocks were under the radar of investors after Oracle Chairman Larry Ellison discussed the potential for AI transformation in healthcare during a White House meeting. Ellison emphasized that AI can revolutionize cancer detection, treatment and vaccine development, resulting in groundbreaking capabilities.
Ellison also claimed that using AI can robotically generate messenger RNA-based vaccines in just 48 hours. Especially Moderna, Inc. (NASDAQ: mRNA) uses mRNA technology to work with Merck to develop cancer vaccines. Furthermore, the success of cancer vaccines was Moderna, Inc. It offers transformational opportunities for (NASDAQ: mRNA). The company's diverse pipeline is expected to provide significant long-term revenue potential across respiratory vaccines, cancer treatments, and rare disease treatments.
The versatility of the mRNA platform allows for rapid development and adaptation of new therapies that meet a wide range of medical needs. Moderna, Inc. (NASDAQ:MRNA) operates as a technology-driven platform to achieve drug development, extended production and increased margins using innovative mRNA technologies.
According to Analyst, the overall mRNA ranks 7th in the list of the best medical stocks. Although we acknowledge the potential as an investment in mRNA, our belief is that some deeply undervalued AI stocks offer higher returns and greater promises within a shorter time frame. It is in the belief that it holds. If you're looking for deep, undervalued AI stocks that are more promising than mRNA, but trade less than five times the revenue, check out our report on the cheapest AI stocks.
Read next: Buy 20 Best AI Stocks to Buy Now a List of AI Companies with Market Capitals under $2 billion.
Disclosure: None. This article was originally published on Insider Monkey.
