According to analysts, we've recently compiled a list of the 12 best healthcare stocks to buy. In this article, we will introduce Sarepta Therapeutics, Inc. We'll see where (NASDAQ:SRPT) fights 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. The quarterly newsletter 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).
Laboratory technician wearing a white coat holding a microscope and examining a vial of biopharmaceuticals.
Number of hedge fund holders: 50
Average upward likelihood: 74%
Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is a commercial stage biopharmaceutical company focusing on the discovery and development of RNA-targeted therapies, gene therapy, and other genetic therapies for the treatment of rare diseases. Needham analyst Gill Blum maintained his “buy” rating and maintained his price target at $202.00. This rating was made by Sarepta Therapeutics, Inc. It is supported by a combination of factors that revolve around the positive outcomes of the Embark Study (NASDAQ:SRPT). In particular, the two-year results from this study showed significant improvements on various measures of Duchenne muscular dystrophy (DMD), reflecting the potential of elevedi as a treatment.
Furthermore, the data show that older patients in the crossover group witnessed functional benefits compared to younger patients in the original study cohort, implying a wide range of clinical benefits. In particular, Sarepta Therapeutics, Inc. Elevidys, an FDA-approved gene therapy for (NASDAQ:SRPT), supports the company's key moat and holds a leading position in muscle dystrophy therapy. In the fourth quarter of 2024, the company increased its total net worth revenue to 75% prior, bringing Elevidys to a strong 112% increase over the previous quarter.
Sarepta Therapeutics, Inc. (NASDAQ:SRPT) net product revenues were $638.2 million in the fourth quarter of 2024 and $17.9 billion in 2024, surpassing full-year guidance by more than $100 million. The company repeated its full year total net product revenue guidance of $2.9 billion to $3.1 billion for 2025.
According to analysts, the overall SRPT ranks sixth on the list of the best healthcare stocks. Although we acknowledge the potential of SRPT as an investment, 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 SRPT, 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.
