Health Care Investing In The Age Of COVID-19

Health Care Investing In The Age Of COVID-19
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One of the biggest sectors that have truly impacted the world during this global pandemic is the economy. The market has become extremely volatile. The industries that were once deemed as leaders in terms of profitability were pulled down, experiencing all-time lows for the very first time ever since their establishment. We're seeing big companies that have existed for decades, suddenly worrying about their stability in the post-pandemic world.

While there are certain industries that have seen recent highs as well, such as entertainment, food, and others that are deemed "essential" during the crisis, there's no surprise that health industries are doing really well. In fact, there are a few sub-industries that are even doing better than others. And should you wish to invest in them, we recommend taking a look at small business financing options to get the capital you need.

Molecular Diagnostics Industry

The first booming sub-industry in health care that we are going to feature is molecular diagnostics. It is in charge of testing the presence of viruses in the body. Its increased demand during this pandemic is understandable, with millions of tests needed across the globe per month.

If you intend to get into molecular diagnostics, then we recommend the following companies:

●      Abbott Labs (ABT)

●      LabCorp Holdings (LH)

●      PerkinElmer (PKI)

●      Thermo Fisher (TMO)

●      Roche (RHHBY)

Serological Diagnostics Industry

Knowing the presence of viruses inside the body is indeed crucial in diagnosing the infected. However, being able to check the presence of the antibodies in the body that can defeat the virus, is equally important as well. That's where serological diagnostics come in. In fact, we believe that this sub-industry will be even more exceedingly crucial in the long run as we prepare for the post-pandemic future.

If you intend to get into serological diagnostics, then we recommend the following companies:

●      AbbottLabs (ABT)

●      Becton Dickinson (BDX)

●      Chembio Diagnostics (CEMI)

●      Roche (RHHBY)

Pharmaceutical Industry

Speaking of the post-pandemic world, we recognize that we can get there with the help of the pharmaceutical industry as they develop antivirals that can eventually function as a cure for the novel coronavirus (Covid-19). 

There are a lot of companies that you might want to look into in terms of investment such as industry leaders GlaxoSmithKline (GSK) and Sanofi (SNY). However, the one that's really making waves right now is Gilead (GILD), the company that developed remdesivir.

Vaccine Development Industry

Prevention will always be better than cure, so as the various industry leaders race to push out the first-ever vaccine for Covid-19, all the investors could really do right now is wait and hold their breath for the company that does win later on.

At the time of writing this article, though, here are the leading companies that people are placing their bets on:

●      Johnson & Johnson (JNJ)

●      Novavax (NVAX)

●      Pfizer (PFE)

●      Sanofi (SNY)

●      VIR Biotechnology (VIR)

Personal Protective Equipment Manufacturing

Let's be honest, though. The previous sub-industries that we have mentioned above have already been performing particularly well even during the pre-pandemic economy. The real achiever in this crisis, especially in receiving more attention (and profit) is personal protective equipment manufacturing.

This sub-industry is in charge of producing face masks, disposable protective clothing, and other protective gear that both civilians and frontliners use daily in order to help curb the spread of contagion. In fact, national governments across the world are scrambling to secure contracts from these companies in light of the overwhelming demand.

Two companies, however, were bold enough to step up for the task, and thus, the ones we recommend for you to consider investing in: 3M (MMM) and Honeywell (HON).

We are unsure, though, how long their performance will hold once the pandemic dies down. This crisis might change the world as we know it with the demand for their products only slightly waning down, or we can revert back to our pre-pandemic normalcy with no demand for these products, especially from civilians.

Healthcare IT Industry

What we can comfortably predict, however, is the continued rise of interest in companies that are positioned between the lines of both healthcare and technology. Yes, the healthcare IT industry is definitely here to stay. In fact, even Silicon Valley giants, Alphabet (GOOG) and Apple (AAPL) have invested in their own healthcare research divisions.

Other companies that we also recommend looking into are:

●      Cerner Corporation (CERN)

●      Livongo (LVGO)

●      Teladoc (TDOC)

●      Veeva Systems (VEEV)

Before Deep-Diving Into HealthCare Investing

And now that you have a solid outlook in the sub-industries that you can invest in under health care, the next thing that you probably want to do now is to just get started. Before you change tabs, though, we want to give you a few more tips to keep in mind when it comes to investing in general during this global pandemic:

●      Do your research. Reading this post is certainly a good way to get you started. You already recognize the impact of this crisis in health care. However, as we have briefly mentioned above, health care is not the only industry outperforming. There's also some wisdom in checking out industries that are not performing very well right now but are sure to take off once again after the storm has passed.

●      Think long-term. You're not just investing for the pandemic year, but we want to think that you're doing so to secure your financial future as well. Hence, you want companies with a good reputation. Research on your chosen company's stability. What are their future plans? Do they have publicized debts and close-calls even before the pandemic?

●      Act quick. The perfect time to buy stocks is during a big tip, such as the one that's currently happening due to this health crisis. Hence, be ready to grab the opportunity and act quickly. Don't wait too long. These low prices won't stay that way forever.

Health Care Investing in 2020

This pandemic is certainly not a crisis that the world was expecting to happen anytime soon, but here we are. All we can do right now is to cope and make the most of the marketable opportunities that it presents. There is always the possibility not only to protect finances during pandemic, but also invest smart and expand your own budget.

Its sub-industries in diagnostics, pharmaceutical, and equipment manufacturing are doing well, for anyone who is planning to invest amidst the highly fluid and unpredictable economy. Just remember to do your research and invest wisely. Good luck!

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