Invest in Two Straightforward Healthcare Shares Worth Purchasing for $500 Immediately
Investing wisely in the healthcare sector can be a smart move, given the constant demand for medical services and products. Here are two great options for investing with a limited budget of $500.
1. Vertex Pharmaceuticals
I've got my eye on Vertex Pharmaceuticals (VRTX). This biotech stock is an excellent pick for several reasons.
First, Vertex holds a strong market position, being one of the top players in its field. Its monopoly in cystic fibrosis treatments, particularly with popular products like Trikafta/Kaftrio, brings in impressive revenues. In 2023, the company reported sales of $10.2 billion from Trikafta alone. Vertex is also on the brink of launching Alyftrek, a potentially even more profitable CF therapy after receiving FDA approval in December 2024.
Beyond CF, Vertex is expanding into other areas such as sickle cell disease and transfusion-dependent beta-thalassemia with Casgevy, a gene-editing therapy. The company also recently received FDA approval for Journavx, a non-opioid painkiller with significant market potential. Vertex's pipeline is promising as well, with late-stage candidates for pain management and kidney diseases.
Also, Vertex has the financial means to continue growing through strategic business development deals. With a cash stockpile of $6.1 billion at the end of 2024, the company is in a strong position to acquire or partner with other successful biotechnology companies.
2. Pfizer
Pfizer is another solid choice for investing in the healthcare sector. Buying a share of this select pharmaceutical giant will cost around $472, leaving $28 for additional investments.
Pfizer faces a slight patent cliff during the coming years as multiple drugs like Eliquid, Ibrance, Xeljanz, and Xtandi lose their market exclusivity. However, the company presents a compelling proposition for income and value investors. Pfizer boasts a forward dividend yield of 6.64%, one of the highest in the healthcare sector. The company also has a decent dividend growth outlook, making it an attractive income source.
At a P/E ratio of 8.7, Pfizer appears undervalued compared to the sector's average P/E of 17.8. Additionally, Pfizer's low PEG ratio of 0.18 indicates better-than-expected growth potential. Despite not experiencing exponential growth, Pfizer is expected to provide solid total returns through moderate growth and its generous dividend payments.
In summary, Vertex Pharmaceuticals and Pfizer present attractive investment opportunities in the healthcare sector with their respective strengths in innovative therapies, diverse portfolios, and promising pipelines. Investors can take advantage of these companies with a modest budget to diversify their investment portfolio and potentially benefit from their future growth.
Considering the promising potential in the biotech sector, one could consider investing in Vertex Pharmaceuticals (VRTX), known for its monopoly in cystic fibrosis treatments and impressive revenue streams. With a limited budget of $500, buying shares of Pfizer, priced at approximately $472, leaves $28 for other investments.
Pfizer, despite facing a patent cliff, offers a compelling proposition for income and value investors with a high forward dividend yield of 6.64% and a decent dividend growth outlook. Vertex, on the other hand, boasts a robust pipeline with late-stage candidates for pain management and kidney diseases, as well as potential profits from Alyftrek and Casgevy, its CF and sickle cell disease therapies.
Investors might also consider the financial strength of Vertex, which boasts a cash stockpile of $6.1 billion, giving it the means to pursue strategic business deals or acquisitions in the biotech field. These two companies, Vertex Pharmaceuticals and Pfizer, represent smart investments in the healthcare sector, offering attractive opportunities for growth and income.
Moreover, considering the constant demand for medical services and products, investing in biotech stocks like Vertex and Pfizer could provide an opportunity to capitalize on the potential profits in nephropathy treatments or other healthcare advancements, as shown by the recent approval of Journavx, a non-opioid painkiller with significant market potential.
