Investing in the stock market can sometimes feel like taking a “shot in the dark.” However, some industries, such as hospital stocks, have proven to be safer and more stable investments.
Healthcare remains a critical sector with a growing demand for services due to an aging population and advancements in medical technology. Hospital stocks are an excellent choice if you want a low-risk investment with solid growth potential.
This list highlights some of the best healthcare stocks to consider for your portfolio.
Best Hospital Stocks
HCA Healthcare, Inc. (NYSE: HCA)
HCA Healthcare, Inc., is a private hospital company that has been around for over 50 years. It has hospitals in 20 U.S. states and the United Kingdom.
Based in Nashville, Tennessee, HCA works with several subsidiaries such as HCA International, HCA Houston Healthcare, Healthtrust Purchasing Group, and LP.
The company has a significant presence in the acute care hospital services sector. Its revenue has steadily increased over the years and is likely to continue growing. HCA’s shares have already seen significant growth.
HCA also offers a good investment opportunity due to its high dividends, profit growth over time, and other factors that make it a great option. This could be a solid addition to your healthcare stocks portfolio.
Universal Health Services, Inc. (NYSE: UHS)
Universal Health Services, Inc., is a diversified healthcare services company.
UHS offers hospitals and physician staffing solutions for medical facilities across the U.S. and the U.K. The company also provides comprehensive treatment centers for mental healthcare to adults, adolescents, and children.
UHS, based in King of Prussia, Pennsylvania, operates with subsidiaries like Ardent Health Services and George Washington University Hospital. It has a robust presence in behavioral healthcare services.
The organization has earned a spot on the Forbes Platinum 400 list of the best big companies in America recognized for profitability and growth. With over 90,000 employees, UHS is a strong player in the healthcare industry, making it a noteworthy addition to any list of best healthcare stocks.
Check out their latest FitchRatings.
Encompass Health Corporation (NYSE: EHC)
Encompass Health Corporation is a diversified healthcare company providing acute care and behavioral health services to patients in more than 400 locations. Based in Birmingham, Alabama, EHC serves patients with mental or physical disabilities and other illnesses.
The company operates facilities specializing in rehabilitation, long-term nursing/subacute care, and community mental health services. Encompass Health Corporation is known for its high liquidity, which leads to more stable stock prices.
EHC’s focus on both acute and behavioral health services positions it well in the healthcare sector. This makes it an attractive option for investors seeking exposure to medical stocks.
Medical Properties Trust, Inc. (NYSE: MPW)
Medical Properties Trust, Inc., headquartered in Birmingham, Alabama, focuses on healthcare real estate.
They buy hospitals, rehab centers, and other facilities, then lease them back to healthcare operators. This strategy ensures a steady income stream through long-term leases.
MPW’s business model is built on creating value by managing these assets efficiently.
The stability offered by these leases, along with the company’s growth potential through acquisitions, makes MPW a potential contender in the healthcare stocks sector.
Tenet Healthcare Corporation (NYSE: THC)
Tenet Healthcare Corporation provides healthcare services with hospitals across different states in the U.S. This company operates out of Dallas, Texas, and has been around since 1972.
THC offers various services, including surgical centers, rehabilitation hospitals, clinics, and behavioral health facilities. The company has a substantial presence in the acute care hospital services sector.
Tenet Healthcare’s strategic initiatives and continuous service expansion could drive its growth. The company’s extensive network and diverse service offerings make it a significant player in the medical stocks sector.
Select Medical Holdings Corporation (NYSE: SEM)
Select Medical Holdings Corporation specializes in long-term acute care, outpatient rehabilitation, and occupational health services.
The company operates specialty hospitals and clinics that provide services related to physical, occupational, and speech rehabilitation.
Based in Mechanicsburg, Pennsylvania, Select Medical has established itself as a leading provider of outpatient rehabilitation services. Its focus on long-term acute care and rehabilitation positions it well in the healthcare industry.
Select Medical’s steady revenue streams and market position could provide stability for investors. The company’s emphasis on quality healthcare services supports its potential for continued growth in the healthcare facilities sector for investors.
Acadia Healthcare Company, Inc. (NASDAQ: ACHC)
Acadia Healthcare Company, Inc., specializes in behavioral healthcare services, including inpatient psychiatric services, residential treatment centers, and outpatient clinics across the United States.
Based in Franklin, Tennessee, Acadia Healthcare operates a network of facilities providing comprehensive mental health and addiction treatment services. The company is known for its focus on high-quality patient care and expanding access to behavioral health services.
Acadia’s strategic growth initiatives and strong market presence could make it a valuable addition to a diversified investment portfolio. Its commitment to providing comprehensive treatment centers positions it well in the healthcare stocks market.
Surgery Partners (NASDAQ: SGRY)
Surgery Partners is a company that focuses on surgical care with operations across the United States.
It owns and operates ambulatory surgery centers through a publicly traded limited partnership.
Founded in 1997, Surgery Partners became publicly traded on the NASDAQ exchange under the ticker symbol SGRY in 2006. Its subsidiaries include Armenia Surgery Center; LA Peer Surgery Center, LLC; and PSHS Alpha Partners, Ltd.
The company has experienced significant growth over the years. Surgery Partners continues to expand its network and enhance its service offerings, positioning itself well in the healthcare sector.
This growth could potentially make it a notable option for investors looking to invest in healthcare stocks.
Pediatrix Medical Group, Inc. (NYSE: MD)
Pediatrix Medical Group, Inc., offers a range of physician services, including neonatology, anesthesia, maternal-fetal teleradiology, and pediatric cardiology.
The company’s operations are divided into six segments: neonatal and pediatric subspecialties, anesthesia, maternal-fetal medicine, pediatric cardiology, radiology, and other services.
Most of Pediatrix’s revenue comes from the neonatal segment, with significant operations in Florida, Texas, North Carolina, Georgia, and Tennessee. The company’s focus on specialized physician services positions it well in the medical stocks market.
Pediatrix’s strategic initiatives and consistent performance could make it a valuable addition to a diversified investment portfolio.
Community Health Systems, Inc. (NYSE: CYH)
Community Health Systems, Inc., operates general acute care hospitals and outpatient facilities across the United States. It provides healthcare services in both urban and non-urban markets.
In addition to general acute care, CHS offers emergency services, general and specialty surgery, internal medicine, obstetrics, diagnostics, psychiatric, and rehabilitation therapy.
The company also provides outpatient services at urgent care centers, occupational medical clinics, imaging centers, cancer centers, and ambulatory surgery centers.
Community Health Systems’ diverse service offerings and extensive network position it well in the health care facilities sector. This could potentially make it a strong candidate for investors looking to invest in healthcare stocks.
Aveanna Healthcare Holdings Inc. (NASDAQ: AVAH)
Based in Atlanta, Georgia, Aveanna Healthcare Holdings Inc. is a top provider of home healthcare services in the U.S.
They specialize in pediatric and adult home care, offering nursing, therapy, and medical social services across several states.
Aveanna’s broad reach ensures comprehensive care for patients with complex conditions. The increasing demand for home healthcare, especially among the aging population, could support Aveanna’s growth.
Best Hospital Penny Stocks
Here are some hospital and healthcare penny stocks worth your consideration if you are in the market for a low barrier of entry to investing.
JRSIS Health Care Corporation (OTCPK: JRSS)
JRSIS Health Care Corporation provides various Western and Chinese medical services, including:
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Pediatrics
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Dermatology
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Traditional Chinese medicine
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Internal medicine
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Dentistry
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General surgery
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Rehabilitation science
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Gynecology
Its subsidiaries include Harbin Jiarun Hospital Co., Ltd., and JRSIS Health Care Limited.
The company is known for its comprehensive treatment centers, combining both Western and traditional Chinese medical practices to serve the residents of Harbin.
JRSIS Health Care’s focus on diverse medical services could position it well for future growth in the healthcare sector.
DarioHealth Corp. (NASDAQ: DRIO)
DarioHealth Corp. is a digital therapeutics company based in the United States. They focus on managing chronic conditions through innovative digital health solutions.
Their offerings include diabetes management, hypertension control, and weight-loss programs, all integrated into a comprehensive digital platform.
DarioHealth provides personalized coaching, data monitoring, and user-friendly mobile applications to help patients manage their conditions effectively. This holistic approach aims to improve health outcomes and reduce healthcare costs.
The growing adoption of digital health technologies, combined with DarioHealth’s strong focus on chronic disease management, positions the company well for potential future growth in the healthcare sector.
Xtant Medical Holdings Inc. (NASDAQ: XTNT)
Xtant Medical Holdings Inc. specializes in the development and commercialization of regenerative medicine products and medical devices for orthopedic and spinal surgery.
Based in Belgrade, Montana, Xtant provides a range of products designed to support the healing and recovery of patients undergoing spinal surgery. Their product portfolio includes biologics, implants, and other medical devices that are critical in spinal and orthopedic procedures.
Xtant focuses on providing high-quality, innovative solutions to improve patient outcomes and reduce surgical complications. With a commitment to advancing medical technology and a robust product lineup, Xtant Medical could capitalize on the growing demand for spinal and orthopedic treatments.
SunLink Health Systems, Inc. (NYSEAMERICAN: SSY)
SunLink Health Systems, Inc., through its subsidiaries, owns businesses that provide healthcare services across the U.S.
The company operates in several segments, including healthcare facilities, specialty pharmacy, and durable medical equipment providers. SunLink’s emphasis on both rural and urban markets allows it to address diverse healthcare needs.
This strategic approach could potentially position the company well for steady growth in the healthcare industry.
Investors are advised to be aware of volatility when purchasing penny stocks, as with any other investment.
Should You Buy Hospital Stocks?
All data available shows an increase in demand for medical services due to aging populations and an increased awareness of health-related issues.
This change in current trends means that we may see this industry experience even more growth in the near future.
Hospitals also generate revenue by treating patient groups with chronic illnesses and providing long-term care like hospices or home healthcare.
During global health crises, they also have the opportunity to increase revenue with hospital supplies and protection services offered directly or through their subsidiaries.
In the last year, we’ve seen many stocks go down, but experts agree that hospital stocks have performed well in this economy.
This is why we are seeing an increased interest from investors who buy hospital stock.
Hospital stocks are a good choice for investors looking to find an opportunity to make money without working hard.
Hospital Stocks: Final Thoughts
Hospitals are an essential part of our economy, and the industry will continue to grow day after day.
Hospital stocks are a great option for investors in search of higher returns, especially in the current economic climate.
Hospitals have performed well during recent global health crises, and they will remain a stable investment long after such events pass.
So if your investment process incorporates looking for industries that display the potential for stable, long-term growth, we recommend considering hospital stocks.
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