Healthcare Business

5 Top Health Care Stocks to Buy Now on the Goldman Sachs Conviction List

Incyte focuses on the discovery, development and commercialization of proprietary therapeutics in oncology. It offers Jakafi for the treatment of myelofibrosis and polycythemia vera cancers. The company’s commercial products also include baricitinib for rheumatoid arthritis, which was approved last June by the FDA.

Many on Wall Street are bullish on Incyte’s rich pipeline of small molecule therapies in all stages of development, and they see the company as a key player in the cancer space. First-quarter results were strong, with Jakafi and additional revenue streams providing a high valuation floor, and the late-stage dermatology program provides a significant near-term growth opportunity.

The $125 Goldman Sachs price target is well above the $95.33 consensus target. Incyte stock ended last week at $95.92.

Regeneron Pharmaceuticals

This is a top biotech play for aggressive accounts to consider. Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) is a biopharmaceutical company focused on the development of therapeutic human antibodies for the treatment of eye disorders, hypercholesterolemia, cancer, inflammation and other diseases.

Regeneron’s product sales are driven principally by its VEGF inhibitor Eylea, which is approved for use in wet age-related macular degeneration and diabetic macular edema, and by Praluent for the treatment of hypercholesterolemia.

First-quarter results were better than expected on both the top and bottom lines. Many analysts are still digesting account changes. The 2020 guidance provided on expenses was generally in line with Wall Street expectations.

Goldman Sachs has set a massive $700 price target. The consensus target is $531.50. Regeneron stock closed most recently at $563.40.

Vertex Pharmaceuticals

This is another potential takeover target. Vertex Pharmaceuticals Inc. (NASDAQ: VRTX) engages in discovering, developing, manufacturing and commercializing small molecule drugs for patients with serious diseases in specialty markets. The company focuses on developing and commercializing therapies for the treatment of cystic fibrosis (CF) and hepatitis C.

The company markets Trikafta, Symdeko/Symkevi, Orkambi and Kalydeco to treat patients with CF who have specific mutations in their CF transmembrane conductance regulator gene. It is also developing VX-814, which is in Phase 2 clinical trial, and VX-864, which is in Phase 1 clinical trial for the treatment of alpha-1 antitrypsin deficiency; VX-147 for treating kidney diseases; and CTX001, which is in Phase 1/2 clinical trial for the treatment of beta-thalassemia and sickle cell diseases.

First-quarter earnings per share came in better than expected, and the bottom line skyrocketed 124.5% year over year to $1.52 billion. CF product sales soared 77% year over year, driven by the rapid uptake of Trikafta, a triple combination regimen, in the United States and the recent reimbursement approvals for Orkambi and Symkevi in the international markets.

The $290 price target that Goldman Sachs has on Vertex Pharmaceuticals stock compares with the $283.91 consensus target and the most recent close at $271.63.

These are five of the best health care stocks, and all are on the Goldman Sachs Conviction List. Given the surge in the market, and the prices of some of these stocks, it makes sense to scale buy into a position, as it is very possible we could see some consolidation after a big run-up from the March lows.