To succeed in investing over time, you don’t have to start with an enormous amount of money. Today, you can get in on plenty of promising players with less than $100.
In many cases, these shares are overlooked now but have what it takes to advance over the long term. The idea is to buy today and hang on for at least five years so that you can benefit from these companies’ growth stories and eventual share-price performance.
Where can you find these affordable stocks? Healthcare is particularly ripe with choices — from young “undiscovered” biotech companies to market giants that may have temporarily fallen off investors’ radar screens. Let’s check out the top healthcare stocks to buy with $100 right now.
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Teladoc Health (NYSE: TDOC) used to be an investor favorite during the earliest days of the pandemic, when demand for telemedicine surged. But the stock eventually lost its charm as investors worried about the company’s ability to reach profitability. And billions of dollars in non-cash goodwill impairment charges linked to the acquisition of chronic care company Livongo didn’t help.
But here’s why there’s reason to be optimistic about Teladoc today. Early last year, the telemedicine leader decided to balance its quest for revenue growth with its quest for profitability. As a result, revenue growth has slowed in recent quarters, but earnings before interest, taxes, depreciation, and amortization (EBITDA) and free cash flow have picked up. Teladoc results have met or surpassed its own forecasts, showing the company’s efforts are bearing fruit.
Meanwhile, Teladoc has launched an operational review of its business to ensure it’s maximizing efficiency and only investing in areas that will support its goal of whole-person care.
Finally, it’s important to note that even though the Livongo purchase initially weighed on Teladoc, this investment may pay off over time. That’s because chronic-care services are driving revenue growth at Teladoc. Considering that nearly half of Americans suffer from at least one chronic condition, this is a key growth area.
Today, the stock trades at about 1.3 times sales — and that puts it at nearly its lowest ever by that measure.
Intellia Therapeutics (NASDAQ: NTLA) works in the exciting field of CRISPR gene editing, or the fixing of faulty genes responsible for disease. The stock could benefit from a few things.
First, fellow gene editing company CRISPR Therapeutics recently won the world’s first approval for a product based on CRISPR gene editing. This is good news for others in the field because it shows that regulators — who are sometimes hesitant about approving a product based on a new technology — are ready to give the nod to a CRISPR-based therapy. And more good news is that Intellia and CRISPR Therapeutics aren’t direct competitors since they’re working in different treatment areas.
Next, Intellia’s very own catalysts could push the stock higher over the next couple of years. The company recently set out priorities through 2026, and they include:
completing a phase 3 study and regulatory submission for NTLA-2002
a treatment candidate for hereditary angioedema (HAE)
the completion of enrollment in a pivotal study for NTLA-2001, a candidate for transthyretin amyloidosis with cardiomyopathy (ATTR)
HAE, caused by the overproduction of inflammation peptide bradykinin, results in excessive and unpredictable swelling. ATTR, which is linked to the accumulation of a misfolded protein, hurts the heart, kidneys, and other organs.
In the meantime, Intellia will report trial data — and any positive news could boost the stock. If all goes well in the ATTR and HAE pivotal trials, Intellia may launch two products later this decade. If that happens, the stock easily could catch up to more advanced peer CRISPR Therapeutics.
Medtronic (NYSE: MDT) is a medical-device giant that’s struggled to grow earnings in recent years. But thanks to a transformation plan, it could be entering a new phase of growth. The company has streamlined operations, divested certain businesses, and ramped up investments in high-growth medtech areas such as structural heart and diabetes care.
Today, Medtronic already is a leader across medical technology markets. It has the No. 1 to No. 3 positions in high-growth areas, and No. 1 to No. 2 market-share positions in major markets including cardiac rhythm management, endoscopy, and many more.
Medtronic is present in several billion-dollar markets, such as the $14 billion diabetes market — which is growing in the double digits — and the $8 billion cardiac ablation and $6 billion structural heart markets.
Medtronic is leading the way in the artificial intelligence (AI) in healthcare market. The company has set up an AI center of excellence to cost-effectively build its platforms. It’s already using AI in several devices, including the GI Genius for endoscopy and Touch Surgery Enterprise for surgery.
The AI in healthcare market is forecast to expand at a compound annual growth rate of 47% to reach $102 billion later this decade, according to Markets and Markets. That means healthcare companies investing in it now could reap the rewards — and so could investors.
Medtronic won’t offer you the explosive growth potential of a young biotech. The medtech giant expects to deliver mid-single-digit revenue growth over the long term. But its new streamlined structure, a forward price to earnings ratio (P/E) of only 16, and a multitude of leading products make it a company and stock you can count on — and a great place to park your $100.
Should you invest $1,000 in Teladoc Health right now?
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CRISPR Therapeutics, Intellia Therapeutics, and Teladoc Health. The Motley Fool recommends Medtronic. The Motley Fool has a disclosure policy.
The Top Healthcare Stocks to Buy With $100 was originally published by The Motley Fool