Healthcare and Profitability in 2021 – Ways to Invest?

Given the coronavirus’s human and socio-economic cost, it seems strange to talk about the pandemic in the same breath as investment options and generate a profit.

However, it cannot be denied that the healthcare sector has become one of the most attractive from an investment perspective throughout the Covid-19 pandemic.

This is borne out particularly by hospital operator shares’ performance, which soared in November in line with rising case numbers and growing expectations that infections could be dealt with much better during the second spike.

But how can you successfully invest in healthcare in 2021, and what are the best stocks to consider within this space?

Healthcare in the UK – An Overview

While it’s hard to quantify the true size of the UK’s healthcare market, there’s no doubt that the private sector continues to grow at an accelerated rate.

More specifically, the UK’s private healthcare market had an estimated worth of $11.8 billion back in 2017, while it remains on course to achieve a compound annual growth rate (CAGR) of 2.6% through 2023.

As a result of this, the private healthcare market on these shores will be worth $13.8 billion in three years, with this likely to be further empowered by rising NHS waiting times and increased referrals to the private sector.

Clearly, private healthcare is one of the fastest-growing and most lucrative niches within the market as a whole, but others continue to expand at an impressive rate.

For example, take healthcare support, which refers to the management and administration of various healthcare organisations and the technologies that underpin these endeavours.

This particular trend is borne out by the rise of CVS Health Corp. stocks, which now boast a total market capitalisation of $91 billion. This entity is an integrated pharmacy healthcare provider that operates diseases management programs, while it also offers services such as pharmacy benefit management and retail sales.

Individual Stocks or Portfolio Investment – Which is Best in 2021?

The next step is to determine precisely how you invest in the healthcare sector, as you can primarily choose to commit your capital through either a portfolio or individual stocks.

The former may be particularly appealing in 2021, especially when you appraise options such as Downing’s managed institutional portfolio.

This entity has been investing wisely in the healthcare sector since 1997, while this type of vehicle also enables you to diversify your interests and access various asset classes immediately.

You can also focus on a broad range of healthcare stocks across several different niches, including the care home sector, specialist private care organisations and educational shares.

If you instead choose to invest in individual healthcare stocks, it’s important to identify the existing trends and the current impact Covid-19 has on the marketplace.

For investors with a short-term outlook, options such as Retractable Technologies may offer particular value, as they operate as a medical device company that’s currently contributing heavily to the global rollout of the coronavirus vaccine.

More specifically, the firm sells syringes on an international scale, which led to sharing price growth of nearly 602% in 2020 (compared to 132% during the previous year).

This trend is set to continue throughout 2021, with the vaccination rollout likely to be in place for at least the next 12 months globally.