When considering long-term investments, few sectors offer as much potential as healthcare and technology. Individually, these industries are at the forefront of innovation, making them prime candidates for astute investors. However, when combined to form healthcare technology stocks, the potential for growth becomes even more significant.
For those seeking to capitalize on industry trends, healthcare ETFs such as the iShares Global Healthcare ETF (NYSEARCA: IXJ) and the iShares Genomics, Immunology, and Healthcare ETF (NYSEARCA: IDNA) provide a comprehensive exposure to the HealthTech sector. Nonetheless, taking a more proactive approach by investing in individual top-performing healthcare technology stocks could potentially yield even greater returns.
Crispr Therapeutics (CRSP)
One of the top healthcare technology stocks to consider in 2024 is Crispr Therapeutics (NASDAQ: CRSP). This company recently garnered attention after its sickle cell treatment, Casgevy, received approval from the FDA. This significant development marks the first-ever gene-editing therapy to receive FDA approval, setting the stage for revolutionary gene-editing and CRISPR tech treatments for a wide range of diseases.
Despite the groundbreaking nature of this achievement, CRSP shares experienced a decrease of nearly 15% following the announcement. The decline can be attributed to concerns about the short-term operational and financial implications of Casgevy, particularly due to its high price tag of over $2 million and a limited US market of just 100,000 affected individuals. Nevertheless, for those with a long-term investment horizon, CRSP remains a strong candidate, as the company’s technology has now been proven safe for widespread distribution.
Teladoc Health (TDOC)
Teladoc Health (NYSE: TDOC) is another prominent player in the healthcare technology sector. While the company’s stock experienced a substantial decline, dropping more than 90% from its previous highs, this does not diminish the potential of Teladoc’s model. With telehealth gaining traction, especially during the pandemic, remote physician care has become a popular alternative for many patients, with over 20% of adult patients now opting for telehealth visits.
As the national population continues to age, the demand for telemedicine is expected to increase, presenting opportunities for companies like Teladoc to expand their market share. Despite facing competition from other telemedicine-focused platforms, the potential for growth in this segment makes Teladoc a compelling choice for healthcare technology stocks in 2024.
Intuitive Surgical (ISRG)
Completing the top healthcare technology stocks is Intuitive Surgical (NASDAQ: ISRG), a leader in the use of robotics during surgical procedures. Unlike the other companies on the list, ISRG is not a speculative play but rather a stable, established giant in the healthcare technology sector. This is reflected in the company’s inclusion in the Nasdaq-100 and S&P 500.
Despite its relatively high valuation, analysts are overwhelmingly optimistic about ISRG, with the majority recommending it as a buy. Recent financial data also revealed positive trends, with significant growth in procedures using ISRG’s surgical robotics platform and substantial increases in revenue and income.
In conclusion, the healthcare technology sector presents a compelling investment opportunity for those looking towards the future. As technology continues to intersect with healthcare, innovative companies in this space have the potential to transform the industry and deliver substantial returns to investors. While healthcare ETFs offer broad exposure, the individual stocks of companies like Crispr Therapeutics, Teladoc Health, and Intuitive Surgical present an appealing option for those seeking to capitalize on the promising prospects of healthcare technology.
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