Don’t Buy Merck… Buy this “Trifecta” Stock Instead

by Andrew Zatlin

Cold and flu season is here.

But for every cough, sneeze, and sniffle, there’s a healthcare stock on the rise.

Here are some stocks to keep your portfolio healthy… even if you aren’t.

For a transcript of this video, see below. This transcript has been lightly edited for length and clarity.

Don’t Buy Merck… Buy this “Trifecta” Stock Instead

Healthcare is an amazing investment sector.

No matter what’s happening with the markets or economy, people need healthcare.

Furthermore, the isolation we’ve faced the past few years has weakened our immune systems. We weren’t exposed to the common cold or flu! And now that we’re back in the world, we’re catching germs left and right — it’s cold and flu season times ten!

This is bad news for anyone hoping to stay healthy during the holidays. But it’s great news for healthcare companies…

Healthcare Companies are Hiring

Payroll data from this sector is already hitting record levels. Take a look:

So far in 2022, the healthcare sector has added more jobs than in any full year in the past decade. And we’ve still got a few months of the year to go.

A boost in hiring means an industry poised for growth…

It also means investors like us need to jump in!

But where should we invest? After all, healthcare is a massive industry. And not every company in this sector is sitting pretty.

To identify the most promising opportunities, I use hiring data.

Let me show you…

Three Promising Stocks

Here’s recent hiring data for Baxter (NYSE: BAX). Baxter makes products that treat kidney disease and other chronic medical conditions:

Look at its hiring — up and to the right.

It’s the same deal with Gilead Sciences (Nasdaq: GILD):

And Quest Diagnostics (NYSE: DGX):

These companies are reporting strong hiring, and some of them are also producing solid dividends.

Gilead’s dividends add up to more than four percent. And Baxter’s are at three percent. At a time when the overall stock market is struggling, these payouts can provide some welcomed cash in your pocket.

Focus on the Ones with Upside

But not every healthcare stock is a “buy” right now. For example:

Here’s a recent chart from big pharma company Merck (NYSE: MRK):

This company’s hiring is up. But so is its stock price! In my opinion, much of its potential upside is already baked in.

Now compare that to Quest:

This one’s taken a dive recently, but now it’s starting to creep back up. (Maybe people are looking at my hiring data, eh?)

This stock has plenty of room to run!

An Investment Trifecta

Bottom line: the right healthcare stocks can offer an investment trifecta:

  • Recession-proof demand.
  • Strong dividends.
  • Plenty of room for growth.

Are you a “Pro” subscriber? If so, check out my #1 healthcare stock to scoop up now.

In the meantime, Zatlin out.

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In it to win it,
Andrew Zatlin
Andrew Zatlin
Moneyball Economics