What do you need to know about investing in healthcare stocks?

Here’s what you need to know about investing in healthcare stocks. The healthcare sector is so broad that there are several different kinds of healthcare stocks. Four of the most important types are: Drug stocks: Drugmakers focus on developing drugs that treat or prevent diseases.

What are the best healthcare stocks?

Furthermore, over the span of the last six recessions, earnings within the industry have experienced an average growth of 21%. Some of the best healthcare stocks in the industry include UnitedHealth Group Incorporated (NYSE: UNH ), Johnson & Johnson (NYSE: JNJ ), and Horizon Therapeutics Public Limited Company (NASDAQ: HZNP ).

What is a healthcare provider stock?

Healthcare provider stocks: Healthcare providers stand at the front lines, delivering healthcare services to patients. They include hospitals, physician practices, home health companies, and long-term care facilities. Strong companies can be found within each type of healthcare stock.

Can you buy healthcare stocks if you have a 401(k)?

Retirement investors can buy healthcare stocks in tax-advantaged retirement plans, like individual retirement accounts ( IRAs ). But if you have a 401 (k), you’ll likely instead have to look into mutual funds that focus on the healthcare industry, rather than individual stocks.