U.S. Healthcare Spending Just Hit $5.7 Trillion and Continues to Grow: 2 Stocks to Buy to Profit From the Trend
Good medical care will always be in high demand, which makes some healthcare stocks strong long-term picks.
Overview
Americans continue to spend more on healthcare. Last year, the sector reached $5.7 trillion, according to some estimates, up 7.3% from 2024. Several factors drove this surge, including higher consumption of medical products and services. Further, the sector should continue expanding over the long run, driven by breakthroughs and an aging population. Investing in companies that can ride this tailwind may be a good way to earn superior returns over the long run. Here are two excellent stocks to consider along those lines: Eli Lilly (NYSE: LLY) and Intuitive Surgical (NASDAQ: ISRG).
Image source: The Motley Fool.
Not all corners of the healthcare industry will grow at the same rate. Some should expand much faster than others. The GLP-1 drug market is one area that is currently on fire and is projected to maintain a strong momentum well into the next decade. Eli Lilly is the leader in this niche. The company's GLP-1 medicines, including the diabetes treatment Mounjaro, as well as Zepbound and Foundayo, two weight-loss drugs, are posting strong sales. Eli Lilly has been growing its revenue and earnings much faster than similarly sized peers over the past two years, thanks to its dominance in this field.
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Originally published at www.fool.com.