In the U.S., the Affordable Care Act (ACA) has succeeded in reducing the uninsured rate, but it has still left millions without access to affordable health care. As a result, the demand for high-quality and affordable health care services remains high. With this in mind, we’ll look at some of the best value stocks to buy in the healthcare services sector if you’re bullish on this industry and want to invest in it for growth potential. This article lists the top healthcare services stocks to buy now and why you should consider them before others.
National HealthCare (NHC)
National HealthCare (NHC) is a business process outsourcing company that provides healthcare services and related technology solutions to healthcare payers, providers, and government agencies.NHC has been able to generate high revenue through acquisitions, a company protected by a wide moat. Last year, NHC acquired the healthcare business of UnitedHealth Group Inc. for $4.9 billion, strengthening its position in the market. This acquisition will allow NHC to expand its services and further scale up its operations.NHC has a strong balance sheet and will likely repurchase its shares shortly. The company is also expanding into new markets to create long-term growth.NHC has been growing its earnings quickly due to its strong market position, and it’s likely to continue doing so.
DaVita (DVA)
DaVita (DVA) is a leader in providing dialysis services to patients suffering from chronic kidney failure.DVA is a highly profitable company that generates healthy cash flows from its operations, and it has consistently increased its return on equity over the past years. The company has been able to expand its services to new locations and will likely continue doing so in the future.DaVita has a strong balance sheet, and the company will probably repurchase its shares shortly to reduce its share count.DaVita is expanding into new markets to create long-term growth. The company has been able to boost its earnings over the past years and is expected to generate substantial profits in the future too.
AmerisourceBergen (ABC)
AmerisourceBergen (ABC) is a healthcare services company that provides pharmaceutical and medical device fulfillment services.ABC has increased its revenue by expanding its operations to new locations. As a result, the company has been able to generate strong cash flows from its operations, and it’s likely to continue doing so in the future.ABC has a strong balance sheet, and the company will likely repurchase its shares shortly to reduce its share count.ABC has boosted its earnings consistently over the past years, and it’s expected to continue doing so. The company is also investing in new growth avenues to create long-term value for its shareholders.
Alignment Healthcare (ALHC)
Alignment Healthcare (ALHC) provides post-acute care services such as physical and occupational therapy.ALHC has increased its revenue by expanding its operations to new locations and will likely continue doing so. The company has a strong balance sheet and is likely to repurchase its shares shortly to reduce its share count.ALHC has been able to generate strong cash flows from its operations in recent years, and it’s expected to continue doing so. In addition, ALHC has been able to expand its services to new locations to generate long-term growth. As a result, the company has been able to boost its earnings consistently over the past years, and it’s expected to do so in the future too.
Bottom Line
Healthcare services stocks will likely perform well as the industry continues to grow. Some of the stocks mentioned above are good value stocks that you can invest in for capital appreciation or dividend income in the future.
Read More: Best HealthCare Providers & Services Stocks to Buy in 2022