Healthcare sector facing challenges, but stocks like Bioventus, Amicus Therapeutics, Rigel, Ensign expected to grow

From Zacks Investment Research: 2025-04-17 09:38:00

The U.S. healthcare sector faces challenges with policy shifts, financial pressures, and evolving consumer expectations. While AI is being integrated into healthcare, the biotech sector struggles due to policy uncertainties under the Trump administration. Healthcare lagged the S&P 500, growing just 2.5% in 2024. Stocks like Bioventus, Amicus Therapeutics, Rigel Pharmaceuticals, and Ensign Group are expected to grow. Despite federal health agency cuts affecting the biotech industry, total U.S. healthcare spending has tripled from $1.4 trillion in 2000 to $4.9 trillion in 2023, with growth in areas like telehealth and biotechnology.

Investors eye the healthcare sector for long-term changes, including AI integration and steady cash flow. Stocks like Bioventus, Amicus Therapeutics, Rigel Pharmaceuticals, and Ensign Group, with Zacks Rank #1 or #2 and VGM Scores of A or B, are promising. Bioventus has an expected earnings growth rate of 34.7%, Amicus Therapeutics 116.7%, Rigel Pharmaceuticals 20.2%, and Ensign Group 13.5%. These companies show improvements in their current-year earnings estimates, making them favorable investments.



Read more at Zacks Investment Research: 4 Healthcare Stocks to Buy as the Sector Faces Government Heat – April 17, 2025