Health concerns around coronavirus variants linger and investors seek shelter in more defensive sectors. Many stocks on IBD's Global Leaders screen are in health care. Today, we look at some of the top global health care stocks to watch.
GSL The Leading Health Care Stock
London-based pharmaceutical company GSK is the leader in IBD's Medical-Diversified industry group, which is ranked 23rd out of 197 industries. GSK — previously known as GlaxoSmithKline — also boasts a top IBD Composite Rating of 99.
This outperformance has been in part thanks to GSK announcing positive results in a late-stage study on a new Covid-19 vaccine. The new vaccine is targeted to combat the omicron variant. In a partnership with Sanofi, results showed the vaccine prevented 72% of symptomatic infections of omicron. With continued variants evading prior vaccine immunity, it appears as if booster shots, like seasonal flu shots, may become the norm.
On the news, GSK shares rose 2.2% Friday. The stock is currently trading in a double-bottom pattern with a 45.24 buy point.
Top Stock AstraZeneca Projects Hot Growth
British-Swedish pharmaceutical company AstraZeneca is currently the runner-up in IBD's Medical-Diversified group in terms of Composite Rating.
High growth is expected to continue for the company. After reporting earnings of $2.49 a share last year, analysts expect EPS to increase to $3.34 in 2022 and $3.90 in 2023.
Shares of AstraZeneca are also forming a double bottom base. This one has a 67.50 buy point identified by MarketSmith pattern recognition.
Other Global Health Care Stocks Showing Strength
Ireland-based Alkermes is showing strength as it trades in an undefined pattern with a 32.89 buy point. The company also ranks sixth out of 800 stocks in IBD's biotech industry group. Alkermes develops drugs to combat central nervous system diseases. The company has seen strength as prospects look bright for its new drug, Lybalvi, which is used to treat bipolar disorders.
Last quarter, the drug brought in $14 million of the company's $72.5 million in sales. However, for the year Alkermes expects $75 million in sales of Lybalvi alone.
Danish health care company Novo Nordisk is another stock to watch as it consolidates in a base pattern. The company can be viewed as a defensive health care stock because it is a provider of insulin for patients with diabetes.
Strong growth is also expected. After reporting earnings of $3.17 per share in 2021, EPS is projected to increase to $3.40 this year and then jump to $4.10 in 2023, according to MarketSmith.
