When you think of healthcare stocks, you may think of steady growth and security. That's true in many instances. But healthcare players -- even some with that steady growth and security -- can also offer you a good deal of growth. And this may help you along the path to wealth.
A solid healthcare portfolio should include safe stocks you can count on, and depending on your comfort with risk, a few names with high-growth potential. If you hold on over time, these players could add significant value to your portfolio. Let's check out three healthcare companies that fit the bill.
1. Vertex Pharmaceuticals
We'll start out with one of the safest players, Vertex Pharmaceuticals (VRTX -0.76%). This biotech giant brings in billions of dollars annually in revenue and profit thanks to its cystic fibrosis (CF) treatments. It's the market leader worldwide, and predicts this will continue well into the next decade.
In fact, if all goes well, Vertex may launch a new CF treatment in the not-too-distant future. The company is studying a candidate in phase 3 trials.
At the same time, Vertex is expanding into other areas -- and could become a champion there too. The company recently completed regulatory submissions for exa-cel, a treatment for the blood disorders beta thalassemia and sickle cell disease. This potential product could become a blockbuster. Vertex also has compelling candidates in other high-need areas, including type 1 diabetes and pain management.
So right now is a great time to get in on Vertex, and benefit from what could be a whole new era of growth.
2. Teladoc Health
Teladoc Health (TDOC -2.91%) is a leader in telemedicine. Before the pandemic, during the earliest days of the crisis, and in recent times, Teladoc has grown revenue and visits -- by double and triple digits.
The big problem has been reaching profitability. And billion-dollar charges last year for noncash goodwill impairment -- linked to an acquisition -- didn't help matters.
The good news: Teladoc is now working on balancing its growth and its efforts to post a profit. Earlier this year the company cut jobs and office space. And, Teladoc said in its most recent earnings call, its focus now is on efficiency.
Teladoc has proven it can win over customers. It serves more than half of Fortune 500 companies. It's seeing membership rising -- and it's also reporting growth in the number of users who sign up independently for its mental health services.
Today, shares of Teladoc represent a real opportunity for investors: They're trading at around their lowest price-to-sales ratio ever. So if you can handle a bit of risk, now is the time to get in on the story.
TDOC PS Ratio data by YCharts.
3. InMode
InMode (INMD -1.96%) sells radio-frequency-based devices for a variety of aesthetics and women's health procedures. The global noninvasive aesthetics treatment market is set to rise by double digits throughout this decade -- and InMode already is benefiting.
The company has seen revenue and profit take off over the past five years:
INMD Net Income (Annual) data by YCharts.
Last year, the company reported record revenue, non-GAAP net income, and non-GAAP diluted earnings per share. It's also reached an annual revenue run rate of almost $500 million.
InMode recently gave investors a sneak peek at potential first-quarter figures. And here, the company predicts at least a 23% gain in revenue from the year-earlier period. InMode also predicts gross margin of at least 83% -- around the same level it's maintained for some time.
The company also continues to innovate and test its devices for new uses across other treatment areas. So there's reason to be optimistic about its growth.
Today, InMode shares trade for about 14 times forward earnings estimates. This looks like a bargain for a company that, thanks to its growth prospects, could help you make a fortune over time.
