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4 Low-Beta Healthcare Stocks to Beat Trump's Tariff Blues

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As expected, Wall Street came crashing down on Thursday after President Donald Trump announced his sweeping tariffs, raising the risk of a global trade war that could push the economy into recession.

All three major indexes recorded one of their worst days in years, with the S&P 500 slipping back into correction territory. Markets have been volatile since February, and the bloodbath that began early this month could continue for a longer period as fears of a recession continue to dent their sentiments.

Given this situation, it would be ideal to invest in defensive stocks such as healthcare. In this regard, Gilead Sciences, Inc. (GILD - Free Report) , Cencora, Inc. (COR - Free Report) , Fresenius Medical Care AG (FMS - Free Report) and LeMaitre Vascular, Inc. (LMAT - Free Report) are lucrative buys. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The stocks are also from the low-beta category (beta greater than 0 but less than 1). Hence, the recommended approach is to invest in low-beta stocks with a high dividend yield and a favorable Zacks Rank.

Wall Street Rattled by Trump’s Tariff Announcement

Trump’s harsh tariffs saw a bloodbath on Wall Street, with the S&P 500 declining 4.8% to record its worst day since June 2020. The Dow tumbled 1,679.39 points, or 4%, also registering its worst day since June 2020. The tech-heavy Nasdaq fell 6% to record its worst day since March 2020.

More than 400 of the S&P 500 constituents ended in negative territory, reflecting the broader market rout. The S&P 500 has now retreated 12% from its all-time high, achieved in February. Multinational companies suffered the most on Thursday, given that they are likely to be impacted the most due to their production units outside the United States.

Trump, while unveiling his tariffs, didn’t spare any United States trading partner. He imposed a 10% baseline tariff on all countries, which goes into effect on April 5. Trump also announced extra "reciprocal" tariffs on several countries the administration sees as the biggest offenders, including Japan, Israel and EU nations, starting April 9.

Recession Fears Loom

Investors were confident that the tariffs would be too harsh and the economy would avoid slipping into a recession. This came after Trump assured last week that the tariffs would be flexible, but Wednesday’s announcement came as a shock to investors, with sentiment hitting rock bottom.

Trump’s tariff strategy is designed to boost manufacturing in the United States and strengthen the industrial sector. However, this tough approach is increasing the chances of a global trade war.

Since February, markets have been struggling, with volatility persistent across the broader market. At the same time, inflation has been rising steadily and could surge even further, potentially forcing the Federal Reserve to postpone its next interest rate cut for an extended period.

4 Healthcare Stocks With Upside

Gilead Sciences

Gilead Sciences, Inc. is a pioneer in developing drugs for the treatment of human immunodeficiency virus (HIV). GILD’s broad portfolio includes drugs for liver diseases, hematology/oncology diseases and inflammation/respiratory diseases. Gilead has a strong HIV franchise with flagship treatment Biktarvy driving the growth.

Gilead Scienceshas an expected earnings growth rate of 70.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.2% over the past 60 days. GILD currently has a Zacks Rank #2. Gilead Sciences has a beta of 0.32 and a current dividend yield of 2.82%.

Cencora

Cencora, Inc. is one of the world’s largest pharmaceutical services companies, which focuses on providing drug distribution and related services to reduce healthcare costs and improve patient outcomes. COR reports through two segments — Pharmaceutical Distribution and Other.

Cencora has an expected earnings growth rate of 11.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the past 60 days. COR currently has a Zacks Rank #2. Cencora has a beta of 0.55 and a current dividend yield of 0.79%.

Fresenius Medical Care AG

Fresenius Medical Care AG is one of the largest integrated providers of products and services for individuals undergoing dialysis following chronic kidney failure. Through its network of over 3,600 dialysis clinics across the world, FMS offers dialysis services and products in more than 120 countries and employs over 109,000 staff in more than 50 countries.

Fresenius Medical Care AG has an expected earnings growth rate of 27.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 9.9% over the past 60 days. FMS presently sports a Zacks Rank #1. Fresenius Medical Care AG has a beta of 0.93 and a current dividend yield of 1.79%.

LeMaitre Vascular

LeMaitre Vascular, Inc. is a provider of devices, implants and services for the treatment of peripheral vascular disease, a condition that affects people worldwide. LMAT develops, manufactures, and markets disposable and implantable vascular devices to address the needs of vascular surgeons and interventionalists.

LeMaitre Vascular has an expected earnings growth rate of 16.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.7% over the past 60 days. LMAT presently carries a Zacks Rank #2. LeMaitre Vascular has a beta of 0.89 and a current dividend yield of 0.92%.


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