The healthcare industry has been in investors’ crosshairs since the onset of the COVID-19 pandemic last year, thanks to its role in helping the world fight the virus. Moreover, massive investment in the industry for the discovery and manufacture of viable therapies for several critical diseases should keep its momentum going. Given the industry’s growth prospects, Wall Street analysts expect the low-priced stocks of budding companies 22nd Century (NASDAQ:XXII), UpHealth (UPH), and Talkspace (TALK) to rally by more than 35% in the near term. So, let’s discuss these names.The discovery of COVID-19 vaccines and drugs, the development of integrated medical diagnostic devices and solutions, virtual consultations, and treatments and therapies for other critical diseases have all helped the healthcare industry grow significantly and garner investor attention. This is evidenced by the Health Care Select Sector SPDR ETF’s (XLV) 20.3% returns over the past year.
Furthermore, while the historically high inflation and ongoing volatility in the broader market could lead to loss of value by many large-cap stocks, the inelastic demand for healthcare products and services should help shares of many industry participants perform steadily.
Given this backdrop, Wall Street analysts are optimistic about the upside potential of budding low-priced stocks in this space—22nd Century Group, Inc. (XXII), UpHealth, Inc. (UPH), and Talkspace, Inc. (TALK). These stocks are expected to rally in price by more than 35% in the near term.