This health stock rises

Why is the health care industry a great place to find investments now?

There are major reasons for the tree. First, spending on health care in the United States is rapidly growing. The industry is already more than 17 % of the economy, and it is expected to expand by 5.8 % annually on average until 2033, when it should represent more than five economies.

Second, the healthcare industry is widely resistant to stagnation, or at least stagnation resistance. Historically, this sector had done well during stagnation, as people needed health care And finding ways to pay for it even when the economy is contracting.

The third reason is the population composition. American society is gray. It is expected that the number of Americans will increase 65 or greater than 62 million in 2024 to 84 million within three decades, and the number of centenary – those hundred or larger – is expected to link the number of one hundred or larger – quadruple during this time frame. It is not a secret that people generally need more health care as they age.

So, what is the good way for the investor to take advantage of these trends and participate in the expansion that is unavoidable in this industry? There are many ways, including investment in drug manufacturers, Medical hardware makersHealth insurance companies, and care providers, among other health companies.

One of the health companies has operations that extend many of these sectors. In fact, you may have visited one of its positions last month. It has about 9600 stores in all fifty states in addition to the province of Colombia and Puerto Rico, and 85 % of Americans live 10 miles from one.

I am talking about it CVS Health (NYSE: CVS). CVS is much more than the pharmacy chain. It provides health care services such as laboratory tests, health checks, vaccines, and simple injuries in their clinics inside the store. More than 40,000 doctors, pharmacists, nurses and nurses are employed to enable these services.

The AETNA Health Insurance Company, which it obtained in 2018, also covers 36 million people, is the fifth largest health insurance company in the country.

Oh, Pharmacy: CVS Health has a share of 27 % of pharmaceutical recipes at the country level.

Currently, CVS shoots all cylinders. The company released the results of the second quarter on July 31, and the profits and revenues won the Wall Street estimates. The company also increased its instructions for the entire year profits for the stock from a group of 6.00 dollars to $ 6.20 to a range from 6.30 dollars to $ 6.40. The report sent the arrow sharply higher, and 18 % rose in August.