Stock leaders for 2030 in Health Tech UBS

Tippapatt The health tech subsector had a challenging past 18 months, but its core drivers are still intact, according to UBS’ Global Equity Focus List report, published on Friday. Healthcare expenditure, as a percentage of global GDP, is almost 11%, representing 5% of technology ( XLK ) spend, the report said.

“There is clearly significant catch up potential, and generative AI progress should act as another catalyst.” In addition, “rising per capita healthcare spending and constrained government budgets also suggest a role for digitalization to help reduce waste and create more efficiency.” UBS lists four leaders in health tech that provide artificial intelligence and machine learning services in drug development and diagnostics.

These are companies with access to proprietary datasets, and medical device makers that can better incorporate data analysis in their products. It is good to note that health tech stocks did underperform the tech benchmark index ( XLK ) in December. Here are UBS’ list of health tech stocks with opportunities for growth through 2030: IQVIA Holdings ( NYSE: IQV ) The company should grow its operating earnings by “at least high single digits,” analysts said.

They see modest valuation multiple expansion. McKesson Corp. ( MCK ) Things that work in its favor: generic pricing has improved, stronger outpatient utilization trends, and solid prescription volumes. Siemens Healthineers ( OTCPK:SMMNY ) 2023 results exceeded expectations, and 2024 is on track to meet expectations.

Stryker Corp. ( SYK ) Elective surgery volumes have returned to pre pandemic levels. A strong order backlog in capital equipment shows potential for earnings upgrades. More on IQVIA: IQVIA Q3: TAS Segment Remains The Problem Child IQVIA: I Would Stay Away Until Debt Issues Are Resolved IQVIA Holdings, Inc.

(IQV) Q3 2023 Earnings Call Transcript U.S. judge upholds FTC bid to block Iqvia’s DeepIntent buyout Iqvia launches notes offering, enters into new term loan agreement.