1 Industry Set to Explode in 2021 and Beyond

This industry may have had a strong 2020 in some areas, but definitely not in others. So, Motley Fool investors can still buy for cheap today!

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Motley Fool investors might think that the healthcare industry already had its hay day. In fact, almost the exact opposite is true. While certain areas of the healthcare industry thrived during the pandemic, others completely sunk. I’m going to look at healthcare companies that did well in the pandemic and that should continue doing well in the future. But I’m also going to take a look at other healthcare stocks that were all but ignored and are due for an insane boost.

Pandemic-fueled stocks

There were a few areas of healthcare that rose during the pandemic. Healthcare stocks involved with the treatment of COVID-19, patient care, and ownership of healthcare properties all seemed to do well. Of course, it’s fairly obvious that if there was a company creating a vaccine, investment was enormous. But the other two areas were a bit harder to decipher.

Two healthcare stocks that did incredibly well were WELL Health Technologies (TSX:WELL) and NorthWest Healthcare (TSX:NWH.UN). You may have heard of the former but perhaps not the latter.

WELL Health stock is a telehealth company that saw revenue soar during the pandemic. Shares are up 500% since the market crash back in March 2020. Even now, shares of WELL Health stock continue to climb as telehealth seems to be the future of patient care! So, Motley Fool investors may still consider WELL Health stock.

Then there’s NorthWest, which seized the opportunity of increased revenue of essential services. Recently, it’s been on a bit of a spending spree, adding an Australian healthcare REIT to its portfolio. It’s one of the best healthcare stocks if you want stable, growing revenue, along with a substantial dividend yield of 6.16% as of writing. And still a steal with a P/E ratio of 9.23 right now.

The forgotten few

But among healthcare stocks, those in research and innovations in other areas beyond COVID-19 became worthless overnight. Yet these are the perfect places for Motley Fool investors to look today. In fact, major companies that created the COVID-19 vaccine are already investing in these stocks, seeing the economic rebound beyond the pandemic.

Two I would consider today are Trillium Therapeutics (TSX:TRIL)(NASDAQ:TRIL) and Aurinia Pharmaceuticals (TSX:AUP)(NASDAQ:AUPH). The former recently made headlines with Pfizer acquiring the cancer-treatment company for US$2.26 billion. Shares went gangbusters overnight, up 188% on Monday morning from the news. So, before the deal goes through, investors may be able to make some killer cash in the next while.

Then there’s Aurinia, with analysts expecting this healthcare stock to more than double in the next year. This is because of the company’s oral therapy treatment for lupus nephritis. It’s already seeing revenue climb, as the therapy becomes shared around the world. As deals continue to roll in, it’s very likely Aurinia will see shares rebound completely in the next year. Shares are down 5% since January but jumped 15% in the last month since earnings. And it’s up even higher after reporting it would be making two major acquisitions for a new revenue pipeline.

Bottom line

Motley Fool investors shouldn’t count out healthcare stocks quite yet. While some may slow down in the economic recovery, others are just getting started. I would consider all four stocks to be strong long-term holds for any portfolio.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe owns shares of Aurinia Pharmaceuticals Inc, NORTHWEST HEALTHCARE PPTYS REIT UNITS, and WELL Health Technologies Corp. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.

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