Published on 6 Aug 2022 on Insider Monkey via Yahoo Finance

10 Best Medical Stocks Under $10

In this article, we will discuss the 10 best medical stocks under $10. To skip our detailed analysis of the healthcare sector, go directly to the 5 Best Medical Stocks Under $10.

According to the Centers for Medicare and Medicaid Services, U.S spending on national healthcare touched $4.1 trillion in 2020, which amounts to an expenditure of $12,530 per person. The total level of U.S healthcare spending is predicted to increase to $6.2 trillion by 2028. Furthermore, Deloitte estimates that spending levels will rise to $8.3 trillion by the end of 2040. The adoption of new health-focused technologies by organizations is a significant contributor to these high levels of spending in the healthcare sector. In 2020, U.S healthcare organizations and facilities were estimated to have spent $11.36 billion on cloud-based technologies, reflecting an increase of 33% from 2019. Healthcare providers are backing innovation that supports crucial monitoring, early diagnosis, and illness prevention by capitalizing on the rise in individuals who want to take a more active role in managing their own health.

EBITDA for the healthcare sector increased by 5% between 2017 and 2019 but declined in 2020 and 2021. McKinsey projects post-COVID-19 growth to be 6% between 2021 and 2025. An additional profit of $31 billion might be generated by the sector during this period if it expands at the predicted growth rate. However, the projections do not take into account the possible effects of macroeconomic challenges, such as prolonged inflation. In case the rise in inflation continues at the current rates, profits might decrease by over $70 billion.