All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Healthcare stocks can include companies that produce medical equipment and supplies, pharmaceuticals, as well as medical services and health technology. These have traditionally offered strong earning potential for investors. More recently, investors have been interested in the companies leading the way in the worldwide coronavirus vaccine rollout, which includes some UK companies. See how to buy health shares in the UK and compare some of the top medical and health stocks below.
How to invest in health stocks
- Choose stocks to invest in. You can check out some health stocks below and find out more about them.
- Choose an investment platform. You’ll need one that lets you invest in the stock exchange that your chosen stocks are listed on.
- Sign up and fund your account. You might need to wait for your account to be verified and for your funds to hit the account before you can begin.
- Find your chosen stock. You can search its name or ticker.
- Review and buy. It’s as easy as that!
UK health stocks
If you’re interested in health stocks that are in the UK, there are several that you can invest in, such as:
- AstraZenca
- GlaxoSmithKline
- Smith & Nephew
- Oxford Biomedica
- Synairgen
- Avacta Group
- Zomedica Pharmaceuticals
- Moderna
- Novacyt
Investing in global health stocks from the UK
We’ve listed some examples of health stocks with more information about them, and you can see an A-Z list below if you’ve got any in mind.
Astrazenca (AZN.US)
An Anglo-Swedish pharmaceutical and biotech company, AstraZeneca created and released one of the world’s most successful coronavirus vaccines in late 2020, and is one of the key pillars of the UK’s vaccination programme.
Pfizer (PFE.US)
Pfizer is an American pharmaceutical company and part of the Fortune 500 list of the largest companies in the US. Like AstraZeneca, Pfizer delivered a coronavirus vaccine that has been used extensively in the UK and US vaccine programme.
GlaxoSmithKline (GSK.LSE)
GSK is a British pharmaceutical company based in Brentford, and is one of the largest companies on the London Stock Exchange (LSE) by market capitalisation.
More than £5 trillion is spent on healthcare globally each year, and the healthcare sector represents a good opportunity for investors looking to grow their portfolio, both in terms of risk and diversification. Health stocks are also not as cyclical as other sectors, meaning they might be better insulated against wider economic downturns.
The coronavirus pandemic has further highlighted the important role of the medical and big pharma sectors, and attracted the attention of investors looking to benefit from the growing demand and focus on companies in the medical and healthcare industry.
The risks of health stocks
There are a lot of rules and regulations in the health industry, and you run the risk of the competitors of companies that you’re invested in developing vaccines or medicines first. On top of this, vaccines and medicines go through many stages of testing before they’re approved, and need to fit specific guidelines for each country that they’re created for.
Bottom line
Healthcare stocks can be rewarding, but can also have slow growth during long processes, such as while developing or testing products. You might notice these stocks grow rapidly when products are approved in certain countries or when these companies see advances in their technology or breakthroughs in research and development.
Browse all health stock guides
Zoe was a senior writer at Finder specialising in investment and banking, and during this time, she joined the Women in FinTech Powerlist 2022. She is currently a senior money writer at Be Clever With Your Cash. Zoe has a BA in English literature and a Diploma for Financial Advisers. She has several years of experience in writing about all things personal finance. Zoe has a particular love for spreadsheets, having also worked as a management accountant. In her spare time, you’ll find Zoe skating at her local ice rink. See full bio
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