A famous proverb that could not be truer when it comes to how deeply the health care industry has been affected by the COVID-19 coronavirus pandemic.
Earlier this week, Stockhouse Editorial gave a quick “check-up” on how this wide market is faring under the pressures of COVID. There is a lot more to say about health and the fields it covers; it is not just about medicine, there are tech advancements, but so much more.
One area seeing significant growth is the health and wellness sector, which analysts at research firm Technavio predict will register a Compound Annual Growth Rate (CAGR) of around 6% from 2020 to 2024. An industry already worth more than $4.2 trillion just over a year ago, investors are already looking to take full advantage of this growing market, which encompasses the complete state of wellbeing throughout the body, spirit, and mind.
Elements that capitalize on this market include personal care / beauty, nutrition, weight management, fitness, as well as preventive / personalized medicine.
But as the old infomercials would say … “Wait! There’s more ….”
Just think about the last time you went into a store, a gym, any business for that matter. What is the first thing you are likely asked to do? Sanitize your hands. Multiple times a day we are compelled to apply sanitizer and much like toilet paper manufacturers a few months ago were inadvertently cashing in on that bizarre craze, this one is far more applicable.
The analyst team at UNIV Datos reported earlier this month that the global hand sanitizer market is projected to grow at a CAGR of 9% from 2021 to 2026. What this means is, that last year, this relatively niche product was valued at just over $2.6 million (USD), but is expected to reach $15.3 million by the end of this year.
A major player in this field is 3M (NYSE: MMM). A household name, this multinational conglomerate is well-known for its research and development laboratory and leverages its science and technology across multiple product categories, which includes hand sanitizer.
Other notable companies in this space:
Ecolab Inc. (NYSE: ECL) – This producer of sanitation products targets the health, hospitality, and industrial markets and also offers products and services that includes dish and laundry washing systems, pest control, and infection control products.
Henkel AG & Co. (ETR: HEN3) – The makers of Dial body products, this manufacturer of household and personal products also producers Persil and Purex laundry detergent, Schwarzkopf hair care, and Loctite adhesive.
ITC Ltd. (NYSE: ITC) – This one is a bit of a wide play, with a channel for personal care products, it also touches upon cigarettes and other consumer goods, paper, packaging, and agri-business.
Next time you reach for that clear liquid to cleanse the palm of your hands, just remember that the company behind it is reaping some sizable benefits right now. The share price for these four companies is quite high across the board, but for good reason. Safe bets are popular for that very reason but here’s one you might not have heard of … EastWest Bioscience (TSX-V: EAST).
This health and wellness company operates within the hemp and CBD consumer health market and back in the spring had received approval from Health Canada for its hand sanitizer liquid spray. Shares in this Penticton, BC-based operation are much more reasonable and provide a smaller barrier for entry.
Do you consider intense market conditions, such as COVID, justification for spending a bit more on a company’s share price when making an investment decision? Let us know in the comments below.
To learn about some of the most-talked about Healthcare stocks on Stockhouse, check out the Healthcare Bullboards.
For more of the latest info on Healthcare stocks, check out the Healthcare Trending News hub on Stockhouse.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets climbed to their best week of the year.
“It’s been almost a complete opposite or retracement of what we saw last week,” said Philip Petursson, chief investment strategist at IG Wealth Management.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
While last week saw a “healthy” pullback on weaker economic data, this week investors appeared to be buying the dip and hoping the central bank “comes to the rescue,” said Petursson.
Next week, the U.S. Federal Reserve is widely expected to cut its key interest rate for the first time in several years after it significantly hiked it to fight inflation.
But the magnitude of that first cut has been the subject of debate, and the market appears split on whether the cut will be a quarter of a percentage point or a larger half-point reduction.
Petursson thinks it’s clear the smaller cut is coming. Economic data recently hasn’t been great, but it hasn’t been that bad either, he said — and inflation may have come down significantly, but it’s not defeated just yet.
“I think they’re going to be very steady,” he said, with one small cut at each of their three decisions scheduled for the rest of 2024, and more into 2025.
“I don’t think there’s a sense of urgency on the part of the Fed that they have to do something immediately.
A larger cut could also send the wrong message to the markets, added Petursson: that the Fed made a mistake in waiting this long to cut, or that it’s seeing concerning signs in the economy.
It would also be “counter to what they’ve signaled,” he said.
More important than the cut — other than the new tone it sets — will be what Fed chair Jerome Powell has to say, according to Petursson.
“That’s going to be more important than the size of the cut itself,” he said.
In Canada, where the central bank has already cut three times, Petursson expects two more before the year is through.
“Here, the labour situation is worse than what we see in the United States,” he said.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
