As the baby boomer generation continues to get older, the need for healthcare will skyrocket. When you add in other generations like Gen Z and the Millennials that also will require healthcare, the sky is the limit for healthcare stocks. NextGen Healthcare, Inc. (NASDAQ:NXGN), McKesson Corporation (NYSE:MCK), and West Pharmaceutical Services, Inc. (NYSE:WST) are three certainly worth a look.The healthcare sector came to renewed prominence during the height of the pandemic, but even after society headed back to normalcy, healthcare in almost every form is in high demand. We have an aging baby boomer population that will continue to require more and more medication, hospital stays, and other types of services.
Generation X is also aging, and the Millennials are at a point in their life when they also need to start making sure they're staying healthy. All this leads to continued growth in healthcare stocks. But which stocks should investors consider now? I would advise taking a diversified approach and looking for top companies in industries beyond just pharmaceuticals and biotech.
I did just that and ran a search for some of the top-rated healthcare stocks in our POWR Ratings database. NextGen Healthcare, Inc. (NXGN), McKesson Corporation (MCK), and West Pharmaceutical Services, Inc. (WST) are certainly worth adding to your watchlist.