Will Tariffs Trigger Healthcare Industry Shift?

Wednesday 9th of April 2025 19:00:00

Will Trump Tariffs Make or Break Healthcare Space? 3 Stocks to Rely On

The ongoing trade tensions between the US and China have led to a surge in tariffs, impacting various industries, including the healthcare sector. While some healthcare companies may struggle to maintain their profit margins, others may thrive in this environment. Here are three healthcare stocks that are well-positioned to weather the storm and potentially benefit from the tariffs.

  1. UnitedHealth Group (UNH): As the largest health insurer in the US, UnitedHealth Group is well-equipped to navigate the tariff environment. The company's diversified business model, which includes health insurance, pharmacy benefits management, and healthcare services, makes it less vulnerable to trade-related disruptions.

  2. CVS Health (CVS): CVS Health is another healthcare company that is likely to benefit from the tariffs. The company's pharmacy benefit management (PBM) business, which is a significant contributor to its revenue, is less affected by trade tensions. Additionally, CVS's retail pharmacy business and its growing healthcare services segment are well-positioned to continue growing.

  3. Cardinal Health (CAH): Cardinal Health is a leading provider of pharmaceutical and medical products. The company's diversified business model, which includes pharmaceutical distribution, medical products, and healthcare services, makes it less susceptible to trade-related disruptions. Additionally, Cardinal Health's strong relationships with pharmaceutical companies and its ability to adapt to changing market conditions make it a reliable choice for investors.

While the tariffs may create challenges for some healthcare companies, these three stocks are well-positioned to thrive in this environment. UnitedHealth Group's diversified business model, CVS Health's pharmacy benefit management business, and Cardinal Health's strong relationships with pharmaceutical companies make them attractive options for investors looking to weather the storm.