2 Artificial intelligence (AI) in healthcare stocks to buy and hold for long-term potential

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Artificial intelligence (AI) has caught the eye of investors for its potential to transform many industries, and the health care sector may have the greatest impact. That’s because the technology could solve the No. 1 problem in drug development, the time it takes to bring a candidate from the drawing board to commercialization. And that can result in better drugs and medical devices, leading to better patient outcomes.

All of this means leading companies can see their earnings grow over time. On top of that, according to Markets and Markets Research, the AI ​​in healthcare market is expected to reach $148 billion by 2029 with a compound annual growth rate of 48 percent, meaning we’re just the beginning of this exciting story. I am. Ready to get the smartest players skin? Then consider these two AIs in healthcare stocks for their long-term buy-and-hold potential.

Image source: Getty Images.

1. Modern

Moderna (NASDAQ: MRNA ) The shares took off early in the pandemic when the company commercialized its coronavirus vaccine and made billions of dollars. These days, demand for the vaccine is declining, and although the product is still likely to generate recurring revenue during fall vaccination seasons, it’s not poised to return to the levels we’ve seen in the past. have seen That has investors worried about the biotech’s future prospects.

But there is reason to be optimistic about this innovative company. Not only does Moderna have many late-stage candidates in the pipeline, it is also prioritizing AI. The company has already used the technology in the vaccine development process, speeding up some key steps for researchers. And announced the deal with him last year. International Business Machine Using the company’s technology to supercharge your research.

For example, it is using IBM’s foundation model MolFormer to predict the properties of molecules, with the idea of ​​developing better mRNA drugs more quickly. This is positive because it can result in products getting to market faster, offering Moderna new revenue streams.

And Moderna is applying AI across the company to increase efficiency and effectiveness. Chief Executive Officer Stephen Bensel said at an investor event last year that the company will “embrace this new technology in everything we do at Moderna.”

So, Moderna’s stock may be in the doldrums now, but over time it could not only recover, but even grow, as AI helps the company reach its goals.

2. Medtronic

Medtronic (NYSE: MDT ) is a major medical device company, selling products in markets including diabetes, cardiovascular, medical surgical, and neuroscience. The company maintains an ongoing flow of new revenue opportunities thanks to a deep pipeline — and helped secure nearly 130 product approvals in key geographies over the past year.

The medical device giant has grown earnings over time, but today, it’s entering a whole new phase of growth, with efforts to streamline its business and increase efficiency and its initial foray into AI in the healthcare market. through.

Medtronic has already received approval for five AI products, from the GI Genius intelligent endoscopy system to the MiniMed 780G system for diabetes management. This and Medtronic’s other AI-powered products have what leads to better patient outcomes, and in some cases helps surgeons maximize their performance. And that means these products can be increasingly sought after by patients and hospitals over time.

Medtronic has established an AI Center of Excellence to accelerate AI innovation across the company — and this early AI player says the technology also holds the key to personalized medicine, the healthcare can be a game changer in the field of

So, there’s reason to believe that Medtronic, a profitable company with a strong long-term track record, could emerge as a leader in the AI ​​race. And that’s why the stock is prime to buy — at today’s estimated price of 15 times forward earnings — and hold for the long haul.

Should you invest $1,000 in Moderna now?

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Adria Cimino has no position in any stocks. The Motley Fool International recommends Business Machines, Medtronic and Moderna. The Motley Fool has a Disclosure Policy.

2 artificial intelligence (AI) in healthcare stocks to buy and hold for long-term potential was originally published by The Motley Fool.

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