The growing demand for healthcare services amid the COVID-19 pandemic has led to substantial capital inflows to the industry. Smart healthcare and genomics are expected to become the new big thing. Given the industry’s solid growth prospects, we think fundamentally sound healthcare stocks Global Cord (CO) and IRIDEX (IRIX), which are currently trading at more than 25% below their 52-week price highs, could deliver significant returns. Let’s take a closer look at these names.Healthcare spending has increased significantly in recent years, and currently accounts for more than 17% of U.S. GDP. Nearly twice the healthcare spending of other countries is spent in America. Healthcare companies’ crucial role in helping the world fight against coronavirus has led to significant capital inflows in the industry from governments and private organizations worldwide.

The industry’s revenue increased 26.9% year-over-year and 6.7% sequentially in the second quarter of 2021. In the short term, the sector’s burgeoning healthcare technology and genomics segments will revolutionize it.

The industry’s potential for growth has been immense, and there have been significant advances in smart healthcare, as well as innovative breakthroughs. Given the industry’s vitality and its growth prospects, we think that fundamentally sound healthcare stocks Global Cord Blood Corporation (CO) and IRIDEX Corporation (IRIX), which are currently trading more than 25% below their 52-week price highs, could be good bets now. These stocks are rated ‘Strong Buy’ in our proprietary POWR Ratings system.

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