• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

Apple Healthcare Could Be a Healthy Investment Story

CEO Tim Cook is touting the nascent segment as Apple's true legacy.
By KEVIN CURRAN Jan 09, 2019 | 04:00 PM EST
Stocks quotes in this article: AAPL

Apple Inc.'s (AAPL) push into healthcare might not be getting the attention it deserves from the market.

Shares of the phone manufacturer and services company are rallying nicely again on Wednesday, building the stock to an almost 3% rebound to kick off 2019.

The solid day of trading comes directly after Tim Cook's conversation with Jim Cramer on Mad Money, wherein the Apple CEO highlighted the company's health and wellness efforts.

"We've gotten into healthcare more and more through the Watch and through other things that we've created with ResearchKit and CareKit and putting your medical records on the iPhone, this is a huge deal," Cook commented. "Apple's most-important contribution to mankind has been in health."

The comments follow the company's hiring of numerous physicians across disciplines late in 2018, signaling the company's interest in expanding its nascent EKG and heart rhythm monitor efforts even further to address overall health.

The hiring of doctors and experts could work to assuage concerns from the medical industry over the possible unintended consequence of hypochondriac consumers burdening cardiology units.

An expansion could mean big dollar signs, as the multi-billion-dollar market size for cardiac rhythm and medical device market alone could seriously bolster Apple's bottom line.

"Increasing incidences of cardiac disorders and rise in older population are significantly impacting the growth of the interventional cardiology market," a report from BIS research notes. "As a result, several conglomerate companies are making strenuous efforts by innovating new products or redesigning existing devices to attain better process efficiency."

Contributing to this market with heart monitors that are not only accurate, but also more fashionable than existing monitors, Apple could see its watch sales soar among baby boomers.

"The timing of Apple's push into healthcare really matches up nicely with the aging baby boomer generation, which is a massive generation and is now entering the stage in their lives where 24/7 heart monitors and fall detection are a real consideration," Action Alerts Plus research analyst Zev Fima told Real Money. "People are worried about the spending drop-off that could occur as this generation ages, however, this is one area where we could see a real ramp in spending simply because its fast becoming a necessity in their daily lives."

He argued that the stock is simply not getting enough credit for the company's push into this profitable industry and demographic.

Apple is currently the largest weighting in the Action Alerts portfolio apart from cash, marking a nearly 100% return from when the portfolio added that position.

The stock is currently rated a "2" for the portfolio, denoting the Jim Cramer-managed portfolio would buy the stock on a pullback.

To follow the team and find out exactly when they buy and sell the stock, click here.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

Jim Cramer and the AAP team hold a position in Apple for their Action Alerts PLUS Charitable Trust Portfolio . Want to be alerted before Cramer buys or sells AAPL? Learn more now.

TAGS: Investing | Stocks | World | Software & Services | Technology | Technology Hardware & Equipment | United States | Analyst Actions | U.S. Equity | Stock of the Day

More from Stocks

The Chasing Slows on Wall Street

James "Rev Shark" DePorre
Mar 24, 2023 4:34 PM EDT

After Deutsche Bank shakes up investors, market cools a bit, which might be a healthy development.

Stay Away From These Types of Stocks, They're Radioactive

Jim Collins
Mar 24, 2023 2:35 PM EDT

Here's what you're better off buying. I certainly have.

GE Looks Poised for a Pullback: How to Trade It Now

Bruce Kamich
Mar 24, 2023 1:45 PM EDT

The shares stopped short of my price targets.

It's Not Whether the Next Shoe Will Drop, But Where and When

Bret Jensen
Mar 24, 2023 11:30 AM EDT

A few months of anxiety likely lies ahead of us, and caution remains the watchword of the day.

The Good, Bad and Ugly: What's Happening and What Investors Need to Do

Stephen Guilfoyle
Mar 24, 2023 10:45 AM EDT

Right now I have more in cash, or equivalents, than in equities. Ever hear of a Wall Street guy saying that before?

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 01:56 PM EDT PETER TCHIR

    Very Cautious

    I am very cautious here. I don't like how the c...
  • 08:58 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    How to Adjust Your Trading Style as Market Conditi...
  • 05:00 PM EDT CHRIS VERSACE

    AAP Podcast on the Fed Decision!

    Listen here!
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login