3 Healthcare Stocks to Sell in July Before They Crash & Burn

Group 1: Healthcare Sector Outlook - The outlook for many healthcare stocks is positive, partly due to large investors avoiding the sector, believing it will yield poor returns as long as interest rates remain high [1] Group 2: Walgreens Boots Alliance (WBA) - Walgreens is facing tough competition from large retail chains like Walmart and Target, and increased use of direct mail prescription services has negatively impacted its earnings, which fell to 63 cents per share from 99 cents year-over-year [3] - Analysts predict Walgreens' earnings per share will decline to $2.79 in 2025 from $3.98 in 2023 [4] - The company has significant challenges, including high settlements related to the opioid crisis, resulting in a debt of $33.66 billion and only $711 million in cash as of the end of Q1 [10] - Increased shoplifting and inflation have further hurt Walgreens' financial results, making consumers less willing to pay high prices compared to competitors [19] Group 3: Cassava Sciences (SAVA) - Cassava's only major drug candidate, simufilam, is under scrutiny after Professor Hoau-Yan Wang was indicted for allegedly falsifying data, which could jeopardize the drug's Phase 3 trials [5][11] - If the FDA finds that Cassava knowingly submitted false data, it could lead to severe consequences for the company and a significant drop in its stock price [6][11] - Cassava has been accused of manipulating clinical trial results, raising concerns about the drug's efficacy [12][22] Group 4: Moderna (MRNA) - Moderna's revenue from its Covid-19 vaccine dropped significantly by two-thirds to $6.7 billion last year, as public concern about the virus decreased [14] - Analysts expect Moderna's revenue to decline to $3.85 billion this year from $6.85 billion in 2023 [15] - Moderna's RSV vaccine efficacy is reported at 50% after 18 months, which is less impressive compared to GSK's vaccine that was approved earlier [24]