The 'consumerization of healthcare' is a $600 billion opportunity for these stocks, UBS says

Published Thu, Jun 25 202012:00 PM EDT

(This story is for CNBC Pro subscribers only). The "consumerization of healthcare" will continue to grow after the pandemic, and it could benefit both high-tech companies and stodgy retailers, according to a new report from UBS. The bank defined defined the trend as "individuals asserting more influence and control over their medical & wellness care." The trend is being driven by technological progress as well as an aging population and rising health care costs, according to the report. UBS estimated he total addressable market for the industry at roughly $600 billion and still growing faster than the overall economy. In addition to obvious names like Teladoc , companies from a variety of backgrounds are poised to benefit from this shift, according to the note. UBS' favorite stocks for this trend include a mix of tech giants, retailers and smaller health focused companies. Retailers in particular could benefit as more of the health business moves away from traditional locations like hospitals. The note listed Walmart as a company that is expanding upon the basic health offerings previously seen at retailers. "One example of this is Walmart, which recently opened its first two Health Centers in Georgia. These clinics go beyond what's traditionally been offered in retail settings, offering a number of services including primary care, dental, counseling, labs & x-rays, health screening, optometry, hearing, fitness & nutrition, and health insurance education & enrollment," the note said. UBS has a buy rating on the stock, which has held up better than the broader market this year but has missed out on the most recent stretch of the rally. Several tech giants, which have been some of the best performing stocks during the pandemic, could see the consumer-focused health changes drive growth in the coming years, the note said. One of these is software giant Salesforce . "We think Healthcare could contribute 10-20% of Salesforce's revenue long-term, as Healthcare providers pivot to viewing patients as customers, and invest accordingly in Customer Relationship Management software," the note said. Data privacy could be another area where tech companies could benefit in this shift, and UBS said Apple 's existing trust with consumers could be a competitive advantage. A more traditional health company well-positioned for this shift is Danaher , according to the note, because the its products can be used outside of the hospital setting. "Rapid point of care testing provided at retail clinics could drive increased volumes for DHR's Cepheid Diagnostic unit (though historically the platform has been used at more centralized locations)," the note said. The stock has already gained more than 13% year to date.

Shoppers wait in line at the pharmacy of a Walmart store in Charlotte, North Carolina.

Callaghan O'Hare | Bloomberg | Getty Images

(This story is for CNBC Pro subscribers only).

The "consumerization of healthcare" will continue to grow after the pandemic, and it could benefit both high-tech companies and stodgy retailers, according to a new report from UBS.

The bank defined defined the trend as "individuals asserting more influence and control over their medical & wellness care." The trend is being driven by technological progress as well as an aging population and rising health care costs, according to the report.

UBS estimated he total addressable market for the industry at roughly $600 billion and still growing faster than the overall economy. In addition to obvious names like Teladoc, companies from a variety of backgrounds are poised to benefit from this shift, according to the note.