![]() Cooper said the combined healthcare spend in the United States, for example, is about 17 per cent of GDP and growing at over four per cent per year, while the drugs and goods and services provided by the sector are not considered products and services that can be deferred to the future during economic downturns. First, Cooper points to the fact that healthcare is a recession-proof space with an aging demographic in its favour. Worse has been the S&P Biotech SPDR ETF ( S&P Biotech ETF Stock Quote, Charts, News, Analysts, Financials NYSE:XBI), which has more speculative names in its basket and is now down 40 per cent from its 52-week high.īut the relatively poor overall performance for the space should be coming to an end, Cooper argues, as there are prevailing factors in its favour. But the sector has broadly done well over the past year, with the Health Care Selective Sector SPDR Fund ( Health Care Selective Sector SPDR Fund Stock Quote, Charts, News, Analysts, Financials NYSE:XLV), an ETF which broadly tracks the sector as a whole, down three per cent from its 52-week high while the S&P 500 is off about ten per cent. It’s been tough for some healthcare stocks of late, with investors turning away from the more speculative areas of the market amid broader economic and geopolitical uncertainties. Analyst Doug Cooper argues in a Tuesday report on the sector that not only is Healthcare due for a turnaround based on demographic realities, some names remain well below historical averages despite continued strong growth profiles. A number of Healthcare stocks have taken it on the chin over the past year and while investors may still be cagey about jumping into the sector, Beacon Securities says stocks have hit bottom.
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