Telegram
Upgrading Healthcare Rating to Overweight from Neutral

The omnipresent headlines about the deadly coronavirus underlines the importance of good, reliable healthcare in the modern world. For many other fundamental reasons it’s time for investors to take another look at the lagging U.S. healthcare sector. Thanks to a perspective drop in the sector’s equity risk premium (ERP), reduced federal regulatory risk and a potential sentiment reset, I upgrade the sector to an Overweight rating from Neutral (my stance since Dec. 2015). I’ll list 14 sector ideas for potential investment.

The past five years haven’t been kind to this sector, which has underperformed the Standard & Poor’s 500 index (SPX) by 1,710 basis points (+46% vs 63% for SPX). The combined headwinds of political backlash in Washington, D.C., extended valuations (for a time) and overly optimistic sentiment offset the sector’s fairly strong top-line and EPS growth.

You are trying to access FSI member-only content.
You need to have an active FSI Macro, or FSI Pro subcription in order to read this article.
If you are already a member at FSInsight, please Sign In here. If you don’t have a subscription to FSInsight yet, you can sign up below.

Choose one of our yearly plans to save nearly 20%

We accept crypto via BitPay for yearly subscriptions.
    • Macro
      FSI Macro
      from
      $
      199
      /mo
      billed anually
      Get access to all the macro research on FSInsight
      • Tom Lee's Live Market BLASTs
      • View from Tom Lee
      • Signal From Noise
      • Portfolio Strategy
      • Technical Analysis
      • Granny Shots – Stock Ideas
      • US Policy
      • Live Conference Calls with Q&A
      First Month Free!
    • Crypto
      FSI Digital Assets
      from
      $
      99
      /mo
      billed anually
      Get access to all the crypto research on FSInsight
      • Tom Lee's Live Crypto BLASTs
      • Tom's Take on Crypto
      • Crypto Weekly Newsletter
      • BitDigest Daily Newsletter
      • Crypto Technical Analysis
      • Benchmark Indices Review
      • Bitcoin Valuation & Misery Indexes
      • Live Conference Calls with Q&A
      First Month Free!
    • Macro + Crypto
      FSI Pro
      from
      $
      249
      /mo
      billed anually
      Get access to all the exclusive research on FSInsight
      • Looking at code?
      • I am hidden!
      • FSI Macro
      • +
      • FSI Digital Assets
      • Designed by
      • HANGAR115
      • -
      First Month Free!
Disclosures (show)

Want to receive Regular Market Updates to your Inbox?

I am your default error :)