Healthcare sector underperforming, but expected to grow with technological advancements and aging population

From Nasdaq: 2025-02-24 08:11:00

Healthcare stocks have been underperforming the S&P 500, growing just 2.5% in 2024 compared to the index’s 23.3% jump. However, the sector has seen technological advancements in areas like telehealth, surgery, data analytics, and biotechnology. Stocks like WGS, THC, RIGL, and ENSG are expected to grow in the coming months.

The recent underperformance in healthcare was due to fears surrounding Robert F. Kennedy Jr.’s nomination. However, during the confirmation hearing, he supported HIV treatment and prevention drugs, distancing himself from anti-vaccine sentiments. The aging population and epidemics like obesity have also contributed to the sector’s growth.

The healthcare sector is set for long-term changes with the integration of AI in medical research. Pharmaceutical companies offer steady dividends, making them attractive for investors seeking cash flow. Despite current challenges, investing in the sector may prove beneficial in the long run.

Top healthcare stocks like WGS, THC, RIGL, and ENSG have strong buy ratings and VGM scores of A or B. These companies show promising growth rates and improvements in earnings estimates, making them favorable options for investors looking to capitalize on the sector’s potential.



Read more at Nasdaq: 4 Healthcare Stocks to Buy as the Sector Stages a Comeback