VAR - Healthcare And Biotechnology Dashboard - Update
This article series provides a monthly dashboard of industries in each sector of the GICS classification. It compares valuation and quality factors relative to their historical averages.
Executive summary
Despite the recent rally, biotechnology is still significantly underpriced relative to historical averages. However, profitability is far below the historical baseline. Pharmaceuticals look close to fair price, but like in biotech the profitability is bad. Other healthcare industries are overpriced. Healthcare equipment is the worst one combining all metrics. Life science tools/services is the only healthcare industry showing a profitability above its historical average.
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