RSPH - Seeking Stocks With Vitality In The Volatile Healthcare Sector
2025-02-25 11:06:00 ET
Summary
- Investors cooled to the healthcare sector in 2024, which dramatically trailed global and US equity markets for the year.
- any investors are now asking: how will the policy changes under a new US administration affect healthcare companies?
- Even as the healthcare sector’s price/earnings valuations have fallen, earnings estimates have trended significantly higher.
- we think active equity investors can still find healthcare companies with strong growth potential - and at historically compelling prices.
By Vinay Thapar, CFA
Healthcare Stock Valuations Are Compelling, Given Strong Fundamentals
Historical analysis and forecasts do not guarantee future results. P/E ratio: price-to earnings ratio; EPS: earnings per share *Both forward P/E ratio and forward EPS estimates use blended 12-month forward estimates for the MSCI World Health Care Index. Left display as of January 31, 2025; right display as of February 21, 2025. Source: Bloomberg, MSCI and AllianceBernstein ((AB))