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
Biotechnology is underpriced by 25% to 50% relative to historical averages in 3 valuation ratios, but profitability is below the historical baseline. Pharmaceuticals also look good in valuation and very bad in profitability metric. Other healthcare industries are overpriced. Healthcare equipment is the worst one combining all metrics. Life science tools/services is the only healthcare industry above its profitability baseline, which may partly justify overvaluation.
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