Showing: 1 - 2 of 2 RESULTS

Investors eye discounted U.S. healthcare sector as Biden’s lead in polls grows

By Lewis Krauskopf



FILE PHOTO: Pharmaceutical tablets and capsules are arranged on a table in this picture illustration taken in Ljubljana


© Reuters/Srdjan Zivulovic
FILE PHOTO: Pharmaceutical tablets and capsules are arranged on a table in this picture illustration taken in Ljubljana

NEW YORK (Reuters) – Investors are looking for bargains among healthcare stocks, even as prospect of a Democratic “Blue Sweep” in next month’s elections threatens more volatility for a sector already trading near a historical discount to the broader market.

Loading...

Load Error

A victory by former Vice President Joe Biden over President Donald Trump on Nov. 3 and a potential Democratic takeover of the Senate could clear the way for prescription drug price and healthcare coverage reforms, generally seen as potential negatives for companies in the sector.

Some investors are betting these factors have already been priced into healthcare shares or may not be as detrimental as feared, while the companies stand to benefit from relatively stable earnings prospects and their medical innovations.

“For high-quality companies that are trading at reasonable valuations … there is a strong argument to be made for adding some healthcare exposure to portfolios,” said James Ragan, director of wealth management research at D.A. Davidson.

Biden’s improving election prospects have weighed on healthcare stocks for much of 2020, according to investors, with the S&P 500 healthcare sector <.spxhc> climbing just 7% since the end of April, against a 17% gain for the overall S&P 500 <.spx>.

A Reuters/Ipsos poll on Sunday showed Biden opened his widest lead in a month after Trump contracted COVID-19.

The healthcare sector now trades at a 26% discount to the S&P 500 on a price-to-earnings basis, according to Refinitiv Datastream. The sector’s 15.8 P/E ratio is well below the S&P 500’s 21.3 ratio, which last month rose to its highest valuation since 2000.

The gap between the sector’s P/E ratio and that of the S&P stood at its widest in at least 25 years last month, though it has narrowed in recent weeks.

“As Biden started to do better in the polls, you saw healthcare start to underperform a bit as the rest of the market recovered,” said Ashtyn Evans, a healthcare analyst with Edward Jones.

While Biden may shake up insurance coverage by offering a “public option” government plan, he is also expected to seek to strengthen the Affordable Care Act – the signature healthcare law enacted when he was vice president – under which companies are used to operating.

Any significant drug pricing legislation may need to wait until the pandemic is more contained, as the government relies on the pharmaceutical industry to develop COVID-19 therapies and vaccines. Trump has also vowed to lower drug prices, making the issue arguably less partisan.

“We think there remains a reasonably good probability that the next Congress will institute moderate health policy changes that will create long-term clarity for the sector and investors,” Eric Potoker, an analyst at UBS Global Wealth Management, said in a note last month.

Healthcare stocks have been prone to volatility around elections.

Ahead of the 2016 vote, which pitted Trump against former Secretary of

Enjoyable Random Polls!

Many men are avid followers of nude sunbathing, taking pains to ensure correct penis health by conserving the organ coated in a great, efficient sunscreen. • A trained and healthy coronary heart works extra efficiently than one that’s out of situation. Since globalization of the health trade is presently in course of, physicians from around the world are taking part in medical missions” to much less developed international locations to administer medical care.

With out schooling, Hawaii will proceed to achieve weight by consuming unhealthy meals (like a plate lunch). Nevertheless, it ranked forty four out of 51 for access showing that the state is likely one of the worst in offering access to mental health care (Nguyen).

On the identical time there is a nice demand on having EHRs easily accessible for health care suppliers. To fulfill the expectations of the Native Individuals, health care workers want to know and integrate into therapy and procedures the beliefs of the patients’ tribes.

There are some healthy points for males that make sex after the age of 60 troublesome which can be extra on the psychological degree than anything. As you possibly can see the heart performs an important function and as it is a muscle of the body it’s important to keep training it to keep it healthy.

Truly, it’s the ache and anxiety that make it troublesome for sufferers to get the right amount of sleep. One authorities statute that effects affected person healthcare is the Anti-Kickback Statute. It’s fun, there’s nice camaraderie among the many Seniors, and you don’t need a associate, and it is a straightforward solution to stay healthy, both mentally and bodily.…