Drugmakers, Managed-Care Firms Undervalued
We expect a coronavirus vaccine to be released within the next six months.
Morningstar's US Healthcare Index has increased 16% over the trailing 12 months as global concerns about the coronavirus continue to ease. Additionally, the returns have exceeded the broader equity market gain of about 10%. The generally solid underlying fundamentals of the healthcare sector are likely helping support the returns. Also, with the U.S. elections approaching, we expect heightened investor attention on potential U.S. healthcare policies. However, we don’t expect any major changes regarding reform, partly because both presidential candidates have moderate stances toward healthcare.
Damien Conover does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.