- A recent shift in sentiment is increasing valuations of health-care stocks.
- As wealth creation in emerging markets continues to develop, these geographies offer attractive areas of growth for Big Pharma firms and other health-care industries.
- Subsectors of consumer and animal health-care look attractive.
Shifting Sentiment Supports Recent Health-Care Rally
Although relatively late to the upswing in the stock market, health-care stocks have recently posted solid gains. With macroeconomic health-care trends improving and uncertainty over health-care reform-related costs subsiding, we believe the investment community has gained increased confidence in the health-care sector. Furthermore, as uncertainty with the overall market's outlook increasing, the defensive nature of health care is also appealing to investors. Even with the recent health-care rally, we continue to think there are attractive investment opportunities across a number of industries in health care.
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Damien Conover does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.