Healthcare stocks ready for new growth

19 Oct 2023

Janus Henderson: Healthcare stocks ready for new growth

Although healthcare has lagged the equity market so far in 2023, the sector’s long-term outlook appears stronger than ever, say Portfolio Managers Andy Acker and Dan Lyons.

Key takeaways:

  • Healthcare’s defensive stocks have fallen out of favor with investors this year, but that could change as higher interest rates continue to work through the economy, potentially slowing growth.
  • With healthcare priced below the market average, attractive valuations could boost the sector’s long-term return potential.
  • Defense is not the only thing on offer. Innovation is also accelerating and could drive mergers and acquisitions in the near term and growth for years to come.

IMPORTANT INFORMATION

Health care industries are subject to government regulation and reimbursement rates, as well as government approval of products and services, which could have a significant effect on price and availability, and can be significantly affected by rapid obsolescence and patent expirations.

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.

Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

The information in this article does not qualify as an investment recommendation.

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