The healthcare sector experienced uneven performance in 2021. Looking ahead, Portfolio Manager Andy Acker believes discounted valuations, innovation and the waning influence of COVID-19 are creating attractive investment opportunities throughout the sector.
Key takeaways
- COVID-19 has led to swings in healthcare stock returns over the past two years but that could change as the pandemic begins to retreat.
- In COVID’s wake, we think many stocks now trade at a discount to the value of their underlying companies’ growth prospects.
- In our view, opportunities can be found throughout the sector, including in biotech where new treatment modalities are revolutionising care; in medical devices where advances in robotic surgery are improving patient outcomes; and in managed care, which is benefiting from expanded government health insurance programmes and a robust job market.