As a group, health-care stocks trade at discounted valuations and make up less than 14% of the S&P 500’s market weighting. That seems unlikely to last, says Citi, given that health-care spending is 18% of the economy and growing. “[W]e expect the sector to at least come up to averages,” say the Citi analysts, “implying upside/outperformance for 2021.” AstraZeneca (ticker: AZN) is the top pharma pick of Citi analyst Andrew Baum. Complementing the strong sales of Astra’s cancer drug Tagrisso are the rising sales of its cancer treatments Imfinzi and Calquence. Other building blockbusters include the diabetes treatment Farxiga. Baum thinks the stock could rise by one-third from its recent price of $49.