Drugmakers and Managed-Care Firms Still Look Undervalued
Healthcare sector index versus market index - source: Morningstar Nevertheless, returns have slightly lagged the 58% gain in the broader equity market. Overall, the fundamentals of the healthcare sector are solid, and we expect earnings growth to accelerate for several healthcare industries affected by pandemic restrictions, especially in elective procedures. On U.S. healthcare policy, we don’t expect any major changes, even with Democrats in control of Congress and the White House. We think more moderate changes that target insuring more people and easing some of the patient costs around s...