Three healthcare stocks on deep discount

These stocks are each trading at over a 30% discount to our fair value estimates

Vikram Barhat 19 June, 2019 | 2:55AM

Healthcare

The healthcare sector is suffering a dramatic a reversal of fortunes. It went from being one of the best performing sectors last year to the second worst performing so far this year, ahead of energy. The sector’s subpar performance is evidenced by a modest 6% gains for the Morningstar US Healthcare index relative to a far more robust 16% returns for both the Morningstar US Market index and the S&P 500 benchmark index, as of June 13.

The current swoon in healthcare stocks, however, doesn’t detract from the positive long-term outlook for the sector supported by secular trends. Aging demographic, higher incidents of critical illness, rapid advances in digital healthcare are expected to continue to propel healthcare demand and costs. In fact, global healthcare expenditures are projected to continue to mount at an annual rate of 5.4% between 2017 and 2022, going from US$7.724 trillion to US$10.059 trillion, according to a Deloitte report.

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About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.