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Healthcare Stocks: The Buying Opportunity of the Year?
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(4:10) - Changes In Healthcare: Are Hospitals taking the biggest hit?
(7:21) - What's driving the Healthcare Expansion?
(8:16) - Kevin Dives Into Biotech: The Future of Medicine
(9:30) - *Investing Ideas*
(12:20) - Uncertainty for the Insurance Providers
(15:10) - *Investing Ideas*
(16:30) - Job Growth in Healthcare sector
(18:00) - *Investing Ideas*
(20:00) - Stock Ticker Summary
Welcome to Episode #69 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by Kevin Cook, Zacks Senior Strategist and Editor of Zacks TAZR portfolio service.TAZR is the service which combines technical analysis with the Zacks Rank.
Healthcare stocks have been on fire since the Great Recession. The sector, as a whole, has outperformed the major indexes in that time.
But it seems like the sector topped out in June and July of 2015. Since then, the stocks have pulled back.
In 2016, the largest healthcare ETF, the Health Care SPDR ETF (XLV - Free Report) , declined for the first time since 2008. Similarly, the popular iShares NASDAQ Biotechnology ETF (IBB - Free Report) , peaked in July 2015, up over 400%, and has fallen since then. The IBB is down 9% over the past 2 years.
Kevin and Tracey discuss what’s happening in the healthcare sector today that is rattling the stocks, including the possible repeal and replacement of Obamacare, more federal regulation of drug prices, and the possible de-regulation of the FDA which would, presumably, push drugs to the market faster.
These uncertainties are creating buying opportunities in some areas.
4 Healthcare Areas Investors Should Be Watching
1. The hospital stocks have gotten hit on worries about the repeal of Obamacare. The panic is that if people lose their health insurance, the burden would again fall on hospitals to provide medical services through their emergency rooms etc. Two of Kevin’s favorites are HCA Holding (HCA) and Acadia (ACHC - Free Report) .
2. The insurers are also in the firing line of uncertainty regarding Obamacare. But there could be an opportunity in this group. Tracey still likes Aetna and UnitedHealth Group (UNH).
3. What about the generic drug makers? Will they be hurt by possible checks on prices? It’s still tough going for Perrigo (PRGO), Mylan (MYL) and Teva (TEVA). What do Tracey and Kevin think of the drug companies?
4. With biotech stocks, you either love them or you hate them. But should you be investing in them? Kevin takes you through his reasoning on why he still believes in the sector and why some of the big caps like Gilead (GILD - Free Report) and Amgen are looking like an opportunity.
Kevin believes that growth still remains in the healthcare sector. The Baby Boomers, one of the largest generations, are finally retiring. At the same time, people are living longer. That means more demands, not less, on the health care sector.
What else should you know about the healthcare sector in 2017? Should you just be buying the indexes?
Find out the answers to this and more on this week’s podcast.
Zacks' Best Investment Ideas for Long-Term Profit
Today you can gain access to long-term trades with double and triple-digit profit potential rarely available to the public. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more.
Image: Bigstock
Healthcare Stocks: The Buying Opportunity of the Year?
Welcome to Episode #69 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by Kevin Cook, Zacks Senior Strategist and Editor of Zacks TAZR portfolio service.TAZR is the service which combines technical analysis with the Zacks Rank.
Healthcare stocks have been on fire since the Great Recession. The sector, as a whole, has outperformed the major indexes in that time.
But it seems like the sector topped out in June and July of 2015. Since then, the stocks have pulled back.
In 2016, the largest healthcare ETF, the Health Care SPDR ETF (XLV - Free Report) , declined for the first time since 2008. Similarly, the popular iShares NASDAQ Biotechnology ETF (IBB - Free Report) , peaked in July 2015, up over 400%, and has fallen since then. The IBB is down 9% over the past 2 years.
Kevin and Tracey discuss what’s happening in the healthcare sector today that is rattling the stocks, including the possible repeal and replacement of Obamacare, more federal regulation of drug prices, and the possible de-regulation of the FDA which would, presumably, push drugs to the market faster.
These uncertainties are creating buying opportunities in some areas.
4 Healthcare Areas Investors Should Be Watching
1. The hospital stocks have gotten hit on worries about the repeal of Obamacare. The panic is that if people lose their health insurance, the burden would again fall on hospitals to provide medical services through their emergency rooms etc. Two of Kevin’s favorites are HCA Holding (HCA) and Acadia (ACHC - Free Report) .
2. The insurers are also in the firing line of uncertainty regarding Obamacare. But there could be an opportunity in this group. Tracey still likes Aetna and UnitedHealth Group (UNH).
3. What about the generic drug makers? Will they be hurt by possible checks on prices? It’s still tough going for Perrigo (PRGO), Mylan (MYL) and Teva (TEVA). What do Tracey and Kevin think of the drug companies?
4. With biotech stocks, you either love them or you hate them. But should you be investing in them? Kevin takes you through his reasoning on why he still believes in the sector and why some of the big caps like Gilead (GILD - Free Report) and Amgen are looking like an opportunity.
Kevin believes that growth still remains in the healthcare sector. The Baby Boomers, one of the largest generations, are finally retiring. At the same time, people are living longer. That means more demands, not less, on the health care sector.
What else should you know about the healthcare sector in 2017? Should you just be buying the indexes?
Find out the answers to this and more on this week’s podcast.
Zacks' Best Investment Ideas for Long-Term Profit
Today you can gain access to long-term trades with double and triple-digit profit potential rarely available to the public. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more.
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