Without question, the healthcare sector has been one of the worst performing sectors in the market since last summer. While the underlying fundamentals are little changed, political uncertainty has cast a shadow over the sector and led to deep losses for some of the biggest players.
The primary reason so many healthcare stocks have taken a beating is the ongoing discussion around prescription drug costs, and overall healthcare costs in general.
While healthcare stocks will always be a topic of discussion, the talk heats up ahead of any presidential election, which is what has occurred over recent months.
There are always a handful of talking points that candidates on both side of the aisle emphasize, and healthcare is one such topic, simply because it touches everyone, rich and poor.
One only needs to take a quick glance at the following chart on the healthcare exchange-traded fund Health Care Select Sector SPDR ETF (XLV). You can clearly see the selling pressure that hit the sector starting last summer, but you can also see where there overall sector has started to recover.
Chart courtesy of www.stockcharts.com
Now that sentiment has started to turn, it may be a good time to get back into some healthcare stocks while valuations are still low.
Let’s take a look at a handful of healthcare stocks that look like good buy candidates at this time.