For institutional investors in Norway

Despite sell-off, healthcare fundamentals appear strong

Like the broader equity market, healthcare stocks experienced bouts of volatility during the third quarter. But attractive valuations, continued innovation and an uptick in merger and acquisitions could help lift the sector, says Portfolio Manager Andy Acker.


Key takeaways:

  • Like the broader equity market, healthcare stocks experienced volatility during the third quarter, though for sector-specific reasons.
  • In particular, a sharp pullback in small- and mid-cap biotech stocks that started in February continued through mid-August.
  • However, low valuations and continued innovation have led to an uptick in mergers and acquisitions, which could help support the sector. In addition, other headwinds could prove transitory.

 

 

Glossary

Price-to-earnings (P/E) ratio – measures share price compared to earnings per share for a stock or stocks in a portfolio.

Volatility – The rate and extent at which the price of a portfolio, security or index, moves up and down. If the price swings up and down with large movements, it has high volatility.

Andy Acker, CFA

Andy Acker, CFA

Global Life Sciences | Portfolio Manager


4 Nov 2021

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.

 

Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

 

The information in this article does not qualify as an investment recommendation.

 

Marketing Communication.

 

Glossary

 

 

 

Andy Acker, CFA

Andy Acker, CFA

Global Life Sciences | Portfolio Manager


4 Nov 2021