Health-care stocks fell sharply last week, notching their worst weekly performance of the year, but a rebound may be at hand.
"Because this latest move was largely caused by political hot air and not something structural within the sector, I think we could see a bounce back in some of these names," Thrasher said in a note to clients."I believe the stocks have been over-extended to the downside." Worries increased after UnitedHealth CEO David Wichmann warned Tuesday that such policies would"destabilize the nation's health system." That comment sent UnitedHealth shares down 4% and the health-care sector down 2%.
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