Investors should buy healthcare stocks as they are too cheap to ignore, DataTrek says | Markets Insider

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Investors should buy healthcare stocks as they are too cheap to ignore, DataTrek says

A trader reacts as he works on the floor of the New York Stock Exchange in New York, U.S., March 18, 2020.US healthcare stocks should be bought by investors as the sector is too cheap to ignore, DataTrek Research said in a note on Wednesday.

Risks do exist in the sector, like regulatory changes in 2021 and more failures in the race for a COVID-19 vaccine, but those downside scenarios seem to already be discounted based off of current valuations, according to DataTrek.Investors should take advantage of the current discount in healthcare stocks and buy them, DataTrek Research said in a note on Wednesday.have room to run. Healthcare stocks currently make up 13.

While the healthcare sector's allocation weight in the S&P 500 has been falling, its earnings power has outpaced the S&P 500 as a whole over the last five and 10 years, according to DataTrek. And so far in October, the sector has lagged the S&P 500 by almost 2 percentage points in terms of performance.

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