The healthcare industry’s relatively inelastic demand and its crucial role in fighting the COVID-19 pandemic will likely make it a popular choice for investors seeking to hedge their portfolios against a possible market correction. Given genomics’ and technology-based healthcare products’ explosive growth potential, Wall Street analysts expect Invitae (NYSE:NVTA) and OPKO Health (OPK) to deliver tremendous upside in the near term. Read on.The healthcare industry is again in the headlines amid surging Delta coronavirus infections nationwide. Consequently, healthcare stocks are gaining momentum amid rising market volatility and the increasing possibility of a market correction. This is evident in the Health Care Select Sector SPDR Fund’s (XLV) 3.2% gains over the past month versus the broader SPDR S&P 500 Trust ETF’s (SPY) 0.9% returns.
The dominant role played by the healthcare industry in the global health crisis has propelled capital inflows from governments and private organizations. Also, the disruptive progress in the field of genomics and diagnostic testing achieved by leveraging technology is expected to revolutionize healthcare. In this regard, investor and founder of the world’s largest actively traded ETF company, Cathie Wood, said in a recent CNBC interview, “DNA sequencing is going to introduce science into healthcare decision making for the first time…We’re going to be able to cure diseases that we never thought it would be possible to cure, including cancer.”
Wall Street analysts expect the healthcare industry to emerge as one of the best performers in the coming months, given the innovative breakthroughs made so far and its boundless growth potential. As investors rotate toward the healthcare industry to hedge against market volatility, analysts expect Invitae Corporation (NVTA) and OPKO Health, Inc. (OPK) to rally more than 40% in the near term.