The COVID-19 pandemic has accelerated the pace of the global healthcare market’s growth. With the widespread adoption of digital technologies and increased healthcare spending, the industry is expected to witness significant growth. Therefore, Wall Street analysts expect healthcare stocks Viatris (VTRS) and Zai Lab (NASDAQ:ZLAB) to deliver substantial returns in the coming months. Read on.The COVID-19 pandemic accelerated a change across the global healthcare ecosystem that has led to the rapid adoption of technology. Investors’ confidence in the sector is evidenced by the Health Care Select Sector SPDR Fund’s (XLV) 7.9% returns over the past three months versus the SPDR S&P 500 ETF Trust’s (SPY) 5.8% gains.
According to the Deloitte 2021 Global Healthcare Outlook, the industry’s GDP share should average 10.3% in 2021 and 2022. An aging population, rapid clinical and technology advances, and continued healthcare spending should drive the industry’s growth. Consequently, the global healthcare and pharma market is expected to reach $1.58 trillion by 2027, registering a 4% CAGR.
Hence, Wall Street analysts expect quality health care stocks Viatris Inc. (VTRS), and Zai Lab Limited (ZLAB) to rally by 50% or more in the coming months.