Investors are becoming increasingly bullish on healthcare stocks as the industry exhibits impressive growth. So, we think it could be wise to bet on healthcare stocks UnitedHealth (UNH) and Community Health (NYSE:CYH). Their ratings have recently been upgraded by analysts.The healthcare sector went through a difficult time amid the COVID-19 pandemic as it stretched its resources to the max in its efforts to control the pandemic. Now, with increasing numbers of the U.S. population approaching retirement, and thus qualifying for Medicare, healthcare spending by federal and state governments is projected to increase going forward.
Investors’ interest in healthcare stocks is evidenced by Health Care Select Sector SPDR Fund’s (XLV) 5.4% gains over the past month.
Also, as patients resume scheduling healthcare visits for non-COVID-19 treatments and elective surgeries, many healthcare companies are expected to see solid growth in the near term. UnitedHealth Group Incorporated (NYSE:UNH) and Community Health Systems, Inc. (CYH) have recently been upgraded by analysts. So, we think it could be wise to bet on them now to capitalize on the industry’s tailwinds.