While the COVID-19 pandemic has highlighted the importance of the healthcare industry, the sector is expected to continue growing after the crisis has passed due to the continuing need to treat several other, chronic, diseases. So, we think it could be wise now to buy the dip in quality healthcare stocks UnitedHealth (UNH) and Agilent (A). They both have a ‘Strong Buy’ rating in our proprietary rating system. Read on.The COVID-19 global, public healthcare crisis has highlighted the healthcare sector's importance and driven up the prices of several stocks in the space. Government efforts worldwide to vaccinate their countries' populations against the virus should help the healthcare sector thrive for the foreseeable future. Furthermore, the sector is well-positioned to grow in the long run with increasing investments and research breakthroughs for treating several chronic diseases.
Moreover, the industry is expected to grow with the rising healthcare needs of an aging population. According to Statista, the United States is expected to have spent 18% of its gross domestic product on healthcare in 2020, a spending level that is likely to increase this year and beyond.
So, we think it could be wise to add quality healthcare stocks UnitedHealth Group Incorporated (NYSE:UNH) and Agilent Technologies, Inc. (NYSE:A) to one’s portfolio now. These companies’ shares are trading below their 52-week highs but have significant upside potential. Furthermore, these stocks are rated ‘A’ (Strong Buy) in our POWR Ratings system.