We believe that the resurgence of COVID-19 cases, technological advancements, and an increasing focus on finding cures for various critical diseases should drive the performance of the healthcare industry in the near term. So, fundamentally sound healthcare stocks UnitedHealth (UNH), Eli Lilly and Company (NYSE:LLY), and Abbott (ABT) could be solid bets now. Let’s discuss.Digital transformation in the healthcare industry has resulted in many and various scientific breakthroughs over the years, especially since the onset of the COVID-19 pandemic. In addition, ongoing research and development for advanced drugs, devices, or treatments for critical diseases and the aging population, should help healthcare companies grow substantially. Indeed, global healthcare spending could reach more than $10 trillion by 2022.
Furthermore, the inelastic demand for healthcare products should help the industry perform well even if economic growth slows due to the resurgence of COVID-19 cases.
We think rising investor optimism about the industry’s growth prospects should drive the performance of fundamentally sound healthcare stocks UnitedHealth Group Incorporated (NYSE:UNH), Eli Lilly and Company (LLY), and Abbott Laboratories (NYSE:ABT) in the near term.