Despite the healthcare system’s limitations having been exposed last year amid the COVID-19 pandemic, investors’ interest in the industry has been growing due to the vital role it is playing in fighting against the COVID-19 virus and the progress it is making to get ahead of future pandemics. So, we think it could be wise to bet now on established healthcare companies Abbott (ABT), Agilent Technologies (NYSE:A), and Laboratory Corporation (LH). They are well positioned to generate steady returns this month and beyond. Read on.The limitations of the global healthcare industry were exposed last year as the COVID-19 pandemic wreaked havoc globally. Nevertheless, the industry has been playing a vital role in protecting populations worldwide from the virus with its products and services. Also, the industry is now focusing on finding cures for other chronic critical illnesses and for solutions to stay ahead potential future pandemics. This, along with the integration of technology in healthcare services, should keep driving the industry’s growth. According to National Health Expenditure (NHE) data, national health spending is expected to reach $6.2 trillion by 2028.
Given the near-inelastic demand for healthcare products and services, healthcare companies are perceived as defensive companies. So, betting on healthcare stocks could help investors hedge their portfolios against current market volatility. Investors’ interest in the healthcare sector is evident in the Health Care Select Sector SPDR Fund’s (XLV) 14.3% returns over the past nine months.
So, we think it could be wise to bet now on fundamentally sound healthcare companies Abbott Laboratories (NYSE:ABT), Agilent Technologies, Inc. (A), and Laboratory Corporation of America Holdings (NYSE:LH).