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4 Healthcare Stocks to Buy as the Sector Faces Government Heat
ZACKSยท 2025-04-17 13:25
Industry Overview - The U.S. healthcare sector is facing challenges due to technological innovation, policy shifts, financial pressures, and changing consumer expectations [1] - The sector has underperformed compared to the S&P 500, growing only 2.5% in 2024 versus the benchmark's 23.3% increase [2] - Total U.S. healthcare spending has increased from $1.4 trillion in 2000 to $4.9 trillion in 2023, despite the healthcare sector's weighting in the S&P 500 dropping to a 25-year low of about 10% [3] Growth Drivers - An aging population and rising health issues like obesity and diabetes are contributing to sector growth [4] - Key areas such as telehealth, surgery, data analytics, and biotechnology are experiencing significant advancements [3] - The integration of AI in medical research is expected to drive long-term changes in the sector [5] Investment Opportunities - Stocks like Bioventus Inc. (BVS), Amicus Therapeutics, Inc. (FOLD), Rigel Pharmaceuticals, Inc. (RIGL), and The Ensign Group, Inc. (ENSG) are identified as having potential for growth [2] - Bioventus has an expected earnings growth rate of 34.7% for the current year, with a Zacks Consensus Estimate improvement of 43.5% [7] - Amicus Therapeutics shows an expected earnings growth rate of 116.7%, with a 20.9% improvement in earnings estimates [8] - Rigel Pharmaceuticals has an expected earnings growth rate of 20.2%, with a 13.3% improvement in earnings estimates [9] - Ensign Group has an expected earnings growth rate of 13.5%, with a 1.5% improvement in earnings estimates [10]