Investment Research
Much like action within the overall market, we’re seeing a handful of stocks performing well within the Health Care sector. Most names, though, are struggling to gain traction.
On the surface, not much has changed for the Health Care sector since we last checked in. Under the hood, we’re seeing some great opportunities.
The Health Care sector has been a big laggard in 2023, outperforming only the Financials year-to-date. Despite that, the sector has yet to show material weakness on an absolute basis, so there’s no reason to turn overly bearish. It’s well above last year’s lows, and it recently found support at the 161.8% retracement from the 2020 COVID collapse.
Rather than act as a safe haven during February’s decline, Health Care stocks were some of the worst performers during the month.
Remember how we said the theme for January was failed moves? Check out this massive reversal in the Health Care sector:
Health Care is setting new highs on a relative basis, and that’s nothing to ignore. There’s no reason to negative on the sector unless the ratio is back below those 2020 highs.
Health Care is one industry away from being a leader. Health Care providers are breaking out to new all-time highs after a 6-month consolidation.
Health Care has been a mixed bag, which explains why we’ve been reluctant to have a more positive opinion on the sector despite its outperformance this year. We continue to be skeptical about the intermediate term prospects, given that we’re approaching the early-2020 relative highs. Still, there’s no reason to be negative about the longer-term outlook.