Healthcare has proved to be an important sector to have exposure to over the past few years, because of the explosion of new medicines hitting the market and the positive impact of Obamacare on the earnings of some insurance companies and information technology companies alike. The Health Care Select Sector SPDR (NYSEMKT: XLV), for instance, has crushed the broader markets since 2010:
An unwelcome mixture of rising debt levels at a time of potentially shrinking operating margins -- driven by the drug-pricing debate -- has the market spooked, so to speak, leading to these compressed forward P/E ratios. While the market's fear may turn out to be warranted, there are still some compelling buys in pharma that shouldn't be ignored. In fact, I think Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) should produce market-beating returns in 2016, making it a great pick-up for the new year.
Source: Motley Fool
Related Articles:
- Dividend Growth Stocks Are My Conviction
- All Investing Involves Risk
- 7 Dividend Stocks With Room To Increase Their Payout
- High-Quality, Low-Risk Dividend Stocks
- 10 Stocks Building Wealth Through Higher Dividends
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Billionaire Paul Singer has made a fortune shaking up tired businesses. And right now he has a new company in his crosshairs. In industry ci...
-
To live off the passive income from stocks, one of the important things to pay attention to is the company’s distribution policy. Nowadays, ...
-
Utility stocks feature plenty of steady cash flows and high dividends. It doesn’t matter so much what the economy is doing as people still n...
-
The problem is, finding high-quality dividend stocks isn't easy. That's because yield and risk tend to be correlated. In other words...
-
Usually, when a dividend yield is around 10%, it's due to concerns about its sustainability. However, that's not the case with this ...
-
We're now three-fourths of the way through 2019, and it's certainly been an eventful year so far. Although the S&P 500 is up by ...
-
If you review past articles on Income Investors, you might spot a common theme: the best-performing stocks are often those of quiet, unassum...
-
While cash flow can come from bond interest or interest from other types of investments, many income investors hone in on dividends. A divid...
-
Q3 earnings season is almost upon us, as the big banks are set to officially kick-off the season in mid-October. Many investors are keeping ...
-
Not every high-yield stock is worth owning, a fact that income-focused investors often learn the hard way, via a dividend cut, when they fir...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.