FYI: The SPDR S&P Pharmaceuticals ETF (XPH) hasn’t quite kept pace with the market this year, but Guggenheim sees brighter days ahead for big drugmakers.
Where we were: XPH has risen 5.2% year to date, even as plenty of analysts have argued the bull case for pharma stocks.
Where we’re headed: Innovation and new product launches should set the stage for more profitability, says Guggenheim.
Health care has been the second-best performing sector this year, with the Health Care Select Sector SPDR ETF (XLV) rising more than 14.3% year to date, not far from the Technology Select Sector SPDR ETF’s (XLK) 14.7% gain, as market-leader tech has been tarnished lately. Yet big drugmakers haven’t necessarily seen much of the benefit, as XPH’s performance shows.
Nonetheless, Guggenheim’s Seamus Fernandez writes that he sees a positive outlook for the global pharma sector, as headwinds fade and innovation and new drugs boost sales and an earnings per share compound annual growth in the mid- to upper single-digits from next year through 2024.
Regards,
Ted
https://www.barrons.com/articles/5-reasons-investors-should-take-a-fresh-look-at-big-pharma-1539103777?refsec=etfsM* Snapshot XPH:
https://www.morningstar.com/etfs/ARCX/XPH/quote.html
Comments
Maybe right bets to dca or add healthcare/biostocks