Synopsis
Four years ago, Covid brought hospital stocks to the limelight. Since then, corporate actions like mergers and takeovers have kept them in the headlines. The high interest in the healthcare sector is due to three reasons. First, many companies have been listed in the past three years; as they are doing well post-listing, more private equity money is chasing hospital assets. Second, healthcare firms are bound to grow, because average spend on healthcare will only increase with the expansion of insurance and spending by the government. Finally, they are pure domestic plays that are not impacted by Trump, cyclical slowdowns, or inflation. So are they a fit for both long term and tactical investors?
Stocks of most sectors – be it industrial or consumer-facing – are showing negative one-year returns at this point of time. Which means the stock prices are lower today than they were a year ago. But one sector where this does not apply is healthcare. A majority of the healthcare stocks are quoting higher from the levels they were at a year back. Why so? Because, there is too much money chasing them. Not only in the listed space, but in the
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