{"id":271294,"date":"2025-11-04T17:18:11","date_gmt":"2025-11-04T17:18:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/271294\/"},"modified":"2025-11-04T17:18:11","modified_gmt":"2025-11-04T17:18:11","slug":"morningstar-time-to-buy-beaten-down-healthcare-stocks-before-rebound","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/271294\/","title":{"rendered":"Morningstar: Time to Buy Beaten-Down Healthcare Stocks Before Rebound"},"content":{"rendered":"

Healthcare stocks<\/a> have been among the worst-performing sectors over the last year. But Dominic Pappalardo, the chief multi-asset strategist at Morningstar Wealth, thinks the sector is poised for a turnaround.<\/p>\n

During a recent conversation we had, he shared a compelling chart showing that the sector has lagged despite that its earnings growth is soaring.<\/p>\n

\"healthcare<\/p>\n

Morningstar Wealth<\/p>\n

“Healthcare has been beaten down for a lot of reasons \u2014 mostly earlier in the year related to potential regulatory hurdles and new administration policies affecting healthcare sectors,” Pappalardo said. And yet, “healthcare earnings have grown faster than the rest of the US market from mid-2024 to mid-2025.”<\/p>\n

He continued: “You had a situation where the fundamentals were outpacing the broad market, but performance was dramatically lagging. We think that naturally sets up for some reversal to occur.”<\/p>\n

Analysts at Morgan Stanley<\/a> agree with him. They cited several factors that contribute to their bullish outlook, like impending drug price clarity, insulation from heightened tariffs, a growing number of mergers and acquisitions, cheap valuations, and AI opportunities.<\/p>\n

Pappalardo threw in another reason: its defensive nature as the job market appears to weaken.<\/p>\n

“Even if we get an economic pullback, downturn, or even a recession, healthcare revenues still tend to hold up pretty well,” he said.<\/p>\n

“If you look through the last 12 months of employment reports, 12 out of 12 times healthcare has been the sector that’s added the most employees,” he added. “That tells us companies are investing in future growth because they think there’s upside down the road, which bodes well for that sector.”<\/p>\n","protected":false},"excerpt":{"rendered":"Healthcare stocks have been among the worst-performing sectors over the last year. But Dominic Pappalardo, the chief multi-asset…\n","protected":false},"author":2,"featured_media":271295,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[59],"tags":[24379,145158,145159,145157,145161,97,252,253,145160,64465,18293,18080,17706,27290,28442,17589,7540,2384],"class_list":["post-271294","post","type-post","status-publish","format-standard","has-post-thumbnail","category-health-care","tag-acquisition","tag-beaten-down-healthcare-stock","tag-cheap-valuation","tag-dominic-pappalardo","tag-drug-price-clarity","tag-health","tag-health-care","tag-healthcare","tag-heightened-tariff","tag-insulation","tag-last-year","tag-merger","tag-morningstar","tag-number","tag-reason","tag-rebound","tag-sector","tag-time"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/271294","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=271294"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/271294\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/271295"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=271294"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=271294"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=271294"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}