Q: Even after incorporating political risks, many health care stocks seem to have been punished more than seems justifiable. On Friday; minutes after the FBI said it is re-opening that email investigation , the health care sector sank even lower. The sudden stock price drop was in near-perfect correlation (McKesson, Novo Nordisk, Gild, CVS, Allergan and others were already down significantly year to date, yet all dropped sharply on the FBI news).
Granted, the damage to bio tech and pharma companies was self-inflicted. No one with a moral compass can dispute the fact that drug pricing abuses did happen (and perhaps still do). At current depressed stock prices, however, does it not now seem that many health care companies are being water-boarded indiscriminately? Is available info so nebulous that even traders or investing professionals don't feel confident. Are the unknown factors significant enough to depress stocks this much, though? Even after the already steep drops year to date? ( Sorry, I don't mean this preamble to turn this into a leading question).
QUESTION: Would you buy any Health Care stocks at current valuations (many show low PEG, high ROE)? This sector has been sliding down since 2015. Specifically, would you add to a position in Amgen or Merck , OR in the alternate, would you rather initiate a new position in a medical equipment maker? If the latter, which one please and why? Thank you.
Granted, the damage to bio tech and pharma companies was self-inflicted. No one with a moral compass can dispute the fact that drug pricing abuses did happen (and perhaps still do). At current depressed stock prices, however, does it not now seem that many health care companies are being water-boarded indiscriminately? Is available info so nebulous that even traders or investing professionals don't feel confident. Are the unknown factors significant enough to depress stocks this much, though? Even after the already steep drops year to date? ( Sorry, I don't mean this preamble to turn this into a leading question).
QUESTION: Would you buy any Health Care stocks at current valuations (many show low PEG, high ROE)? This sector has been sliding down since 2015. Specifically, would you add to a position in Amgen or Merck , OR in the alternate, would you rather initiate a new position in a medical equipment maker? If the latter, which one please and why? Thank you.
