Healthcare has long been considered a defensive sector that provides consistent returns to investors. And with the continuing advancements in medicines and increasing demand for healthcare services, we expect fundamentally sound mega-cap healthcare stocks Pfizer (PFE), Novo Nordisk (NYSE:NVO), and AbbVie (ABBV) to generate stellar returns this year and beyond. So, let’s examine these names.The healthcare industry has long enjoyed investors’ attention because of its defensive and stable nature. But the COVID-19 pandemic has thrust the industry into the limelight. And investors’ interest in healthcare stocks is evident in the Health Care Select Sector SPDR’s (XLV) 22% returns over the past year.
The increasing use of technology in modern healthcare is expected to bolster the industry. Technological advances in telemedicine, digital health platforms, wearable devices, and genome sequencing, as examples, are expected to bring the cost of quality healthcare down. According to a Global Market Insights Inc. report, the healthcare artificial intelligence (AI) market is expected to reach $34.5 billion by 2027.
The aging population and advancements in the treatment of chronic diseases are also expected to spur the growth of the healthcare industry. So, considering all this, we think it could be wise to invest in mega-cap quality healthcare stocks Pfizer Inc. (NYSE:PFE), Novo Nordisk A/S (NVO), and AbbVie Inc . (NYSE:ABBV) for the rest of the year.