Increasing investments, integration of advanced technologies, and breakthroughs in clinical trials make the long-term growth prospects of the healthcare industry bright. As this industry is historically known to have dodged market fluctuations, we believe fundamentally-sound healthcare stocks Merck & Co. (MRK), Novartis (NVS), Zoetis (ZTS), and Cerner (CERN) are ideal bets amid the surging market volatility.The healthcare industry has been witnessing rising capital inflows and investor attention over the past year, as evident from the Health Care Select Sector SPDR ETF’s (XLV) 18.2% returns over this period. The discovery of new COVID-19 variants and the rising demand for the diagnosis and treatment of other critical diseases is incentivizing companies to develop advanced and integrated medical devices and solutions, virtual consultations, and therapies.
Given the historically high inflation, supply chain constraints, and ongoing volatility in the broader market, investors and analysts are anticipating a market correction in the near term. However, the inelastic demand for healthcare products should help the industry participants to deliver substantial returns and hedge the current market risks. Global healthcare spending is expected to reach $10.06 trillion by 2022.
Given this backdrop, we believe it is wise to bet on quality healthcare stocks Merck & Co., Inc. (MRK), Novartis AG (NVS), Zoetis Inc . (NYSE:ZTS), and Cerner Corporation (NASDAQ:CERN) that have the potential to deliver solid returns and dodging the market fluctuations.