Despite unprecedented advancements in the healthcare industry, investors are currently shifting their focus toward outdoor stocks to benefit from the fast-paced economic reopening. In-part because of this trend, the current price levels of healthcare stocks NovoCure (NASDAQ:NVCR), 10x Genomics (NASDAQ:TXG), GoodRx (GDRX), and Doximity (DOCS) look unsustainable given their bleak growth potential. So, let’s take a closer look at these names.Over the past year, the healthcare industry has made significant progress in providing analytics-based digital solutions and has played a major role in the battle against an historic public health crisis. The use of big data in healthcare services should drive the industry’s growth in the long run. A significant shift to value-based healthcare is occurring, with an emphasis on smart decision making, mitigating risk and preventative care.
However, given the current focus on production and manufacturing industries to help drive the economy back to pre-pandemic levels, capital investments in the field of healthcare are likely to remain low in the near term.
With that in mind, we think the current price levels of healthcare stocks NovoCure Limited (NVCR), 10x Genomics, Inc. (TXG), GoodRx Holdings, Inc. (GDRX), and Doximity, Inc. (DOCS) look unsustainable, given the companies’ weak growth prospects. Therefore, these stocks are best avoided now.