A confluence of the widespread adoption of digital innovations, accelerating developments in therapeutics, and rising healthcare spending should propel the healthcare sector’s growth. Therefore, we think the recent price dips in fundamentally sound healthcare stocks Pfizer (PFE), Abbott Laboratories (NYSE:ABT), and Agilent Technologies (NYSE:A) provide a perfect buying opportunity. So, read on.An aging population, improvements in drugs and therapeutics to treat chronic diseases, the integration of advanced technologies, and rising healthcare spending should propel the healthcare sector’s growth. Furthermore, the growing trend of preventive healthcare, which has been accelerated by the COVID-19 pandemic, bodes well for healthcare providers.
According to a Monthly National Health Spending report, expenditure increased 6.3% year-over-year to $4.09 trillion in September 2021. Also, with high GDP growth, health spending now accounts for nearly 17.5% of GDP. The global healthcare and pharma market is expected to reach $1.58 trillion by 2027, registering a 4% CAGR. And investors’ interest in the healthcare sector is evident in the Health Care Select Sector SPDR Fund’s (XLV) 16.8% gains year-to-date.
Therefore, fundamentally strong healthcare stocks Pfizer Inc. (NYSE:PFE), Abbott Laboratories (ABT), and Agilent Technologies, Inc. (A), which have suffered price declines lately, could be ideal picks now.