Those bullish fundamentals mean investors can use the recent pullback in valuation among some medical device stocks to get involved with the industry and funds like IHI.
Stephens analyst Chris Cooley “notes that many names in his coverage universe are near their peak valuation points. However, after today’s selloff they aren’t as pricey, and the good news is that higher multiples are backed by favorable fundamentals in the industry that point to higher earnings and sales in 2016,” reports Ben Levisohn for Barron’s.
Medical equipment and hospital stocks recently experienced a decent spike after the Supreme Court ruled in favor of the Affordable Care Act. With the Obamacare subsidies intact, the sector will continue to benefit from a growing client base. [Emergency Room ETF Likes Supreme Court Ruling on Obamacare]
The $769.2 million holds 50 stocks, but its top five holdings combine for approximately 40% of the ETF’s weight.
iShares U.S. Medical Devices ETF
