Healthcare stocks are also showing attractive valuations relative to other defensive sectors, which are richly valued. Biotechnology historically trades at multiples that are elevated relative to broader benchmarks, but after last year’s of struggles for biotechnology names, some analysts see value with some big-name biotech stocks.

Related: Hot Biotech Stocks, ETFs Can Keep Surging

Biotech “trades more than 25% below its 15-year average based on historical and forward price-to-earnings ratios. Compared with the broader market, biotech stocks are also trading at a discount and far below their historical average,” according to State Street.

“One of the things that people are worried about is, are we going to get a repeat of what we saw in 2015, when the IBB crashed 40 percent in just six months. But the set-up is much, much different than it was back then,” said Matt Maley, equity strategist at Miller Tabak, according to CNBC.

ETF traders who are betting big on the biotechnology sector rebound have also utilized leveraged long options including the Direxion Daily S&P Biotech Bull Shares (NYSEArca: LABU), which takes the 3x or 300% daily performance of the S&P Biotechnology Select Industry Index.

For more information on the biotech sector, visit our biotechnology category.

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