Related: Biotech ETFs Pop as Bristol-Myers Squibb Set to Acquire Celgene
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.
“Part of the biotech rally may be due to the oversold nature of the sector. Biotech was among the market’s most oversold sectors in 2018, declining nearly 10 percent last year. A number of this week’s biggest gainers remain firmly in bear market territory,” reports CNBC.
For more information on the healthcare sector, visit our healthcare category.