Related: A Biotech Pullback Could be Afoot
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.
One positive for biotech stocks and ETFs: There has been nothing out of Washington D.C. after President Donald Trump repeatedly vowed to crack down on high drug prices. The silence may be a shift in priorities as Trump has been busy with a number of political flareups and his promise to push through key initiatives like tax cuts.
For more information on the biotech sector, visit our biotechnology category.