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Stock impact report

Why Morningstar says it's time to buy beaten-down healthcare stocks before a rebound [Yahoo! Finance]

Morningstar, Inc. (MORN) 
Company Research Source: Yahoo! Finance
Healthcare stocks have been among the worst-performing sectors over the last year. But Dominic Pappalardo, the chief multi-asset strategist at Morningstar Wealth, thinks the sector is poised for a turnaround. During a recent conversation we had, he shared a compelling chart showing that the sector has lagged despite that its earnings growth is soaring. Morningstar Wealth "Healthcare has been beaten down for a lot of reasons — mostly earlier in the year related to potential regulatory hurdles and new administration policies affecting healthcare sectors," Pappalardo said. And yet, "healthcare earnings have grown faster than the rest of the US market from mid-2024 to mid-2025." He continued: "You had a situation where the fundamentals were outpacing the broad market, but performance was dramatically lagging. We think that naturally sets up for some reversal to occur." Analysts at Morgan Stanley agree with him. They cited several factors that contribute to their bullish outlook Show less Read more
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