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Yahoo
14-05-2025
- Business
- Yahoo
Healthcare worst-performing S&P 500 subsector year to date: Mizuho expert
The healthcare sector is not doing so well. It's been a key target of the Trump administration since the start of the year, and the headwinds keep coming. Most recently, an effort to reduce drug prices in the US to match international pricing has frustrated Big Pharma executives, who have been attempting to curry favor with the administration by committing billions of dollars in supply chain investments in the US. The move also puts pressure on pharmacy benefits managers (PBMs), which Trump called "middle men" and accused of profiting from drugs they have no role in making. That's on top of tariffs that have been impacting the medical technology sector and the threat of 25% tariffs on other pharmaceuticals. There have been questions around the sector and its reputation as a defensive or safe play amid market volatility. Current indicators are signaling the reputation they once enjoyed may no longer be the case. To that end, the S&P 500 Health Care (SP500-35) subsector is now the worst-performing of the S&P year to date, Mizuho sector analyst Jared Holz said in a note to clients Wednesday. "The S&P Healthcare Index is now -5.6% YTD vs. the (flat) SPX," he said. "As usual, need both Pharma and Managed Care to perform well to give Healthcare a good shot of keeping pace with the broader markets." Two of the top stocks in the index are Eli Lilly (LLY) and UnitedHealth Group (UNH) — two megacap stocks that have recently been pummeled. UnitedHealth lost 18% in trading yesterday due to a CEO shake-up and pulling its 2025 guidance, while Lilly lost 12% last week after its competitor Novo Nordisk (NVO) sealed an exclusive formulary deal with one of the largest PBMs. Holz emphasized that the pressure on the industry is a combination of factors. "The complexities and challenges facing Healthcare remain as pointed as we can ever recall. It is not one thing in particular," Holz said. "It is a little bit of everything. Given constant government related intervention (pressure), we do not believe Healthcare is at all defensive and rather emblematic of difficult to monitor risk factors requiring a great deal of patience," he continued. Truist's Jailendra Singh recently echoed the sentiment. "Everything has slowed down. The macro environment looks pretty uncertain," he told Yahoo Finance. Some experts believe the industry hasn't been safe for over a decade in an increasingly difficult political climate. But that has been emphasized in recent months with the trading volatility. Bank of America Securities analyst Tim Anderson said as much, saying that when markets were melting down, healthcare did get a boost, "But then Trump starts talking about drug pricing and tariffs on pharma, and that kind of reminded us ... it's not the safe sector that it used to be." Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, care services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem.
Yahoo
14-05-2025
- Business
- Yahoo
Healthcare worst-performing S&P subsector YTD: Mizuho expert
The healthcare sector is not doing so well. It's been a key target of the Trump administration since the start of the year, and the headwinds keep coming. Most recently, an effort to reduce drug prices in the US to match international pricing has frustrated Big Pharma executives, who have been attempting to curry favor with the administration by committing billions of dollars in supply chain investments in the US. The move also puts pressure on pharmacy benefits managers (PBMs), which Trump called "middle men" and accused of profiting from drugs they have no role in making. That's on top of tariffs that have been impacting the medical technology sector and the threat of 25% tariffs on other pharmaceuticals. There have been questions around the sector and its reputation as a defensive or safe play amid market volatility. Current indicators are signaling the reputation they once enjoyed may no longer be the case. To that end, the S&P 500 Health Care (SP500-35) subsector is now the worst-performing of the S&P year to date, Mizuho sector analyst Jared Holz said in a note to clients Wednesday. "The S&P Healthcare Index is now -5.6% YTD vs. the (flat) SPX. As usual, need both Pharma and Managed Care to perform well to give Healthcare a good shot of keeping pace with the broader markets," he said. Two of the top stocks in the index are Eli Lilly (LLY) and UnitedHealth Group (UNH) — two megacap stocks that have recently been pummeled. UnitedHealth lost 18% in trading yesterday due to a CEO shake-up and pulling its 2025 guidance, while Lilly lost 12% last week after its competitor Novo Nordisk (NVO) sealed an exclusive formulary deal with one of the largest PBMs. Holz emphasized that the pressure on the industry is a combination of factors. "The complexities and challenges facing Healthcare remain as pointed as we can ever recall. It is not one thing in particular. It is a little bit of everything. Given constant government related intervention (pressure), we do not believe Healthcare is at all defensive and rather emblematic of difficult to monitor risk factors requiring a great deal of patience," Holz said. Truist's Jailendra Singh recently echoed the sentiment. "Everything has slowed down. The macro environment looks pretty uncertain," he told Yahoo Finance. Some experts believe the industry hasn't been safe for over a decade in an increasingly difficult political climate. But that has been emphasized in recent months with the trading volatility. Bank of America Securities analyst Tim Anderson said as much, saying that when markets were melting down, healthcare did get a boost, "But then Trump starts talking about drug pricing and tariffs on pharma, and that kind of reminded us ... it's not the safe sector that it used to be." Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, care services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Healthcare worst-performing S&P sub-sector YTD: Mizuho expert
The healthcare sector is not doing so well. It's been a key target of the Trump administration since the start of the year, and the headwinds keep coming. Most recently, an effort to reduce drug prices in the US to match international pricing has frustrated Big Pharma executives — who have been attempting to curry favor with the administration by committing billions of dollars in supply chain investments in the U.S. The move also puts pressure on pharmacy benefits managers (PBMs), which Trump called "middlemen" and accused them profiting off of drugs they have no role in making. That's on top of tariffs that have been impacting the medical technology sector and the threat of 25% tariffs on other pharmaceuticals. There have been questions around the sector and its reputation as a defensive or safe play amid market volatility. Current indicators are signaling the reputation they once enjoyed may no longer be the case. To that end, the S&P 500 Health Care (SP500-35) sub-sector is now the worst-performing of the S&P year-to-date, Mizuho sector analyst Jared Holz said in a note to clients Wednesday. "The S&P Healthcare Index is now -5.6% YTD vs. the (flat) SPX. As usual, need both Pharma and Managed Care to perform well to give Healthcare a good shot of keeping pace with the broader markets," he said. Two of the top stocks in the index are Eli Lilly (LLY) and United Health Group (UNH) — two mega-cap stocks that have recently been pummeled. UnitedHealth lost 18% in trading yesterday due to a CEO shakeup and pulling its 2025 guidance, while Lilly lost 12% last week after its competitor Novo Nordisk (NVO) sealed an exclusive formulary deal with one of the largest PBMs. Holz emphasized that the pressure on the industry is a combination of factors. "The complexities and challenges facing Healthcare remain as pointed as we can ever recall. It is not one thing in particular. It is a little bit of everything. Given constant government related intervention (pressure), we do not believe Healthcare is at all defensive and rather emblematic of difficult to monitor risk factors requiring a great deal of patience," Holz said. Truist's Jailendra Singh recently echoed a similar sentiment. "Everything has slowed down. The macro environment looks pretty uncertain," he told Yahoo Finance. Some experts believe the industry hasn't been safe for over a decade, in an increasingly difficult political climate. But that has been emphasized in recent months with the trading volatility. Bank of America Securities analyst Tim Anderson said as much, saying that when markets were melting down, healthcare did get a boost, But then Trump starts talking about drug pricing and tariffs on pharma, and that kind of reminded us ... it's not the safe sector that it used to be." Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, care services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-04-2025
- Business
- Yahoo
Why Eli Lilly and Company (LLY) Is the Best Medical Stock to Buy According to Billionaires
We recently published a list of . In this article, we are going to take a look at where Eli Lilly and Company (NYSE:LLY) stands against other best medical stocks to buy according to billionaires. Some experts view medical, healthcare, and big pharma stocks as immune from trade carnage, making them a safe haven amid the uncertainty brought about by Trump's tariffs. On April 8, Mizuho Securities America healthcare sector strategist Jared Holz appeared on CNBC's 'Power Lunch' to talk about whether the speculations around the healthcare sector being a safe haven during market turmoil are true. He also discussed why healthcare companies are failing to get increased investor respect, given that healthcare is 20% of the American economy, which translates to around 1/5th of the country's entire national output. Holz said that the country's major healthcare and pharmaceutical companies undoubtedly help fight its healthcare problems. However, when we look at their financial models and the way their businesses are currently set up, we have got generic patent cliffs over the next 5-7 years on the medium to long-term angle of the company, along with price concessions with the IRA and some of the things the Biden administration put into place. We have also got pricing degradation over the near term, and between those two lies competition and other setbacks. The models thus never line up well enough for investors to have a lot of confidence, as the business models do not lend themselves to long-term viability. These are the primary reasons the sector and stocks have been under pressure for so long. READ ALSO: and . Holz further opined that managed care, particularly the government-centric names, are somewhat safe as they are insulated from tariffs as US-based companies. In fact, the economic slowdown is actually beneficial for them as they want less utilization and less patience through the system, which is how they typically beat numbers. He said that managed care is having a good day, and investors might think about owning some companies in the sector. It is, however, a relative game, as there are several different variables at play, and investors are essentially playing a game of hopscotch in an attempt to jump from one area to another, whether it's tariffs, drug pricing, or other public policies. He painted a similar picture for medical device stocks that are more US-centric. These two sectors thus have less risk relative to others, making them somewhat of a safe haven. In this article, we first sifted through ETFs and financial media reports to compile a preliminary list of stocks. We then examined Insider Monkey's exclusive database of billionaire stock holdings to select the 10 best medical stocks with the most billionaire investors. These billionaires are founders or managers of some of the world's leading hedge funds and companies. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (). Number of Billionaire Investors: 23Eli Lilly and Company (NYSE:LLY) develops, manufactures, discovers, and sells pharmaceutical products. These products span oncology, diabetes, immunology, neuroscience, and other therapies. Investors are bullish on Eli Lilly and Company (NYSE:LLY) due to its in-demand GLP-1 drugs, used to treat diabetes and obesity, which are still in their early growth stages, and the company's strong financials. The company has strong operations. It reported a 32% revenue growth in fiscal 2024 compared to fiscal 2023, exceeding its first-time guidance by $4 billion. Eli Lilly and Company (NYSE:LLY) also made substantial progress across its strategic deliverables in fiscal Q4 2024, with revenue growing by 45% in the quarter, supported by strong uptake of its Mounjaro and Zepbound drugs. On February 10, the company announced a collaboration with AdvanCell to advance cancer treatment through targeted alpha therapies. By combining Eli Lilly and Company's (NYSE:LLY) expertise in drug manufacturing with AdvanCell's Pb-212 production technology and infrastructure, the collaboration aims to expedite clinical progress for innovative radiopharmaceuticals. This is expected to be a significant opportunity for the company to further strengthen its cancer treatment portfolio and explore Pb-212-based therapies. In a report released on April 9, Tim Anderson from Bank of America Securities maintained a Buy rating on Eli Lilly and Company (NYSE:LLY). Its median price target of $736.93 implies an upside of 37.73% from current levels. highlighted LLY in its Q4 2024 investor letter. is what the firm has to say: 'Eli Lilly and Company (NYSE:LLY) contributed to performance in the fourth quarter. While shares underperformed, our underweight position versus the benchmark resulted in a positive contribution to relative returns. Lilly shares were weak following an uncharacteristic third-quarter earnings miss driven by softer-than-expected sales of its blockbuster diabetes and obesity drugs. The company blamed this partly on wholesaler destocking. Lilly reinforced its view that end demand for the drugs remains strong'. Overall, LLY ranks 1st on our list of best medical stocks to buy according to billionaires. While we acknowledge the potential for LLY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LLY but trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
13-04-2025
- Business
- Yahoo
Why Universal Health Services (UHS) Is Among the Best Medical Stocks to Buy According to Billionaires
We recently published a list of . In this article, we are going to take a look at where Universal Health Services, Inc. (NYSE:UHS) stands against other best medical stocks to buy according to billionaires. Some experts view medical, healthcare, and big pharma stocks as immune from trade carnage, making them a safe haven amid the uncertainty brought about by Trump's tariffs. On April 8, Mizuho Securities America healthcare sector strategist Jared Holz appeared on CNBC's 'Power Lunch' to talk about whether the speculations around the healthcare sector being a safe haven during market turmoil are true. He also discussed why healthcare companies are failing to get increased investor respect, given that healthcare is 20% of the American economy, which translates to around 1/5th of the country's entire national output. Holz said that the country's major healthcare and pharmaceutical companies undoubtedly help fight its healthcare problems. However, when we look at their financial models and the way their businesses are currently set up, we have got generic patent cliffs over the next 5-7 years on the medium to long-term angle of the company, along with price concessions with the IRA and some of the things the Biden administration put into place. We have also got pricing degradation over the near term, and between those two lies competition and other setbacks. The models thus never line up well enough for investors to have a lot of confidence, as the business models do not lend themselves to long-term viability. These are the primary reasons the sector and stocks have been under pressure for so long. READ ALSO: and . Holz further opined that managed care, particularly the government-centric names, are somewhat safe as they are insulated from tariffs as US-based companies. In fact, the economic slowdown is actually beneficial for them as they want less utilization and less patience through the system, which is how they typically beat numbers. He said that managed care is having a good day, and investors might think about owning some companies in the sector. It is, however, a relative game, as there are several different variables at play, and investors are essentially playing a game of hopscotch in an attempt to jump from one area to another, whether it's tariffs, drug pricing, or other public policies. He painted a similar picture for medical device stocks that are more US-centric. These two sectors thus have less risk relative to others, making them somewhat of a safe haven. In this article, we first sifted through ETFs and financial media reports to compile a preliminary list of stocks. We then examined Insider Monkey's exclusive database of billionaire stock holdings to select the 10 best medical stocks with the most billionaire investors. These billionaires are founders or managers of some of the world's leading hedge funds and companies. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (). A doctor speaking with a patient in a hospital bed in an exam room. Number of Billionaire Investors: 17Universal Health Services, Inc. (NYSE:UHS) provides hospital and healthcare services. The company operates through the Acute Care Hospital Services, Behavioral Health Care Services, and Other segments. Universal Health Services, Inc. (NYSE:UHS) reported a 2.2% growth in adjusted admissions to its acute care hospitals on a same-facility basis during fiscal Q4 2024. Same-facility net revenues in the company's acute care hospital segment also rose by 8.7% during the quarter, supported primarily by a 5.3% growth in net revenue per adjusted admission. During fiscal Q4 2024, same-facility revenues at its behavioral health hospitals grew 11.1%, supported by an 8.7% increase in revenue per adjusted patient day. Same-facility revenue rose by 7.4%, excluding the year-over-year growth in Medicaid supplemental payments. On April 9, Guggenheim initiated coverage of Universal Health Services, Inc. (NYSE:UHS) with a Buy rating and a $208 price target. Overall, UHS ranks 7th on our list of best medical stocks to buy according to billionaires. While we acknowledge the potential for UHS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UHS but trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
