Deutsche Bank expects healthcare stocks to surge

Deutsche Bank equity analysts say now may be a good time to invest in healthcare stocks, according to a recent blog on Wall Street Journal.

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On the S&P 500, the healthcare sector slipped 7 percent in the past three months, making it the worst performing sector. This is unusual compared to recent years, according to the report.

However, Deutsche Bank’s analysts expect earnings to drive improved performance in this sector at the end of the year and into next year, according to the report. They predict sales to grow 6 percent and per-share earnings to grow between 6 and 9 percent in 2016.

Due to current conditions, the healthcare sector is cheaper than the index, according to the report. The analysts expect factors such as the aging population, the push to treat conditions with drugs and the use of technology and other tools to maximize healthcare labor will bolster the sector, according to the report.

 

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