Healthcare stocks rally after strong start to Q3

Stronger-than-expected third-quarter earnings from UnitedHealth Group and Johnson & Johnson helped healthcare stocks rally Oct. 16; however, the sector remains one of the worst performing in the S&P 500 this year, according to The Wall Street Journal.

Advertisement

The third-quarter results of UnitedHealth Group and Johnson & Johnson beat analysts’ expectations. Both companies raised their forecasts for the year.

The positive results provided a break for the sector, which has fared worse than nearly every other segment on the S&P 500, save for energy. Healthcare stocks have risen only 5.7 percent this year as political uncertainty weighs on investors. The entire index has seen a nearly 20 percent gain, according to The Wall Street Journal.

Despite the rally Oct. 16, several managed care companies are down this year: Centene Corp. is off 22 percent; Cigna has fallen 16 percent; and Anthem is down 5.2 percent. With its gains Oct. 16, UnitedHealth’s losses have shrunk to 4.2 percent for 2019.

More articles on healthcare finance:
Massachusetts hospital to close ED in November, shut down in 2020
Missouri hospital in danger of closing over $3M tax bill
Rural hospital execs in Georgia must finish finance classes by end of 2020

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Download Whitepaper

The cost-saving opportunity most health systems overlook

Many hospitals and health systems scrutinize staffing, service lines, and payer contracts for savings. Fewer look at one of their largest assets: real estate.…

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.