Health insurer stocks climb as flu cases drop: 3 things to know

This year's hard-hitting flu season peaked in early February, and now influenza activity is on the decline, according to the CDC. As a result, investors may be turning away from hospital stocks and toward health insurance shares, Bloomberg reports.

Here are three things to know.

1. Hospitals were the only underperforming stock in the healthcare sector March 26, with hospital shares dipping as much as 2.2 percent intraday. Comparatively, health insurer stocks grew up to 2.7 percent as the broader market saw a rebound.

2. Bloomberg Intelligence analyst Jason McGorman told the publication investors might be cashing in on the 18 percent growth hospitals witnessed this year. First quarter closing positions may have also affected trading.

3. In the long run, analysts see insurers as having a better backdrop than hospitals, which may allow them to outperform hospitals, accordig to Bloomberg.

More articles on payer issues:
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Orlando Health, Aetna roll out joint health plan: 4 things to know
Aetna CEO: 'Warren Buffett said healthcare was a tapeworm on US economy — It's true'

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