Zoetis and 5 other healthcare stocks with room to grow

16.11.2022

Healthcare stocks have been a rare bright spot in this year’s gloomy market, as investors have been buying up shares of big companies like McKesson, Cardinal Health and Eli Lilly, taking defensive positions amid the market-wide downturn.

Earlier this month, those gains began to wane as some investors appeared to decide to lock in profits from the sector’s best-performing stocks of the past year. Despite this turmoil, however, there are still opportunities in the health care sector.

In an effort to identify the health care sector stocks that Wall Street analysts believe have the most upside opportunities, we checked the Health Care Select Sector SPDR Fund, an exchange-traded fund that tracks large health care stocks, for the stocks that are trading the lowest compared to the average analyst price target calculated by FactSet.

As of Monday’s close, XLV was down 5.4% so far this year, its components split pretty clearly between stocks that are behind the S&P 500 SPX +0.87% so far this year and stocks that are ahead of the S&P 500.