Healthcare stocks might not be reflecting the strength of the industry post-COVID-19, according to a market analysis in The Wall Street Journal.
Four things to know:
1. As of April 15, healthcare stocks have returned about 7 percent this year. Comparatively, the S&P 500 has returned 5 percentage points more.
2. Underperformance among a broad index of small biotechnology shares may be disguising the fact that the healthcare industry is "largely back to normal" after the pandemic's disruption, according to the Journal.
3. The market analysis points to UnitedHealth Group's first-quarter earnings as a sign the healthcare industry remains strong. UnitedHealth saw its revenue grow 9 percent year over year in the first quarter.
4. Healthcare deal activity remains fairly strong as well, according to the Journal. In a recent deal announced April 15, Thermo Fisher Scientific said it plans to acquire PPD, a North Carolina-based pharmaceutical testing company, for $17.4 billion.
Read the full Journal article here.