The health-care sector is outperforming with bullish indicators and attractive valuations

  • Health-care stocks are the best-performing sector of the S&P 500 in 2024
  • Analysts are bullish on health-care stocks due to attractive valuations and growth potential
  • Eli Lilly remains the sector’s top performer, driven by its drug Zepbound
  • Other health-care names, including UnitedHealth Group, AbbVie, Viatris, Dexcom, Danaher Corp., and McKesson Corp., are also performing well
  • The sector recently experienced a “golden cross,” a bullish technical indicator
  • Health-care stocks have risen more than 14% since hitting their 52-week low in October 2023
  • Analysts believe health-care stocks are undervalued and have significant upside potential
  • The SPDR Health Care Select Sector ETF looks poised to climb higher and could surpass its previous record

Health-care stocks have emerged as the best-performing sector of the S&P 500 in 2024, attracting the attention of Wall Street analysts. Analysts are bullish on the sector due to attractive valuations relative to earnings and a compelling growth story. Eli Lilly remains the sector’s top performer, driven by the success of its drug Zepbound. Other health-care names, including UnitedHealth Group, AbbVie, Viatris, Dexcom, Danaher Corp., and McKesson Corp., are also pulling ahead. The sector recently experienced a "golden cross," a bullish technical indicator. Since hitting their 52-week low in October 2023, health-care stocks have risen more than 14%. Analysts believe the sector is undervalued and has significant upside potential. The SPDR Health Care Select Sector ETF looks poised to climb higher and could surpass its previous record, indicating a strong start to 2024 for the health-care sector.

Public Companies: Eli Lilly (LLY), UnitedHealth Group Inc. (UNH), AbbVie Inc. (ABBV), Viatris Inc. (VTRS), Dexcom Inc. (DXCM), Danaher Corp. (DHR), McKesson Corp. (MCK)
Private Companies:
Key People: Jeff DeGraaf (Technical Analyst at Renaissance Macro), Jonathan Krinsky (Analyst at BTIG)

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Factuality Level: 7
Justification: The article provides information about the performance of health-care stocks in 2024 and the reasons behind their outperformance. It includes data from Dow Jones Market Data and FactSet, as well as quotes from analysts. However, the article lacks in-depth analysis and may benefit from providing more context and perspectives from different sources.

Noise Level: 3
Justification: The article primarily focuses on the performance of health-care stocks in 2024 and the opinions of Wall Street analysts. It provides some information on specific companies and their success, as well as technical analysis indicators. However, it lacks depth and analysis of long-term trends or antifragility. It also does not hold powerful people accountable or explore the consequences of decisions. The article lacks scientific rigor and intellectual honesty as it relies heavily on stock performance and analyst opinions without providing evidence or data to support its claims. Overall, the article contains mostly noise and filler content.

Financial Relevance: Yes
Financial Markets Impacted: Health-care stocks

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the performance of health-care stocks in the financial markets, indicating their relevance to financial topics. However, there is no mention of any extreme event or its impact.

Reported publicly: www.marketwatch.com