Tuesday, May 25, 2021

Healthcare is UBS's place to play safe among U.S. stocks

Health-care stocks are cheap enough to be suitable for investors looking to play defense, according to Keith Parker, head of U.S. equity strategy at UBS Group AG. Parker compared forward price-earnings ratios, based on projected profit, for the S&P 500 Health Care Index and the S&P 500 in a report Monday. The industry was 21% cheaper based on forward P/Es as of Monday, according to data compiled by Bloomberg. Health care is also less sensitive to rising interest rates and higher inflation than other relatively stable industries, Parker wrote.

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