BANK OF AMERICA: Buy these 16 healthcare stocks to capture their collective 50% upside ahead of a sector rally.
Bank of America has identified 16 healthcare stocks that investors should consider buying in order to capture their collective 50% upside ahead of a potential sector rally.
The healthcare sector has been underperforming the broader market in recent months, but Bank of America analysts believe that several catalysts could drive a sector-wide rebound. These include an easing of COVID-related restrictions, increased M&A activity, and potential policy changes from the Biden administration.
Here are the 16 healthcare stocks that Bank of America recommends buying:
- AbbVie Inc. (ABBV)
- Amgen Inc. (AMGN)
- Anthem Inc. (ANTM)
- Bristol-Myers Squibb Co. (BMY)
- Centene Corp. (CNC)
- Cigna Corp. (CI)
- CVS Health Corp. (CVS)
- Eli Lilly and Co. (LLY)
- Gilead Sciences Inc. (GILD)
- HCA Healthcare Inc. (HCA)
- Humana Inc. (HUM)
- Johnson & Johnson (JNJ)
- Merck & Co. Inc. (MRK)
- Pfizer Inc. (PFE)
- UnitedHealth Group Inc. (UNH)
- Zimmer Biomet Holdings Inc. (ZBH)
Bank of America analysts believe that these stocks have the potential to outperform the broader market due to their strong fundamentals, growth prospects, and attractive valuations.
In particular, the analysts highlight AbbVie as a top pick, citing the company's strong pipeline of drugs and potential for future M&A activity. They also note that Pfizer is well-positioned to benefit from its COVID-19 vaccine, while UnitedHealth Group could see increased demand for its healthcare services as the population ages.
Overall, Bank of America's bullish outlook on the healthcare sector suggests that investors should consider adding exposure in order to capture potential gains ahead of a sector-wide rally. By targeting the stocks listed above, investors may be able to benefit from a collective 50% upside over the coming months and years.