Healthcare is worst-performing sector in the S&P 500 in 2019, new report finds
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Healthcare is worst-performing sector in the S&P 500 in 2019, new report finds

The healthcare sector has fallen from being the best-performing sector in the S&P 500 in 2018 to the worst-performing so far this year, a new report by The Wall Street Journal found. Despite the index’s 16 percent climb overall this year, healthcare shares only grew by 3.8 percent so far.

The Wall Street Journal cited the following factors as contributors to healthcare’slow performance in 2019:

  • The ongoing confusion surrounding stricter regulations and policy uncertainties
  • CVS’ and Walgreens’ projections of lower annual earnings earlier this year due to a decline in profits from generic drug sales
  • Discussions in major political arenas of “Medicare for All” legislation and concern regarding the regulation of managed care businesses

Some analysts, however, are projecting healthcare to bounce back and see the second-highest profit growth within the S&P 500. Read the full report here.

For more information on this topic, or to learn how Baker Tilly healthcare specialists can help, contact our team.

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