Global Healthcare Trades Near Bottom-Quartile Valuations as Over-65 Demand Lifts Long-Term Outlook
Updated
Updated · Investment Executive · Jun 2
Global Healthcare Trades Near Bottom-Quartile Valuations as Over-65 Demand Lifts Long-Term Outlook
3 articles · Updated · Investment Executive · Jun 2
Summary
Healthcare stocks now sit near bottom-quartile valuations versus their own history, with EdgePoint Wealth Management arguing the selloff has created a long-term entry point.
Adults over 65 are one of the fastest-growing population segments, and people aged 100-plus are the fastest-expanding cohort, driving what the firm says is exponential growth in healthcare consumption with age.
That demand backdrop supports picks such as Thermo Fisher and Revvity, which sell tools and diagnostics across the sector rather than relying on a single drug winner.
Roche is another favored name because failed trials have cut its premium valuation, while management changes, a shift toward commercializing pipeline assets and early AI use in drug development could improve returns.
The opportunity, the firm says, is being masked by a post-Covid revenue hangover and U.S. policy uncertainty around drug pricing, reimbursement, exclusivity and tariffs.