Small-cap and mid-cap Health Care has room to rally – Roth MKM
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With the S&P 1500 Health Care hitting new highs last week, Roth MKM analysts believe it can rally another 6% through its long-term pattern.
In a Technical Strategy report, Roth MKM analysts said that health care (NASDAQ:PSCH), (XLV) will continue to ascend in their rankings. They now classify mid-cap health care as overweight.
“We find the relative line is showing signs of perking up,” said JC O’Hara, chief market technician. “The turnaround is slow, but it is still happening.”
Some bullish mid-cap health care stocks include Acadia Healthcare Co. (ACHC), Encompass Health Corp. (EHC), Globus Medical Inc. (GMED), Halozyme Therapeutics Inc. (HALO), and Illumina Inc. (ILMN).
Bullish health care equipment (XHE) stocks: GE Healthcare Technologies Inc. (GEHC), Abbott Laboratories (ABT), Insulet Corp. (PODD), Teleflex Inc. (TFX).
Bullish health care facilities stocks: Community Health Systems Inc. (CYH), HCA Healthcare Inc. (HCA).
Bullish health care life science tools and services (XHS): BioLife Solutions Inc. (BLFS), Mesa Laboratories Inc. (MLAB).
Bullish pharmaceuticals (XPH): Ligand Pharmaceuticals Inc. (LGND), Pfizer Inc. (PFE), Supernus Pharmaceuticals Inc. (SUPN).
Specifically, about Pfizer (PFE) analysts said that they believe the recent overall market weakness has given them an opportunity to enter the stock at an attractive price.
Finally, when it comes to biotechnology (XBI), the ETF remains under “stiff resistance,” although there are some attractive set-ups.
Those include AbbVie Inc. (ABBV), ADMA Biologics Inc. (ADMA), Agios Pharmaceuticals Inc. (AGIO), AnaptysBio Inc. (ANAB), Black Diamond Therapeutics Inc. (BDTX), and Regeneron Pharmaceuticals Inc. (REGN).