There’s value in healthcare, IT stocks: Strategist

March 1, 2012

INFORMATION technology and healthcare are two sectors where investors can find value, Peter Garnry, equity strategist at Saxo Bank said.

“We are looking for companies that have a high return on investment capital and a positive spread to average cost of capital. The companies that are doing that best right now are in those two sectors,” Garnry explained.

This November, the United States will go to the polls and if incumbent President Barack Obama wins, his healthcare reform program will continue, with drug companies expected to contribute billions toward its cost.

But Peter Garnry says any risks of knock-on price falls to healthcare stocks are overblown.

“You’ve got to remember it is a very large sector with a very large lobby group in Washington. It’s a very good defensive sector and the market has discounted so much negative news going forward, that we feel it’s a clear buy,” he said.

Source: CNBC

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Category: Features

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