Health Stocks: Opportunities Amid Uncertainty

The U. S. healthcare sector has been through a rough patch since the presidential election, with stocks like Danaher and Eli Lilly taking a hit. This uncertainty stems from President-elect Trump's choice for the Secretary of Health and Human Services, Robert F. Kennedy Jr. , known for his skepticism towards vaccines and obesity drugs. However, this uncertainty can present buying opportunities. Danaher's shares have dropped from $250 to $230, and Eli Lilly's from $806 to $720, due to worries about changes in healthcare policies.

Despite these concerns, both companies have strong fundamentals. Danaher's bioprocessing business is growing, and its exposure to NIH funding is minimal. Eli Lilly's recent drop is mainly due to inventory destocking, not underlying demand issues. Both stocks could be bargains if the actual policy changes are less severe than feared.

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