Global X Funds Global X HealthTech ETF

HEAL

Market cap $26M

Investors are questioning the staying power of medical technology (medtech) stocks, which have fallen from grace since the COVID-19 pandemic. The starting point is to distinguish between medtech and other healthcare industries.

The healthcare sector has experienced one of its most significant de-ratings in 35 years, with valuations now at a 30% discount to the broader market. Healthcare trades at historical valuation discounts across multiple metrics.

The U.S. Food and Drug Administration's recent enforcement action against drug promotion is sending ETFs with exposure to weight-loss treatment manufacturers into question.

Investors cooled to the healthcare sector in 2024, which dramatically trailed global and US equity markets for the year. any investors are now asking: how will the policy changes under a new US administration affect healthcare companies?

Doximity, Omnicell, Embecta, Cencora and EDOC are included in this Analyst Blog.

Telemedicine stocks could do no wrong during the pandemic. With millions on lockdown and still in need of medical care, telemedicine stocks, like Teledoc Health (NYSE:TDOC) ranfrom about $80 to a high of $288.80.

With the growing demand for telemedicine, the market could be worth about $450 billion by the time 2032 rolls around. That's according to Emergen Research.

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