Healthcare is catching the rotation out of AI. Josh Brown's list includes two names that can benefit
Josh Brown and Sean Russo dive into two names that can get a boost from a move out of AI-linked names.
TL;DR
- Healthcare is experiencing a rotation out of AI, becoming the best-performing S&P 500 sector on recent trading days.
- The sector entered the year with its forward P/E relative to the market in the lowest quintile of its 15-year range, suggesting potential value.
- Waters Corporation, a maker of instruments and software for molecule identification, has seen its stock rise significantly after a recent business combination.
- Thermo Fisher Scientific, the largest company in life science tools, has also experienced strong stock performance and analyst target increases.
- Both companies operate in the life science and bioprocess tools segment, which is identified as a fast-growth theme.
- Risk management strategies for both Waters (WAT) and Thermo Fisher Scientific (TMO) are provided, including key price levels for traders and investors.