Despite the market volatility, the healthcare sector is outperforming. Thus, we think it could be wise to buy dividend-paying healthcare stocks Gilead Sciences (GILD) and Dow (DOW), which look undervalued at their current price levels. These bargain stocks are rated Buy in our proprietary rating system.
The heightened market volatility due to the rising inflation, the Fed’s rate hikes, and supply chain issues have caused several healthcare stocks to slump in price. However, the healthcare industry continues to outperform the broader market, as is evident from the Health Care Select Sector SPDR’s (XLV) 13.6% year-to-date decline compared to SPDR S&P 500 Trust ETF’s (SPY) 21.1% fall. Demand for healthcare goods and services remains significantly vital.
