What are the different types of healthcare stocks?

Each stock market sector comprises many industries, each with their own nuances, and healthcare is no different. Four of the most important of subtypes of stocks in the case of the healthcare sector include: Drug stocks. These are companies that develop and manufacture pharmaceuticals used in the treatment and prevention of diseases or infections.

Should you invest in healthcare sector stocks?

Due to the indispensable nature of healthcare at all levels of society, stocks issued by companies in the healthcare sector are somewhat insulated from the business cycle. As such, investors may be able to defend against fluctuations in the overall market by building a portfolio that includes healthcare sector stocks.

What is a healthcare sector?

The sector encompasses a wide range of businesses that pertain to the creation and provision of products and services related to healthcare. The healthcare sector is one of 11 S&P sectors/GICS commonly used in finance. The sector encompasses multiple subsections to group different companies based on their primary activities.

Are healthcare stocks insulated from the business cycle?

The healthcare sector is one of the world's largest and fastest-growing industries. Due to the indispensable nature of healthcare at all levels of society, stocks issued by companies in the healthcare sector are somewhat insulated from the business cycle.