Health is a topic that has dominated discussions, decision making, headlines, and investment strategy for much of the COVID-19 pandemic. The fragile connection between the state of the world economy and public health has been front and center for what feels like way too long. Furthermore, the focus on health has been a strong reminder of the important role that the people and companies that work within the healthcare sector have in today’s world.
While much attention within the healthcare sector goes to the large-cap companies working on epidemic-level disease control, the sector is much more diverse and has plenty to offer all types of investors. One segment, which we’ve chosen to focus on in this article, is medium-sized U.S. healthcare companies that have arguably moved beyond the survival-type risks that they were exposed to when they were smaller but are not quite of scale to be considered large-cap. The group of mid-cap healthcare companies has significant upside potential within the public market while also having a risk profile that many investors find acceptable.
- Mid-cap healthcare companies tend to fly under the radar when it comes to those interested in investing health-related companies.
- Top mid-cap healthcare stocks can be identified by analyzing the top holdings of popular ETFs and then filtering on metrics such as portfolio weighting and the number of occurrences a holding has across the group of funds.
- Mid-cap healthcare companies typically have decades of experience, unique areas of specialization, and thousands of employees. The combination of factors helps give each mid-cap healthcare company its own type of competitive advantage.
How to Identify Top Mid-Cap Health Companies?
The mid-cap healthcare sector comprises companies engaged in drug making, medical equipment manufacturing, healthcare infrastructure and facilities, diagnostics, research, and more. Mid-cap companies are often the targets for mergers and acquisitions (M&A) activity from…
Read complete post here: