The health care sector sustains to be one of the worst performing places of the market, despite the recovery off the Feb. 11 lows. With the earnings season coming up, health care stocks could be one of the some bright spots in the markets and exchange traded funds that track the sector could lead ahead.
Based on a percentage of "Buy" ratings at the end of March, analysts are most optimistic on the health care sector, in accordance to FactSet. About 61 percent of analysts had a Buy rating on health care at the end of the 1st quarter.
The better outlook for the health care industry comes as many hope continued growth in the sector, rather an ongoing so-called earnings recession in the S&P 500. While FactSet anticipates the broad S&P 500 to show an earnings decline of -9.1 percent for Q1 2016, the health care sector is hoped to report revenue growth of 8.9 percent.
S&P Global Market Intelligence also mirrors this sentiment, projecting S&P 500 Q1 EPS to decline 7.5 percent year-over-year but anticipating 2.9 percent earnings growth for the health care sector.
Investors seeking high-quality exposure to the health care industry have a number of options present, involving the Health Care Select Sector SPDR (XLV), iShares U.S. Healthcare ETF (IYH) and Vanguard Health Care ETF (VHT).
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