Stocks in this sector are set to surge in 2025 after a disappointing year, Citi says

New York: So, Citi’s analysts are saying that healthcare stocks are about to bounce back big time in 2025. After a rough year, they’re predicting a solid 19% growth in earnings. That’s a huge jump from just 4% this year.

They think the stocks are finally at a good price, making it a smart time to invest. This year, the healthcare sector has lagged behind the S&P 500, which has been on fire, up 26%.

It’s been a tough ride for healthcare, with a lot of uncertainty around policies. But Citi believes things are looking up. They mentioned that the sector’s been undervalued, and it’s about time for a turnaround.

The analysts pointed out that the past year’s struggles have eased their worries about valuations. They’re feeling more optimistic now. They expect the healthcare sector to finally catch up and show some real growth.

With the recent political shake-ups, especially with Trump’s pick of Kennedy for health services, there’s been a lot of chatter. Kennedy’s been pretty vocal against vaccines, which made stocks for companies like Moderna and Pfizer drop.

But some experts think the panic is overdone, especially for companies making weight-loss drugs. They argue that the fears don’t really reflect the actual risks to these companies.

Citi’s analysts are on the same page, predicting a whopping 64% return for Eli Lilly, which is a big player in the sector. They believe that even with the ongoing policy debates, the market has already factored in a lot of that uncertainty.

Overall, it looks like pharmaceutical and biotech stocks are set to lead the charge in 2025. Citi’s also shifting focus to some defensive stocks, as they see some cyclicals with high prices and not much growth on the horizon.

So, it seems like a good time to keep an eye on healthcare stocks as we head into 2025!