Healthcare Sector

AAA

DEFINITION of 'Healthcare Sector'

A category of stocks relating to medical and healthcare goods or services. The healthcare sector includes hospital management firms, health maintenance organizations (HMOs), biotechnology and a variety of medical products.

BREAKING DOWN 'Healthcare Sector'

Stocks in the healthcare sector are often considered to be defensive because the products and services are essential. Even during economic downturns, people will still require medical aid and medicine to overcome illness. Having a consistent demand for goods and services makes this sector less sensitive to business cycle fluctuations.

RELATED TERMS
  1. Mac Crawford

    Former CEO, president and chairman of Nashville-based Caremark, ...
  2. Certificate Of Need

    An endorsement required by numerous states before the construction ...
  3. Consumer Cyclicals

    A category of stocks that rely heavily on the business cycle ...
  4. Basic Materials Sector

    A category of stocks that accounts for companies involved with ...
  5. Financial Sector

    A category of stocks containing firms that provide financial ...
  6. Utilities Sector

    A category of stocks for utilities such as gas and power. The ...
Related Articles
  1. Stock Analysis

    The 5 Worst Health Care Stocks of 2015

    Learn about the health care industry and how it has performed in 2015. Understand why the worst-performing health care stocks of 2015 have underperformed.
  2. Stock Analysis

    Healthcare M&A and Prescription Drug Prices

    Learn how mergers among health care insurance companies and drug companies could lead to increased premiums for consumers and lower drug costs.
  3. Technical Indicators

    Key Financial Ratios to Analyze The Healthcare Industry

    Examine the health care sector and learn about significant financial ratios used by investors and analysts to evaluate health care companies.
  4. Entrepreneurship

    Jim Yong Kim Success Story: Net Worth, Education & Top Quotes

    Learn information about the life and success story of Jim Yong Kim, who rose from humble beginnings to become the head of the World Bank.
  5. Stock Analysis

    Make Room for Exelixis in Your Portfolio

    Discover information and analysis on the biopharmaceutical company, Exelixis, and learn what makes it a good stock to consider adding to your portfolio.
  6. Entrepreneurship

    5 Key Steps to Start Your Own Small Business

    Understand what a small business is and what it takes to build one. Learn about the five key steps needed to start a small business.
  7. Mutual Funds & ETFs

    ETF Analysis: Health Care Select Sector SPDR

    Learn about the Health Care Select Sector SPDR Fund including its performance, current holdings, recent performance and the outlook for the ETF.
  8. Investing Basics

    Top 10 Pfizer Venture Investments

    Learn more about Pfizer Venture Investments, a private equity venture capital firm, and some of the major companies in its investment portfolio.
  9. Home & Auto

    Fighting The High Costs Of Healthcare

    If your employer is cutting medical benefits, a health savings account may be right for you.
  10. Fundamental Analysis

    Evaluating Pharmaceutical Companies

    Learn how to find a healthy pharmaceutical investment in a market full of weak drugs.
RELATED FAQS
  1. What is the long-term outlook of the chemicals sector?

    The long-term outlook for the chemicals sector, as of 2015, is good, primarily due to continuing emerging market opportunities. ... Read Full Answer >>
  2. What proportion of the chemical sector is related to life sciences?

    The subsectors of the chemicals sector that are related to life sciences, pharmaceuticals and agricultural chemicals, make ... Read Full Answer >>
  3. What level of mergers and acquisitions is common in the chemical sector?

    The level of mergers and acquisitions (M&As) in the chemicals sector has surged to an all-time high since the turn of ... Read Full Answer >>
  4. What is the average annual dividend yield of companies in the chemicals sector?

    Some of the most prominent examples of operations management in health care include controlling costs, enhancing the level ... Read Full Answer >>
  5. What happens to the intangible assets of a company when it is bought or sold?

    Some of the best sectors for an investor seeking high annual returns to consider are health care, consumer cyclical and technology. ... Read Full Answer >>
  6. What is the difference between the yield ratio and the dividend payout ratio?

    When asked to determine the magnitude of a patient's disability, physicians assess the individual's ability to perform activities ... Read Full Answer >>
  7. How does being overweight affect my healthcare costs?

    Obesity and being overweight result in higher costs for individuals and for the broader health-care sector. In the United ... Read Full Answer >>
  8. Are investments in the drug sector appropriate for ethical investors?

    A number of aspects are factored for ethical investors considering the drug sector, such as animal testing or the type of ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Bubble Theory

    A school of thought that believes that the prices of assets can temporarily rise far above their true values and that these ...
  2. Stock Market Crash

    A rapid and often unanticipated drop in stock prices. A stock market crash can be the result of major catastrophic events, ...
  3. Financial Crisis

    A situation in which the value of financial institutions or assets drops rapidly. A financial crisis is often associated ...
  4. Election Period

    The period of time during which an investor who owns an extendable or retractable bond must indicate to the issuer whether ...
  5. Shanghai Stock Exchange

    The largest stock exchange in mainland China, the Shanghai Stock Exchange is a nonprofit organization run by the China Securities ...
  6. Dead Cat Bounce

    A temporary recovery from a prolonged decline or bear market, followed by the continuation of the downtrend. A dead cat bounce ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!