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.

INVESTOPEDIA EXPLAINS '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. Financial Sector

    A category of stocks containing firms that provide financial ...
  5. Basic Materials Sector

    A category of stocks that accounts for companies involved with ...
  6. Utilities Sector

    A category of stocks for utilities such as gas and power. The ...
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 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 >>
  3. 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 >>
  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 >>
Related Articles
  1. 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.
  2. 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.
  3. Home & Auto

    Fighting The High Costs Of Healthcare

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

    Evaluating Pharmaceutical Companies

    Learn how to find a healthy pharmaceutical investment in a market full of weak drugs.
  5. Mutual Funds & ETFs

    An Introduction To Sector Mutual Funds

    Investing among several different sectors in the economy is a way to diversify your portfolio.
  6. Home & Auto

    How To Avoid Medical Debt

    Find out what you can do to avoid a financial meltdown when there's a medical emergency.
  7. Options & Futures

    Getting Through The Medicare Part D Maze

    Having trouble sorting through your prescription drug coverage options? We offer some solutions to the confusing process of selecting the right Medicare Part D coverage for you.
  8. Insurance

    What Does Medicare Cover?

    Don't assume you're insured. Find out what you can expect from this healthcare program.
  9. Insurance

    Medicaid Vs. Long-Term Care Insurance

    These are not equal. Here's why you need to think twice before relying on the government-sponsored program.
  10. Mutual Funds & ETFs

    Investing In The Healthcare Sector

    Perform a thorough checkup to uncover a medical stock with a clean bill of health.

You May Also Like

Hot Definitions
  1. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  2. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  3. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  4. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
  5. Grandfathered Activities

    Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United ...
  6. Touchline

    The highest price that a buyer of a particular security is willing to pay and the lowest price at which a seller is willing ...
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!