After the incredible surge in 2013, the healthcare sector is no doubt crushing the overall market this year too. This is largely thanks to the bullish trend in both the pharma and biotech segments and robust performances by major drug companies (read: 3 Top Ranked Healthcare ETFs in Focus).
Total fourth quarter earnings for the medical sector reported so far are up 1% with a beat ratio of 74.5% while revenues are up 6% with a beat ratio of 72.3%. Though biotech stocks continued their strong performances, pharma stocks have shown a strong turnaround from the recent patent cliffs and became the darlings of the financial market of late.
Increasing merger and acquisition activities, promising new drugs and their approval, restructuring, increased pipeline visibility, aging population and expansion into emerging markets are boosting confidence in the pharma sector.
— Zacks Investment Research