Most healthcare sub sectors underperformed the broader market in 2016, as the S&P Healthcare Services Index has declined 7.1% versus 10.8% gain for the S&P 500 Index.
While most sub sectors might have underperformed on the stock market, they were quite active in terms of M&A. For instance, temporary staffing, was well below the S&P 500, but one of the most acquisitive sub sectors. Primarily because we are starting to see an equilibrium between buyer and seller valuation expectations. Behavioral health remains another really active M&A space, but valuations have become more subdued, which is reflected in the public stock performance.
Below is the list of best and worst performing healthcare sub sectors compared to the S&P 500 and S&P Healthcare Index.
About Wyatt Matas: Wyatt Matas is a healthcare investment banking firm focused on assisting clients in acquiring and selling healthcare businesses. For more information or to subscribe to our articles and white papers, enter your name and email below.