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Your gateway to insightful market trends, prudent personal finance advice, and the pulse of global economy.

Key Points

  • A newly dovish FED has opened the floodgates for budget increases across the economy, and this sector is starting the trend by adding jobs.
  • More than adding jobs, the sector has added investor interest in stocks like Pfizer and, most specifically, in Align Technology.
  • Analysts and markets are all over this stock, and even the CEO has bought up to $2 million in stock ahead of the next rally.
  • 5 stocks we like better than Pfizer

Because the past few months in the stock market have been a wild emotional roller coaster, most investors are now looking for the most logical and fundamental reasons to justify investing in any sector. Today, new pieces of data are being blasted across your monitor, so it is alright to feel pulled in a thousand directions.

Now that the FED has pivoted into a dovish stance, a complete turn from its interest rate hike pattern undertaken during 2023. For 2024, markets are now expecting up to six rate cuts during the year, which could allow the best stocks in the best sectors to really soar.

Far from being the best sector in the market, who can tell which is the best one? Aside from being known as a staple of stability, the healthcare sector is calling for bullish investors, guiding them toward stocks like Align Technology NASDAQ: ALGN for reasons that will become clear in just a bit.

You still need to smile for the pictures

The Health Care Select Sector SPDR Fund NYSEARCA: XLV is the benchmark for investing in the stable space that is health care because, after all, no matter what economic environment you find yourself in, taking care of your health is not something that would ever be taken out of the budget.

So now that money is about to become a bit cheaper, thanks to the lower interest rates that are set to come, budgets at different sectors of the economy are beginning to flourish. It seems that the money is first flowing to hire new talent.

Suppose you break down the latest employment situation reports, which show the United States economy adding up to 199 thousand jobs in the past month. In that case, you will see a good chunk of them entering the health care sector.

How many? Try 76.8 thousand, or 38.6% of total jobs in the economy. There are already stocks that benefitted from this sudden turn in business activity. Just take a brief look at Pfizer NYSE: PFE and its 42.1% upside based on analyst price targets and its 46.4% projected EPS growth for the next year!

But why is a little company ($16.6 billion) like Align Technology the new focus of investors looking to get into healthcare? By being one of the best and cheapest stocks in the dental industry, its upside potential is just another reason for you to smile.

Sharing one fundamental factor in its stability, no matter how good or bad the economy is, you still need to smile every day. Align stock is here to help millions of people carry on this side of necessary health care.

Stars have aligned

Joseph M. Hogan, the company’s CEO, has been buying up stock in the past quarter to the tune of $2 million since October 2023. There must be a reason behind his view turning optimistic, and who else better to know what the future holds than the CEO himself?

The bullish sentiment doesn’t stop at the CEO; analysts across Wall Street understand the value of the stability this stock could bring in the coming months. With a consensus price target of $325.6 a share, there is a 20.0% upside from today’s prices. 

An average forward P/E of 17.3x acts as a for the industry and the valuation against which to compare stocks like Align. And when it comes down to it, a 28.9x multiple, which commands a 134.0% premium to the sector, places Align stock right at the top.

By being willing to overpay for this stock, markets are letting you know that something big is expected of the company in the coming months (likely to be shown in the next quarterly financials).

And remember, analyst targets don’t do justice to where the stock was earlier in 2023, with a 52-week high price of $412.0 a share.

 

 

Before you consider Pfizer, you’ll want to hear this.

MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Pfizer wasn’t on the list.

While Pfizer currently has a “Hold” rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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