Key insights
- The author is exploring potential buying opportunities in the MedTech sector, noting significant price declines in major MedTech companies. The sector's underperformance relative to SaaS is highlighted, but the author lacks specific knowledge about the drivers behind the MedTech downtrend, making it difficult to assess the investment opportunity. This could signal a potential contrarian play if the reasons for the decline are temporary or overblown.
After picking up some SaaS stocks at the bottom, I'm on the lookout for some other sectors that look "cheap" compared to the rest of the market. While there's a lot of talk about SaaSpocalypse, I haven't really seen anything about the downtrend that has happened in MedTech during the same time period. Many large-caps in the sector like Boston Scientific, Stryker, Abbott, Medtronic have come down 25-50% in the last 6 months. MedTech index is sitting at the same level as it did 6 years ago.
Unlike SaaS, I know absolutely nothing about MedTech, so I'm not really sure why it's dropping or if it's a good idea to dip in.
Any ideas?