Key insights
- The author expresses concern about the underperformance of their healthcare stock picks (OSCR, HIMS, UNH, NVO) despite their initial investment theses. They are questioning whether to hold or sell these stocks at a loss, highlighting negative price action and re-evaluating their 'safe haven' expectations for the sector. This reflects a potentially weakening sentiment towards certain healthcare stocks, but the impact is limited to individual investor sentiment.
I thought i had picked some winners in OSCR, HIMS, UNH, NVO, but they are actually dragging down my portfolio's overall performance. It seems like they keep testing new lows. OSCR and HIMS were speculative bets for me, but i thought UNH and NVO were good value bets. I also thought healthcare stocks would be kind of a safe haven once investors sell their tech stocks. Should i hold or sell at a somewhat significant loss?
Here are my investment theses on those stocks:
OSCR: Strong AI-driven technology platform that makes claims processing efficient and keeps medical losses low.
UNH: Growth in Optum can drive higher EPS growth. Not a traditonal insurer anymore. Attractive P/E.
HIMS: Large customer base to cross-sell healthcare products. Moving from knock-offs to branded GLP-1s. Good at finding consumer health niches to go after.
NVO: Still a strong #2 in GLP-1s with comprehensive injectable and oral offerings, and even without upward price movement, can offer a solid dividend of over 4.5%.
Would love to hear how others feel about healthcare and these stocks in particular.