\"So, large-cap biotechs have done well this year,\" he said. \"We went back and actually analyzed what's driven that outperformance. Interestingly, the majority of the outperformance has been driven by new-product introductions and earnings upside because of leverage down to P&L. <\/p>\n
\"The multiple has actually contracted, which I think is kind of counterintuitive to what the public believes.\"<\/p>\n
Read More3 top biotech stocks with big upside: Pro <\/p>\n
Over the next year or two, the large-cap biotech sector is likely to see \"robust data flow, new clinical data announcements, continued momentum in terms of the blockbuster product launches and the P&L leverage to drive earnings,\" Chai added. <\/p>\n
\"And in a way, we can envision a scenario where now sentiment, which we define as sort of the multiple, can catch up to fundamentals.\" <\/p>\n
Chai said that his top three health-care stock picks are: Medtronic, which should do well regardless of how its proposed tax-inversion deal with Covidien turns out; pharmaceutical company Sanofi, and Tornier, a medical-device manufacturer that should benefit from a variety of factors, including recent restructuring and potential consolidation. <\/p>\n
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Originally posted here: <\/p>\n
These 3 hot health-care stocks look strong: Pro<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" \"So, large-cap biotechs have done well this year,\" he said. \"We went back and actually analyzed what's driven that outperformance Continue reading