Biogen, Tandem Diabetes and Universal Health Face Caution as Health Care Stocks Lag Market

Health care stocks have gained 3.7% over the past six months, trailing the S&P 500’s 7.1% advance, as investors weigh COVID-related inventory destocking, rising competition and uneven short-term demand. The report flagged Biogen (NASDAQ: BIIB), Tandem Diabetes Care (NASDAQ: TNDM) and Universal Health Services (NYSE: UHS) as stocks warranting caution. Biogen, with a market value of $28.56 billion, traded at $192.88, or 14.2 times forward earnings. Tandem Diabetes, valued at $1.06 billion, traded at $15.64, or 20.2 times forward EV-to-EBITDA. Universal Health Services, with a market capitalization of $10.29 billion, traded at $171.76, implying 7.2 times forward earnings. The article cited sector headwinds and increased venture-backed competition as reasons for investors to be selective in health care exposure.