Why are healthcare stocks down this year?
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This effect is strongest in small stocks, and stocks that have performed poorly over the past year. | |
8 Citations | We argue that, because investors are less likely to bid up (down) a stock price if a stock’s 52-week high occurred in the recent (distant) past, these stocks are underpriced (overpriced) and earn higher (lower) future returns. |
4 Citations | This outperformance is mainly driven by stocks that are relatively underpriced but are also exposed to greater downside risk. |
14 Citations | It was found that large stocks have a significant value premium only in January and this high January value premium among large stocks is mainly driven by loser stocks at the turn of the year. |
They sell more poorly performing stocks during the fourth quarter than the first 3 quarters of the year, and such trading behavior is more pronounced for institutions whose stocks on average have underperformed the market. | |
Open access•Journal Article | While healthcare stocks are likely to remain at the top of Wall Street's list of favorites, healthcare analysts and money managers say they don't expect to see the same quality of healthcare companies issuing stock the rest of the year. |
Open access•Journal Article 7 Citations | For example, the U. S. economy has been in slowdown mode since the early 2000s and some analysts argue that defensive stocks, like healthcare, should perform better in these conditions. |
Thus, these firms’ stocks are less likely to crash. | |
42 Citations | We identify two major reasons for the failure of value investing: (1) accounting deficiencies causing systematic misidentification of value, and particularly of glamour (growth) stocks, and (2) fundamental economic developments which slowed down significantly the reshuffling of value and glamour stocks (mean reversion) which drove the erstwhile gains from the value strategy. |
The discount is apparent in downward price shifts before the year-end, and upward price shifts at the turn of the year that are significantly correlated with the simultaneous returns to small stocks, and that cannot reflect tax-loss selling. |
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