Discussing market trends with Benzinga, Gregory DiMarzio, Rockland Trust’s VP and portfolio manager, shed light on the current market dynamics and identified promising investment prospects.
DiMarzio underscored the healthcare sector’s underperformance so far this year and its potential for a turnaround.
Healthcare Sector’s Growth Potential
Prominent healthcare ETFs, including the Health Care Select Sector SPDR ETF XLV and the Vanguard Health Care ETF VHT, have posted YTD gains of 6.4% and 6.2%, respectively. In comparison, the broad-market SPDR S&P 500 ETF SPY rose by 10.6% during the same period. However, XLV and VHT have delivered less than half of SPY’s returns over the past year.
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DiMarzio believes that despite economic uncertainties, the healthcare sector’s intrinsic growth attributes could facilitate a recovery. He stated, “Considering possible economic jitters, the health care sector’s growth potential might help it either catch up with the broader market or offer resilience against downside risks amidst a market retracement.”
Veeva Systems: Poised for Significant Growth
Highlighted as a bullish pick by DiMarzio, Veeva Systems Inc. VEEV is a key player in cloud computing for the pharmaceutical and life sciences sectors.
DiMarzio pointed out, “Veeva Systems stands to gain significantly from untapped opportunities in cloud technology, especially within the industries it caters to.” He praised the company’s innovative cloud solutions in pharmaceuticals and life sciences, positioning it as an industry leader.
Emphasizing the global market potential for cloud computing in pharmaceuticals, DiMarzio highlighted a projected size of nearly $60 billion by 2030, representing a 14.6% CAGR from 2022 to 2030. This robust growth projection underscores the vast opportunities awaiting companies like Veeva Systems in the healthcare sector.
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Image generated using artificial intelligence with Midjourney.
