The COVID-19 pandemic brought a renewed interest into the healthcare sector, and with the surging Delta variant raging across the country, that interest isn’t expected to dissipate anytime soon. Due to that attention, many healthcare stocks have reached sky-high valuations. It’s not just companies that offer vaccines and therapies for COVID, either.
In fact, the healthcare sector is one of the largest in the U.S. economy. It makes up close to 20% of GDP. As the baby boomer generation gets older, there will be an increased need for pharmaceuticals, biotech therapies, and hospital stays. Approximately $3.5 trillion is spent on healthcare in the U.S., which is only expected to increase in upcoming years.
This article originally appeared at StockNews.com.