High-Flying MedTech Caught in Market Drop Amid Rising Scrutiny
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Makers of medical device implants and diagnostic products proved health care was no monolith after broadly outperforming the U.S. market and their health care brethren in 2018. But 2019 is shaping up quite differently through the first day of trading amid a spotlight from a variety of investment banks.
A number of last year’s hottest health stocks in the S&P 500 saw shares balloon as investors flooded the expanding sub-sector and pushed stocks like Abiomed Inc., Boston Scientific Corp., and Illumina Inc. to levels not seen in years. However, as investors locked in their 2018 outperformance, the high-flying group slumped in the start of the new year as money managers searched for cheaper stocks.