Investors have always found the healthcare sector a reliable source of steady returns. The industry will continue to grow due to medical advances and growing demand. We recommend that investors avoid Oak Street Health (OSH), and Bright Health Group(BHG) healthcare stocks. These stocks have seen their fundamentals weaken and are being downgraded recently by analysts. So, read on to learn more.The healthcare industry has seen unprecedented capital inflows and investor interest over the past year, as evidenced by the Health Care Select Sector SPDR ETF’s (XLV) 20.9% returns over this period. The emergence and growing demand for treatment and diagnosis of serious diseases, such as coronavirus, are driving companies to invest in integrated, comprehensive and complete medical equipment.

It has tremendous potential to expand next year because of technological developments and the rising demand from an aging populace for quality healthcare. Global healthcare is projected to grow by $11.9 trillion in 2022.

However, not all companies have been able to capitalize on the industry’s favorable growth prospects. Morgan Stanley Oak Street Health Inc., (NYSE) and Bright Health Group Inc.(BHG were both recently downgraded (NYSE:) due to poor fundamentals. They also lack the ability to perform better than their peers. These stocks should be avoided immediately.

Continue reading on StockNews