Healthcare stock prices rose a mere 6.9% in the nine months ended Sept. 30, providing an early indication that the industry's year-end performance is retreating from 1995's stellar gains.
In an analysis for MODERN HEALTHCARE, WDI Capital Markets, a Hilton Head, S.C.-based healthcare advisory and investment banking firm, said the nine-month increase shows that healthcare shares are well off 1995's 10.6% first-half gain and 40% increase for the year. WDI did not calculate comparable figures for the same nine-month period in 1995.
The data were extracted from WDI's upcoming Annual Healthcare Industry Report, which will review performance of more than 750 public healthcare companies in 34 market segments during a five-year period.
Because of losses in the third quarter, prices of medical device and supply stocks edged up 3.5% for the nine months, squelching overall healthcare stock performance for the nine-month period. By comparison, prices of medical device and supply stocks rose 10.8% in the first half of 1995 and a whopping 51.4% for the year.
Hospital stock prices were up 12.5% for the nine months, compared with a 17.3% gain in the first half of 1995. Provider and service stocks increased 9.2%, lagging behind 1995's year-end gain of 25.9%. Stock prices of imaging services-the top performing segment so far this year-rose 43.7%, down from the 59% increase recorded in the six months ended June 30, 1995.