Investors piled back into medical devicemakers, dental stocks and hospitals afterpromising results from a trial ofPfizer Inc. andBioNTech SE’s Covid-19 vaccine reawakened hopes that patients in need of non-essential procedures would return to their doctor’s office.
Knee and hip replacement makers likeZimmer Biomet Holdings Inc. andStryker Corp. surged on expectations that surgeries would return to normal while dental stocksDentsply Sirona Inc. andHenry Schein Inc. posted double-digit gains on optimism that a return to the dentist would spur new technology purchases. Hospital stocks like bellwetherHCA Healthcare Inc. andTenet Healthcare Corp. rallied on hopes that the vaccine would spur more lucrative patient visits.
The companies that werehammered by Covid’s spread amid the suspension of procedures and thegovernment’s push to halt non-urgent doctor visits rebounded Monday. The promise of a vaccine will help investors gain comfort in revenue expectations across the industry over the coming years as the pandemic hascast a shadow over a return to normal and what that normal would look like.
The S&P 500 Health Care Equipment Index, a barometer for medical device stocks, jumped as much as 3% to a record while a basket of hospital stocks extended a gain for a third day to the highest since February. Contact makers and eye care-focused stocks includingThe Coopers Cos. Inc.,Alcon Inc. andBausch Health Cos. Inc. gained the most in months.
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