COVID-19 Resurgence Accelerates Diagnostic Testing: 3 Top Picks
Zacks Investment Research | Mar 31, 2021 09:18PM ET
The pandemic-hit investment world, during the process of finding COVID-proof profitable sectors, has by now recognized MedTech’s unabated and nuanced growth trend. During the pre-pandemic era, this sector, with limited success history, was never one for big betting. COVID-19 challenges however have changed the investment landscape, making MedTech one of the safest and profitable hunting grounds for investors.
The MedTech sector started witnessing a steady rebound from the second half of 2020, thanks to a number of positive developments, including a series of COVID-19 diagnostic test launches and a large-scale shift of consumer preference toward digital healthcare options. The solid uptick in the non-COVID product portfolio and emergency medical services also aided the fast recovery of the sector.
h3 COVID-19 Testing Demand Continues in 2021/h3It was initially thought that with mass-scale vaccine rollout, COVID-19 testing makers will gradually lose their ground. However, with the renewed wave of coronavirus cases along with emergence of new mutant strains, diagnostic laboratories are once again overwhelmed by the enormous pressure of developing COVID-19 test kits.
h3 Government Initiatives/h3Earlier this year, the Centers for Disease Control and Prevention (CDC) had announced that The Department of Health and Human Services (HHS) will offer more than $22 billion of funding to states, localities, and territories to support the nation’s response to the COVID-19 pandemic. This is as directed by the Coronavirus Response and Relief Supplemental Appropriations Act.
From this amount, $19 billion will be used to support testing, contract tracing, surveillance, containment, and mitigation to monitor and suppress the spread of COVID-19.
One-Year Price Performance/h3
Not only this, the President’s recently-passed $1.9 trillion American Rescue Plan includes $400 billion of funding for critical measures to slow down the spread of the infection.
h3 Federal Tie-Ups With Testing Companies/h3At this point, government representatives are going all out to increase the nation’s testing capacity and forming federal-private tie ups to increase COVID-19 testing volume. Abbott Zacks Investment Research
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