Stay Away from These 3 Meme Stocks in the Healthcare Sector
StockNews
Published Dec 20, 2021 12:53PM ET
Updated Dec 20, 2021 01:30PM ET
Stay Away from These 3 Meme Stocks in the Healthcare Sector
While the healthcare industry is expected to remain in focus even after the COVID-19 pandemic, thanks to growing healthcare demand from an aging population, not all companies in this space are well-positioned to capitalize on the industry tailwinds. Therefore, we believe meme stocks in the healthcare sector, Teladoc Health (NYSE:TDOC), Clover Health (CLOV), and Sundial (SNDL), are best avoided now. Let’s discuss these names.After the popular meme stocks AMC and GameStop (NYSE:GME) tumbled in price this month, the meme stock mania appears to be ebbing. The buzz has worn off for the meme stocks for now but is expected to resume at the beginning of 2022.
While the development of therapies, increasing demand from an aging population, and a growing trend in preventive healthcare should propel the healthcare sector’s growth in the post-pandemic environment, the sector is expected to face new challenges next year. The healthcare labor shortage, cyberattacks, and the need for stronger management to tackle risks are among the challenges the healthcare sector is expected to face in 2022.
Given this backdrop, we think it is better to avoid meme stocks in the healthcare sector Teladoc Health, Inc. (TDOC), Clover Health Investments, Corp. (CLOV), and Sundial Growers Inc . (NASDAQ:SNDL). None is not well-positioned to capitalize on the industry tailwinds.
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