1. Resilient and promising valuations
In Ng’s view, the high valuations of healthcare stocks are due to the industry’s potential for future growth, such as through expansion plans, as well as the healthy earnings growth it has enjoyed over the last couple of years. He adds there is possibility that the stocks’ valuations – which are currently at multi-year highs – may continue to be supported by earnings growth and their defensive nature amid an uncertain economic landscape.

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