Investors are bracing for a rough day for some health care stocks after the Republican victories in Tuesday’s elections.
Mizuho Securities analyst Sheryl Skolnick says the Trump win and looming GOP control of Congress represent a worst-possible outcome for health care stocks. She says that a repeal of the Affordable Care Act, something Trump has promised, would take away the expansion in several states of the government’s Medicaid program for the poor, and that expansion helped both hospital and health insurance stocks.
Skolnick lowered her rating on several stocks, including the nation’s hospital chain HCA Inc. and the largest health insurer, UnitedHealth Group Inc., to “neutral” from “buy.”
Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
