The medical industry could be a solid defensive play in an uncertain economy as its profit margins remain stable irrespective of the economic cycle. The medical sector is well-positioned for growth as spending on healthcare is rising due to an aging population and the rise in chronic diseases.
Amid this backdrop, it could be wise to buy fundamentally strong medical stocks Medifast, Inc. (MED) and Zynex, Inc. (ZYXI). On the other hand, Herbalife Ltd. (HLF) could be worth adding to your watchlist. MED and ZYXI are rated B (Buy), while HLF is rated C (Neutral) in our proprietary rating system, POWR Ratings.
