Most healthcare sub sectors underperformed the broader market in 2016, as the S&P Healthcare Services Index has declined 7.1% versus 10.8% gain for the S&P 500 Index.
While most sub sectors might have underperformed on the stock market, they were quite active in terms of M&A. For instance, temporary staffing, was well below the S&P 500, but one of the most acquisitive sub sectors. Primarily because we are starting to see an equilibrium between buyer and seller valuation expectations. Behavioral health remains another really active M&A space, but valuations have become more subdued, which is reflected in the public stock performance.
Below is the list of best and worst performing healthcare sub sectors compared to the S&P 500 and S&P Healthcare Index.
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