BOSTON ( TheStreet) -- Are price-to-earnings discounts the way to play healthcare stocks in 2010?
The chart above details some atypical discounts that developed in the healthcare sector.
The healthcare reform effort in Washington created mass uncertainty for healthcare stocks. And with healthcare reform nearing closure, some healthcare experts think attractive relative valuation should drive investors to the sector in 2010.
Healthcare consulting firm Leerink Swann, for one, estimates the healthcare discount at approximately 25% versus the broad market. What's more, the Boston-based firm thinks that should be enough to spur increased allocation to healthcare stocks.