NEW YORK (TheStreet) --Healthcare stocks have been beaten down in 2016, lower 9% over the last three months alone. That said, despite the weak stock performances in the healthcare space, Ritholtz Wealth Management CEO Josh Brown points to a silver lining.
"Fundamentals haven't changed; this is sentiment. Amgen (AMGN) - Get Report hit a 52-week high a month ago, and it's since down 19%. Have the fundamentals of Amgen deteriorated by 19% in 30 days? Probably not," Brown noted during CNBC's "Fast Money Halftime Report" on Friday.
He pointed out that healthcare right now looks "terrible" however likened to the current negative performance to a similar situation in October 2014.
"What was going on in 2014? More concerns about rhetoric in a midterm election year. Here we are again, a couple of weeks from the election, everyone is freaking out. There is no doubt that Obamacare is a mess, there is no doubt that there are healthcare costs pressure and inflation," Brown explained.
However, added that healthcare stocks are currently inexpensive, as they trade at about 15% times forward earnings over the next four quarters when they historically trade at 19%.
"These are stocks [that] pay great yields, have their own earnings growth stories, and are not dependent on the overall growth of the economy. There is no doubt that these stocks look messy, but if you're an investor thinking about three or five years from now this is where you're getting good yields and earnings growth," Brown said.