What Happened?

A number of healthcare stocks fell in the afternoon session after several negative developments weighed on the sector. Weakness in managed care providers was a significant factor, with companies like Elevance Health and Humana seeing declines due to an analyst downgrade and a lost lawsuit regarding Medicare bonus payments, respectively. 

Additionally, some pharmaceutical and biotech companies experienced sharp drops following unfavorable news; for instance, Sarepta Therapeutics plunged after a report indicated another patient death tied to its experimental gene therapy, and GSK's blood cancer drug dosage was voted against by the FDA advisory committee. Broader market sentiment, including concerns about rising costs and inadequate pricing for 2025 plans among health insurers, also contributed to the downward pressure on healthcare equities.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Research Tools & Consumables company Thermo Fisher (NYSE: TMO) fell 3%. Is now the time to buy Thermo Fisher? Access our full analysis report here, it’s free.
• Immuno-Oncology company Exact Sciences (NASDAQ: EXAS) fell 3%. Is now the time to buy Exact Sciences? Access our full analysis report here, it’s free.
• Medical Devices & Supplies - Specialty company Integer Holdings (NYSE: ITGR) fell 3.2%. Is now the time to buy Integer Holdings? Access our full analysis report here, it’s free.
• Research Tools & Consumables company Revvity (NYSE: RVTY) fell 3.2%. Is now the time to buy Revvity? Access our full analysis report here, it’s free.
• Genomics & Sequencing company 10x Genomics (NASDAQ: TXG) fell 3%. Is now the time to buy 10x Genomics? Access our full analysis report here, it’s free.

Zooming In On Revvity (RVTY)

Revvity’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 2 months ago when the stock gained 7.7% as the major indices popped (Nasdaq +3.4%, S&P 500 +2.5%) in response to the positive outcome of U.S.-China trade negotiations, as both sides agreed to pause some tariffs for 90 days, signaling a potential turning point in ongoing tensions. 

This rollback cut U.S. tariffs on Chinese goods to 30% and Chinese tariffs on U.S. imports to 10%, giving companies breathing room to reset inventories and supply chains. 

However, President Trump clarified that tariffs could go "substantially higher" if a full deal with China wasn't reached during the 90-day pause, but not all the way back to the previous levels. 

Still, the agreement cooled fears of a prolonged trade war, helping stabilize expectations for global growth and trade flows and fueling renewed optimism. The optimism appeared concentrated in key trade-sensitive sectors, particularly technology, retail, and industrials, as lower tariffs reduce cost pressures and restore cross-border demand.

Revvity is down 16.9% since the beginning of the year, and at $93.10 per share, it is trading 27.1% below its 52-week high of $127.75 from September 2024. Investors who bought $1,000 worth of Revvity’s shares 5 years ago would now be looking at an investment worth $847.78.

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