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Scared of tech stocks? Health-care shares are cheaper — and rallying

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Some investors are growing concerned over the seemingly endless bull market in stocks, which is being powered by technology companies. They may want to explore health-care shares, whose price-to-earnings valuations have declined over the past two years even as their prices have risen 16% this year, right behind tech stocks’ ascent.

We’ll list analysts’ favorite health-care stocks below. First, here’s how the sectors of the S&P 500 Index SPX, +0.09% have performed over the past 10 years, leaving out the real estate sector, which was carved out of the financial services sector in September:

S&P 500 sector Total return - 10 years, through July 11
Information Technology 175%
Health Care 171%
Consumer Discretionary 168%
Consumer Staples 165%
Industrials 107%
Utilities 93%
Real Estate 69%
Materials 67%
Telecommunications 42%
Energy 8%
Financials 5%
S&P 500 98%
Source: FactSet

Health care has run a very close second to tech in the past 10 years. Over two years, the tech...


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