Pharma and tech drive US stocks growth
On the political front, in July the Democrats they decided to replace Joe Biden in the race for the presidency against Donald Trump which, at the same time, was the victim of an attack. On the economic front, in June inflation fell more than expected. The Chairman of the Federal Reserve Jerome Powell he hinted at potential rate cuts before reaching the 2% target, leading markets to expect a reduction as early as September.
Johnson & Johnson reported robust results, with pharmaceutical sales exceeding expectations, mainly supported by a strong performance in the oncology area. MedTechthe company’s orthopedic division recorded an acceleration in revenue growth thanks to the robotic platform, whose innovative dynamics benefited the cardiovascular segment.
Also Belts showed solid results, with earnings exceeding market expectations. The company continues to win new customers for its uniform rental programs, while increasing cross-selling of related products, demonstrating the significant market opportunity ahead.
Despite short-term market fluctuations, we remain focused on companies that are well protected from competition and capable of generating a earnings growth and above-average long-term capital returns, and which we buy when we see a discount to their intrinsic value.
*Comgest Growth America Fund Manager at Comgest
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