5 Best Sectors To Invest In Heading Into 2023

In this article, we discuss the 5 best sectors to invest in heading into 2023. If you want to see more of the top sectors to consider, check out 11 Best Sectors To Invest In Heading Into 2023. 

5. Medical Specialties 

Medical Specialties is one of the best sectors to invest in heading into next year. The COVID-19 pandemic accelerated healthcare transformation by at least a decade, and the industry will continue to evolve in the future, creating unique investment opportunities. One of the top stocks in the medical specialties industry favored by elite investors is AbbVie Inc. (NYSE:ABBV), a company that discovers, develops, and manufactures pharmaceuticals worldwide. 

On October 28, AbbVie Inc. (NYSE:ABBV) declared a $1.48 per share quarterly dividend, a 5% increase from its prior dividend of $1.41. The dividend is payable on February 15, 2023 to shareholders of record on January 3. The dividend yield on December 5 came in at 3.61%. 

Credit Suisse analyst Trung Huynh on November 17 initiated coverage of AbbVie Inc. (NYSE:ABBV) with an Outperform rating and a $170 price target, calling it one of his two top ideas on a relative basis among the U.S. large-cap biopharma peer group. 

According to Insider Monkey’s data, 80 hedge funds were long AbbVie Inc. (NYSE:ABBV) at the end of the third quarter of 2022, compared to 71 funds in the earlier quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital held a significant stake in the company, comprising 3.2 million shares worth $431.60 million. 

Here is what Baron Funds specifically said about AbbVie Inc. (NYSE:ABBV) in its Q3 2022 investor letter:

“AbbVie Inc. (NYSE:ABBV) is a drug developer best known for Humira, an immunosuppressant that is the best selling drug of all time. Given outsized key product risk (patent cliff and generic launches beginning in 2023), AbbVie has broadened its pipeline, highlighted by its Allergan acquisition. Shares fell on results that missed consensus and indications that legacy franchises were outperforming newer product launches, calling into question AbbVie’s long-term strategy. With promising assets in the pipeline and its robust cash flow profile, we believe AbbVie will grow well into the future.”