EXCLUSIVE: Pharma's Cloud Revolution — A $60B Market By 2030 With 1 Stock To Watch

In an exclusive interview with Benzinga, Gregory DiMarzio, vice president and portfolio manager at Rockland Trust, shared insights on the current market landscape and highlighted potential growth opportunities for investors.

DiMarzio emphasized the health care sector’s underperformance year-to-date (YTD) and its potential for a rebound.

Healthcare Sector Offers Secular Growth Attributes

Popular healthcare sector-tracking ETFs, the Health Care Select Sector SPDR ETF XLV and the Vanguard Health Care ETF VHT are up 6.4% and 6.2% YTD, respectively. The broad market SPDR S&P 500 ETF SPY has gained 10.6% during that time. Over the past year, XLV and VHT have returned less than half of what the broad-market SPY has earned for investors.

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Per DiMarzio, despite economic uncertainties, healthcare offers secular growth attributes that could position it well for the future. “Considering potential economic nervousness, the health care sector offers secular growth attributes that should help it rebound and either catch up with the overall market or be resistant to the downside should the market pull back,” he said.

Veeva Systems Has A Significant Opportunity For Growth, Says DiMarzio

One stock within the healthcare sector that DiMarzio is bullish on is Veeva Systems Inc VEEV. Veeva Systems is a cloud-computing company specializing in pharmaceutical and life sciences applications.

DiMarzio highlighted, “Veeva Systems has a significant opportunity for growth because the industries it serves haven’t yet taken full advantage of utilizing cloud-based technology such as Veeva's.”

Veeva Systems’ innovative approach to cloud computing in pharmaceuticals and life sciences positions it as a leader in the industry, he said.

DiMarzio pointed out, “The total market size globally for cloud computing in pharmaceuticals is expected to reach nearly $60 billion by 2030, a 14.6% CAGR from 2022 – 2030.” This robust growth forecast underscores the vast potential for companies like Veeva Systems to capitalize on emerging trends in the health care sector.

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Image generated using artificial intelligence with Midjourney.