Please ensure Javascript is enabled for purposes of website accessibility

Why Align Technology, Bausch Health, and Exact Sciences Stocks Tanked Today

By Keith Speights - Mar 18, 2020 at 4:15PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

More coronavirus worries. More misery for these healthcare stocks.

What happened

Increased concerns about COVID-19 slammed the stock market again on Wednesday, hitting several healthcare stocks especially hard. Shares of Align Technology (ALGN 3.04%) were falling 14.9% lower as of 3:28 p.m. EDT. Bausch Health Companies (BHC 20.36%) stock was down 17.9%. Shares of Exact Sciences (EXAS 6.89%) were sinking 11.7% lower.

So what

It's extremely difficult for any stock to perform well when the overall stock market crashes. But are there any reasons to be especially worried about any of these three healthcare stocks? Yes and no.

Businessman looking down at a stock chart declining

Image source: Getty Images.

Align Technology already cautioned that it would be impacted by the coronavirus outbreak in China. However, the company's revenue will take an even bigger hit because of the measures taken in the U.S. and Europe to prevent further spread of COVID-19.

Bausch Health could also be more vulnerable than some other companies in the healthcare sector. The company's revenue comes in large part from vision-care and ortho dermatologic products, which aren't as must-have as some prescription drugs are.

Exact Sciences' business could be impacted somewhat by the coronavirus shutdown as people delay physician visits. However, since the company's Cologuard colorectal cancer screening test can be used at home, Exact Sciences' downside isn't as great as many others. 

Now what

The best thing investors can do right now is stay calm and look to the future. All three of these stocks will rebound over the long run. Exact Sciences could even be one of the biggest healthcare winners from the stock market crash after the dust settles.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Exact Sciences Corporation Stock Quote
Exact Sciences Corporation
$45.15 (6.89%) $2.91
Bausch Health Companies Inc. Stock Quote
Bausch Health Companies Inc.
$8.75 (20.36%) $1.48
Align Technology, Inc. Stock Quote
Align Technology, Inc.
$258.75 (3.04%) $7.63

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.