The health care sector has recently shown signs of life and potential stability after shaking off a long list of challenges, according to Fidelity Portfolio Manager Preeti Sayana, who believes part of the cure is increased spending among biopharmaceutical firms and a revived diagnostics industry driven by technological advancement, evolving markets needs and strategic realignment.
“The backdrop is far more constructive than it has been in some time,” says Sayana, who manages Fidelity® Sustainable U.S. Equity Fund (FSEBX). “I am particularly excited about makers of diagnostic or medical products that stand to benefit from normalization in capital spending and easing inventory and supply-chain challenges.”
In actively managing the diversified domestic equity strategy, launched in 2021, Sayana applies a sustainability lens to choose stocks of companies she considers stewards of environmental, social, and financial and operational capital. She believes businesses with robust sustainability practices should be more resilient over time.
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Accordingly, she cites Thermo Fisher Scientific (TMO) and Danaher (DHR) as illustrative holdings she believes are well-positioned within the life sciences tools and services industry, a conviction she also extends to medical device maker Boston Scientific (BSX); all three were notable positions as of March 31, 2026.
“The business headwinds that previously weighed on these firms – such as inventory corrections, supply chain disruptions and weaker overseas demand – appear to have eased,” says Sayana. “This could support improved financial performance going forward, in my view.”
She adds that each is supported by a clean balance sheet, normalized customer inventory and improved order patterns.
As for Boston Scientific, Sayana sees potential for upside over the intermediate term. “Its stock valuation seems appropriate as of March 31, and I believe the company should be able to continue executing well,” she says.
As the health care sector moves beyond years of uncertainty, Sayana remains confident in her renewed outlook. “These companies, and several others, are aligned with improving business trends,” she says. “I believe they could see positive momentum if health care continues its recovery.”
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Preeti Sayana is a portfolio manager and research analyst in the Equity division at Fidelity Investments.
In this role, Ms. Sayana is responsible for researching international small cap companies. She is also the portfolio manager of Fidelity Series International Small Cap Fund and manages Sustainable U.S. Equity and Women’s Leadership strategies across various investment vehicles.
Prior to assuming her current responsibilities, Ms. Sayana was an analyst researching international small cap consumer companies focused on the Europe, Japan, and Australia markets. She was also on the emerging markets and core research teams for 12 years. She covered emerging-market consumer companies globally and focused on U.S. large cap consumer stocks. Additionally, she worked as the small and mid cap generalist for India.
Before joining Fidelity in 2005, Ms. Sayana was, from 1998 to 2005, an analyst at Putnam Investments, where she held various research roles in the consumer, telecom, and technology sectors. She has been in the financial industry since 1993.
Ms. Sayana earned her Bachelor of Commerce from Osmania University, her Master of Business Administration in finance from the University of Massachusetts, and her Master of Science in finance from Boston College. She also is a CFA® charterholder.