Factor Analysis and PEST Analysis on Health Care Industry with 15 Stock Samples’ Evaluation

This paper uses factor analysis and score factorial to determine the investment potential of the sample that consists of 15 health care industry stocks’ key indexes from NASDAQ and Toronto stock exchange market in 2021 fiscal year. PEST analysis and KMO and Bartlett’s Test are also applied. Factor analysis received significant attention in the literature of Research on consumer habits and attitudes, but its application to healthcare stock valuation is scarce. Results show that Catalyst Pharmaceuticals, Inc. (CPRX) has the highest comprehensive factor score of 1.8004, which would be considered as a priority when investors are building an investment portfolio. Regeneron Pharmaceuticals, Inc. (REGN) is in second place, with comprehensive factors scores of 0.9968. This study provides analysis and recommendations for investors considering the investment in fifteen healthcare companies both individually and collectively.