Health care has been the best-performing S&P 500 sector in the past week, rising 2 percent. And according to some traders, now is the time to buy.
Erin Gibbs, equity chief investment officer of S&P Investment Advisory Services, said she expects the sector strength to continue in 2015 and that health care is the only S&P sector currently forecast to see three years of double-digit growth.
"This has the absolute strongest growth for not only for the past two years, but also one of the strongest sectors going forward," Gibbs said Monday on CNBC's "Power Lunch." "They simply don't have the deflationary pressures that we are seeing in a lot of other industries."
In addition, Gibbs said, health-care stocks are currently trading at an attractive valuation of 16.4 times forward earnings. In comparison, she said, the S&P 500 is trading at 17.2 forward earnings.
"Any time the sector has traded below 17 times forward earnings in the past two years has been a value," Gibbs said.
Health-care stocks have seen a pullback in the past month spurred by a sell-off in biotech stocks, which are down about 5 percent in one month.
However, technician Ari Wald of Oppenheimer said he sees the sector rising another 5 percent to return to the July breakdown level around 850. The sector also hit an all-time high in July at 892.
"It's very deeply oversold. This is where we'd expect it to stabilize," Wald said Monday on "Power Lunch."
Wald said the sector at its most oversold level since 2011, with about 30 percent of health-care stocks in an uptrend.
"There's still a lot of contrarian fuel here to help a bit of a relief rally," he said.