One group of health care stocks is standing out in the space. Stocks such as Moderna and Novavax — names in the testing and treatment space — have soared as investors place bets in the race for a Covid-19 vaccine.

“We remain bullish on the biotech industry broadly because, aside from tech, it’s difficult to find that type of broad-based strength anywhere else in the market,” Ari Wald, head of technical analysis at Oppenheimer, told CNBC’s “Trading Nation” on Monday.

Moderna led the group Monday after the company reported positive data in its early-stage human trial for a coronavirus vaccine. That news kicked off a rally in the S&P 500.

However, Wald is placing his bets on another health-care name.

AbbVie is a standout in our work. The stock reversed a two-year downtrend last November before falling victim to indiscriminate market selling in March. We think that long-term reversal is resuming higher now that market conditions are firming,” said Wald.

Nancy Tengler, chief investment officer at Laffer Tengler Investments, is also bullish on AbbVie, and on Johnson & Johnson.

“We own Johnson & Johnson which declared their vaccine news, the initial news, on Feb. 12 and then found the lead candidate for the vaccine on March 30. We liked that company before Covid, but it is certainly well-positioned along with AbbVie and Amgen,” Tengler said during the same segment.

AbbVie and Johnson & Johnson are positive this year, while Amgen is down 3%. 

“Valuation led us to this group. Politics were not in favor of this group last year and I think that’s gone away as we all strive to find a vaccine,” said Tengler.

SOURCE: CNBC Trading Nation