HEALTHCARE (XLV)

Healthcare performed terribly in 2023 and 2024, falling while the market was soaring. Year-to-date, the sector has outperformed. Is it time to focus on the stocks and ETFs of this low-Beta sector as volatility rises quickly?

Large cap biopharma and MedTech stocks are leading the healthcare sector higher.

The top-performing sector last week was financials, they closed up over 2.8% on the week at their highest weekly and monthly level in history.

The stock fell over 7% on Thursday after reports that federal health officials under the Trump administration are re-evaluating Moderna's $590 million contract for bird flu vaccine development.

Many analysts are feeling better about the prospects for healthcare stocks in 2025.

We’re starting to see money flows into more defensive sectors of the market. This is rather concerning in the near-term. 

Robert F. Kennedy Jr.'s appointment as Secretary of Health and Human Services has sparked concerns over funding for the NIH.

The company said its medical-surgical segment struggled with ongoing stapling market pressures and temporary shifts in U.S. distributor buying patterns.

It’s too early to account for the rally but in general one can say that there is a lot of speculation from both the retail side and hedge funds.

Robert F. Kennedy Jr. has taken office as HHS secretary, which could impact the healthcare sector, including ETFs with exposure to insurers like UnitedHealth and Elevance Health.

Momentum stocks are leading the market higher, but this is much different leadership than what elevated the market in 2024.

CEO Stéphane Bancel said the company remains focused on driving sales and achieving up to 10 product approvals by 2027, as well as removing nearly $1 billion in costs by the end of this year.

Analysts largely believe that the company’s Aetna insurance business is set to rebound and its margins will recover soon.