Sector AnalysisETF: XLVUpdated Jun 21, 2026

Healthcare Sector Stocks

Healthcare spans pharma, biotech, managed care, hospitals, medical devices, and life sciences tools. It blends defensive cash flows with long-duration innovation — mature drug businesses offer stability while biotech and medtech carry higher upside and execution risk. Tracked by XLK, screening helps separate steady compounders from trial-driven stories.

Explore Screener Review Valuations Full Screener →

Research ByVCP Scanner Editorial Team

Performance Dashboard

How the Healthcare Sector sector has traded against the market

Track the XLV sector ETF performance vs S&P 500. The basket shows equal-weight returns of top 50 stocks by market cap.

XLV +13.0%SPY +24.4%Basket +31.5%

XLV Sector ETFS&P 500Equal-weight sector basket (top 50)

Top 1M Performers

Momentum

SYRE$88.34

Spyre Therapeutics, Inc.

+26.1%

YTD +189%$30.57B

MOVE$22.53

Corvex, Inc.

+22.2%

YTD +157%$36.69B

NTRA$231.41

Natera, Inc.

+20.2%

YTD +1%$33.14B

HUM$360.65

Humana Inc.

+17.9%

YTD +36%$43.3B

A$127.06

Agilent Technologies, Inc.

+13.3%

YTD -8%$35.89B

Bottom 1M Performers

Pressure

BSX$45.29

Boston Scientific Corporation

-19%

YTD -52%$67.31B

HCA$375.17

HCA Healthcare, Inc.

-11.3%

YTD -20%$83.88B

ONC$270.15

BeOne Medicines Ltd.

-7.8%

YTD -13%$28.87B

ISRG$406.78

Intuitive Surgical, Inc.

-7.5%

YTD -28%$144.48B

TEVA$31.48

Teva Pharmaceutical Industries Limited

-7.5%

YTD +2%$36.66B

Loading performance data...

Live Screener

Rank the Healthcare Sector Stocks with live market and fundamental data

Scan the sector leaders, compare valuations and fundamentals, then open the full screener to refine your criteria.

Quick screens:Large Cap Healthcare→Profitable Healthcare→Dividend Healthcare→Growth Healthcare→

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Compare Top 3 Open Screener

Ticker	Company	Price	Mkt Cap	P/E	ROE	Div Yield
LLY	Eli Lilly and Company	$1098.13	$1.04T	47.8	101.2%	0.5%
JNJ	Johnson & Johnson	$228.39	$550.4B	39.4	20.1%	2.1%
ABBV	AbbVie Inc.	$216.63	$383.17B	91.4	6214.7%	3%
UNH	UnitedHealth Group Incorporated	$400.96	$363.94B	30.3	11.8%	2.2%
MRK	Merck & Co., Inc.	$113.87	$281.25B	15.6	36.9%	2.9%
NVS	Novartis AG	$147.08	$280.64B	20.5	31%	2.7%
AZN	AstraZeneca PLC	$174.93	$271.19B	26.7	22.9%	1.9%
NVO	Novo Nordisk A/S	$43.19	$191.93B	12.2	60.7%	4.1%
AMGN	Amgen Inc.	$337.60	$182.2B	23.7	106.1%	2.8%
TMO	Thermo Fisher Scientific Inc.	$464.61	$172.66B	26.2	13.1%	0.4%
ABT	Abbott Laboratories	$88.38	$153.68B	11.6	30.9%	2.5%
GILD	Gilead Sciences, Inc.	$123.76	$153.66B	18.3	40.7%	2.6%
ISRG	Intuitive Surgical, Inc.	$406.78	$144.48B	51.7	16.6%	—
PFE	Pfizer Inc.	$25.22	$143.46B	18.5	8.9%	6.8%
CVS	CVS Health Corporation	$98.32	$125.45B	70.7	2.3%	2.7%
DHR	Danaher Corporation	$177.17	$125.4B	35.2	7.1%	0.7%
SYK	Stryker Corporation	$307.80	$117.88B	36.6	15.1%	1.1%
VRTX	Vertex Pharmaceuticals Incorporated	$451.63	$114.88B	29.5	22.5%	—
BMY	Bristol-Myers Squibb Company	$54.00	$110.25B	15.7	40.4%	4.6%
SNY	Sanofi	$42.38	$102.35B	18.2	10.4%	5.1%
GSK	GSK plc	$50.67	$101.9B	6.9	39.4%	6.3%
MDT	Medtronic plc	$79.34	$101.86B	22.0	9.4%	3.5%
MCK	McKesson Corporation	$750.63	$90.23B	19.6	—	0.4%
ELV	Elevance Health Inc.	$388.50	$84.37B	15.5	13.3%	1.8%
HCA	HCA Healthcare, Inc.	$375.17	$83.88B	13.2	—	0.8%
CI	Cigna Corporation	$279.27	$73.63B	12.6	14.3%	2.2%
BSX	Boston Scientific Corporation	$45.29	$67.31B	23.3	12.4%	—
REGN	Regeneron Pharmaceuticals, Inc.	$609.94	$63.37B	14.7	14.9%	0.6%
ARGX	argenx SE	$877.72	$54.32B	44.7	20.2%	—
COR	Cencora, Inc.	$271.83	$52.89B	34.1	122.7%	0.8%

LLY

Eli Lilly and Company

$1098.13Price

Mkt Cap$1.04T

P/E47.8

ROE101.2%

Div Yield0.5%

JNJ

Johnson & Johnson

$228.39Price

Mkt Cap$550.4B

P/E39.4

ROE20.1%

Div Yield2.1%

ABBV

AbbVie Inc.

$216.63Price

Mkt Cap$383.17B

P/E91.4

ROE6214.7%

Div Yield3%

UNH

UnitedHealth Group Incorporated

$400.96Price

Mkt Cap$363.94B

P/E30.3

ROE11.8%

Div Yield2.2%

MRK

Merck & Co., Inc.

$113.87Price

Mkt Cap$281.25B

P/E15.6

ROE36.9%

Div Yield2.9%

NVS

Novartis AG

$147.08Price

Mkt Cap$280.64B

P/E20.5

ROE31%

Div Yield2.7%

AZN

AstraZeneca PLC

$174.93Price

Mkt Cap$271.19B

P/E26.7

ROE22.9%

Div Yield1.9%

NVO

Novo Nordisk A/S

$43.19Price

Mkt Cap$191.93B

P/E12.2

ROE60.7%

Div Yield4.1%

AMGN

Amgen Inc.

$337.60Price

Mkt Cap$182.2B

P/E23.7

ROE106.1%

Div Yield2.8%

TMO

Thermo Fisher Scientific Inc.

$464.61Price

Mkt Cap$172.66B

P/E26.2

ROE13.1%

Div Yield0.4%

ABT

Abbott Laboratories

$88.38Price

Mkt Cap$153.68B

P/E11.6

ROE30.9%

Div Yield2.5%

GILD

Gilead Sciences, Inc.

$123.76Price

Mkt Cap$153.66B

P/E18.3

ROE40.7%

Div Yield2.6%

ISRG

Intuitive Surgical, Inc.

$406.78Price

Mkt Cap$144.48B

P/E51.7

ROE16.6%

Div Yield—

PFE

Pfizer Inc.

$25.22Price

Mkt Cap$143.46B

P/E18.5

ROE8.9%

Div Yield6.8%

CVS

CVS Health Corporation

$98.32Price

Mkt Cap$125.45B

P/E70.7

ROE2.3%

Div Yield2.7%

DHR

Danaher Corporation

$177.17Price

Mkt Cap$125.4B

P/E35.2

ROE7.1%

Div Yield0.7%

SYK

Stryker Corporation

$307.80Price

Mkt Cap$117.88B

P/E36.6

ROE15.1%

Div Yield1.1%

VRTX

Vertex Pharmaceuticals Incorporated

$451.63Price

Mkt Cap$114.88B

P/E29.5

ROE22.5%

Div Yield—

BMY

Bristol-Myers Squibb Company

$54.00Price

Mkt Cap$110.25B

P/E15.7

ROE40.4%

Div Yield4.6%

SNY

Sanofi

$42.38Price

Mkt Cap$102.35B

P/E18.2

ROE10.4%

Div Yield5.1%

GSK

GSK plc

$50.67Price

Mkt Cap$101.9B

P/E6.9

ROE39.4%

Div Yield6.3%

MDT

Medtronic plc

$79.34Price

Mkt Cap$101.86B

P/E22.0

ROE9.4%

Div Yield3.5%

MCK

McKesson Corporation

$750.63Price

Mkt Cap$90.23B

P/E19.6

ROE—

Div Yield0.4%

ELV

Elevance Health Inc.

$388.50Price

Mkt Cap$84.37B

P/E15.5

ROE13.3%

Div Yield1.8%

HCA

HCA Healthcare, Inc.

$375.17Price

Mkt Cap$83.88B

P/E13.2

ROE—

Div Yield0.8%

Cigna Corporation

$279.27Price

Mkt Cap$73.63B

P/E12.6

ROE14.3%

Div Yield2.2%

BSX

Boston Scientific Corporation

$45.29Price

Mkt Cap$67.31B

P/E23.3

ROE12.4%

Div Yield—

REGN

Regeneron Pharmaceuticals, Inc.

$609.94Price

Mkt Cap$63.37B

P/E14.7

ROE14.9%

Div Yield0.6%

ARGX

argenx SE

$877.72Price

Mkt Cap$54.32B

P/E44.7

ROE20.2%

Div Yield—

COR

Cencora, Inc.

$271.83Price

Mkt Cap$52.89B

P/E34.1

ROE122.7%

Div Yield0.8%

See all 50 stocks →

Market Comparison

Healthcare Sector vs S&P 500 in one glance

This should answer the only question that matters here: are you getting something better than the market for the price you are paying?

Price vs market

Cheaper

19% below S&P 500 trailing P/E

Quality vs market

Lower quality

Net margin 18.7% vs 25.7%; ROE 40.6% vs 47.7%

Income vs market

Higher yield

Sector yield 1.66% vs 1.00%

Comparison table

Winner should register in under three seconds.

Metric	Healthcare Sector	S&P 500	Delta	Winner
Trailing P/E Sector is cheaper	27.8x	34.5x	-19%	Sector cheaper
Forward P/E Sector is cheaper	18.5x	24.2x	-23%	Sector cheaper
EV/EBITDA Sector is cheaper	16.3x	23.1x	-29%	Sector cheaper
Net Margin Market is stronger	18.7%	25.7%	-27%	S&P 500 stronger
ROE Market is stronger	40.6%	47.7%	-15%	S&P 500 stronger
Dividend Yield Sector is stronger	1.7%	1.0%	+67%	Sector yields more

History check

Is the current premium normal?

1-year contextCheap vs history

38th percentile; range 25.5x to 31.8x

5-year contextAbove normal

71th percentile; range 18.1x to 31.8x

Internal health

Median revenue growth8.7%

Median gross margin65.3%

Median FCF margin16.1%

Against the S&P 500, Healthcare Sector currently trades at 27.8x trailing earnings versus 34.5x for the broad market. That premium only makes sense if investors keep believing the sector deserves better margins, stronger returns on equity, and more durable growth than the index overall.

Industry Breakdown

Where the real weight sits inside Healthcare Sector

These cards are built from the full sector universe, then ranked by market cap so you can see which pockets are leading, rich, resilient, or dangerously concentrated.

Industry Scoreboard

Fast scan of Healthcare Sector industry setups

Use this table to spot heavyweights, cheap pockets, leaders, and genuinely beaten-down areas before opening the detailed cards below.


Large Pharma 21 stocks	45.2% $3.83T	Neutral -3.2% median 3M	Cheap 13.5x median Fwd P/E	High 31.5% median ROE	Weak 3.6% rev growth	Attractive Concentrated
Biotechnology 647 stocks	14.0% $1.18T	Neutral -0.1% median 3M	Fair 19.2x median Fwd P/E	Mixed -55.1% median ROE	Average 7.4% rev growth	Mixed Diversified
Medical Devices 132 stocks	8.9% $754.27B	Lagging -8.2% median 3M	Fair 22.5x median Fwd P/E	Mixed -15.7% median ROE	Average 8.9% rev growth	Mixed Diversified
Health Insurance 12 stocks	8.8% $745.43B	Leading +33.2% median 3M	Fair 26.7x median Fwd P/E	Mixed 5.3% median ROE	Average 11.9% rev growth	Mixed One-name heavy
Diagnostics & Research 53 stocks	7.6% $648.12B	Neutral +1.1% median 3M	Premium 22.7x median Fwd P/E	Mixed -9.1% median ROE	Average 7.4% rev growth	Mixed Concentrated
Medical Instruments 56 stocks	4.7% $398.65B	Neutral +2.0% median 3M	Premium 18.9x median Fwd P/E	Mixed -3.1% median ROE	Weak 8.2% rev growth	Mixed Concentrated
Specialty & Generic Pharma 77 stocks	3.1% $266.9B	Neutral -1.7% median 3M	Cheap 12.9x median Fwd P/E	Mixed -8.1% median ROE	Average 4.5% rev growth	Mixed Diversified
Healthcare Facilities 48 stocks	2.6% $219.44B	Leading +8.9% median 3M	Cheap 15.2x median Fwd P/E	Mixed 5.4% median ROE	Weak 6.8% rev growth	Mixed Concentrated
Medical Distribution 12 stocks	2.5% $209.65B	Lagging -16.4% median 3M	Fair 15.3x median Fwd P/E	Mixed 18.0% median ROE	Average -0.1% rev growth	Mixed One-name heavy
Healthcare IT 51 stocks	1.5% $130.26B	Neutral +5.0% median 3M	Fair 20.6x median Fwd P/E	Mixed -2.8% median ROE	Strong 7.6% rev growth	Watchlist Diversified
Pharmaceuticals 12 stocks	0.6% $52.62B	Lagging -11.2% median 3M	Fair 50.1x median Fwd P/E	Weak -51.5% median ROE	Strong 22.0% rev growth	Broken One-name heavy
Medical Equipment 7 stocks	0.4% $37.41B	Leading +2.7% median 3M	Fair 18.1x median Fwd P/E	Mixed -0.2% median ROE	Average 24.1% rev growth	Mixed One-name heavy
Medical Specialties 1 stocks	0.0% $383M	Leading +21.9% median 3M	Fair - median Fwd P/E	Mixed -35.3% median ROE	Average - rev growth	Mixed One-name heavy

Showing 13 of 13 industries in Healthcare Sector.

Setup is a quick read of value, quality, growth, momentum, and concentration together.

45.2% OF SECTOR

Large Pharma

Cheap vs sectorHigh qualityNeutralWeak growthConcentrated

Large Pharma is a core pocket of healthcare, moving broadly in line with the rest of the sector; growth is softer than the sector average, business quality is stronger than the sector median, and valuation sits below sector norms. Leadership is concentrated in a few names.

Median 3M return

-3.2%

Forward P/E

13.5x

Top 3 weight

51.5%

Market cap

$3.83T

Coverage

21 stocks

Breadth

24% pos. in 3M

Open filtered screener

14.0% OF SECTOR

Biotechnology

Fairly pricedMixed qualityNeutralAverage growthDiversified

Biotechnology is a major pocket of healthcare, moving broadly in line with the rest of the sector; growth is near the sector average, quality signals are mixed, and valuation is close to sector norms.

Median 3M return

-0.1%

Forward P/E

19.2x

Top 3 weight

19.6%

Market cap

$1.18T

Coverage

647 stocks

Breadth

48% pos. in 3M

Open filtered screener

8.9% OF SECTOR

Medical Devices

Fairly pricedMixed qualityLaggingAverage growthDiversified

Medical Devices is a meaningful pocket of healthcare, currently lagging on price action; growth is near the sector average, quality signals are mixed, and valuation is close to sector norms.

Median 3M return

-8.2%

Forward P/E

22.5x

Top 3 weight

49.5%

Market cap

$754.27B

Coverage

132 stocks

Breadth

38% pos. in 3M

Open filtered screener

8.8% OF SECTOR

Health Insurance

Fairly pricedMixed qualityLeadingAverage growthOne-name heavy

Health Insurance is a meaningful pocket of healthcare, still leading on price action; growth is near the sector average, quality signals are mixed, and valuation is close to sector norms. Leadership is extremely concentrated in one or two names.

Median 3M return

+33.2%

Forward P/E

26.7x

Top 3 weight

77.0%

Market cap

$745.43B

Coverage

12 stocks

Breadth

92% pos. in 3M

Open filtered screener

7.6% OF SECTOR

Diagnostics & Research

Premium vs sectorMixed qualityNeutralAverage growthConcentrated

Diagnostics & Research is a meaningful pocket of healthcare, moving broadly in line with the rest of the sector; growth is near the sector average, quality signals are mixed, and valuation still carries a premium. Leadership is concentrated in a few names.

Median 3M return

+1.1%

Forward P/E

22.7x

Top 3 weight

52.9%

Market cap

$648.12B

Coverage

53 stocks

Breadth

55% pos. in 3M

Open filtered screener

4.7% OF SECTOR

Medical Instruments

Premium vs sectorMixed qualityNeutralWeak growthConcentrated

Medical Instruments is a smaller pocket of healthcare, moving broadly in line with the rest of the sector; growth is softer than the sector average, quality signals are mixed, and valuation still carries a premium. Leadership is concentrated in a few names.

Median 3M return

+2.0%

Forward P/E

18.9x

Top 3 weight

57.2%

Market cap

$398.65B

Coverage

56 stocks

Breadth

54% pos. in 3M

Open filtered screener

3.1% OF SECTOR

Specialty & Generic Pharma

Cheap vs sectorMixed qualityNeutralAverage growthDiversified

Specialty & Generic Pharma is a smaller pocket of healthcare, moving broadly in line with the rest of the sector; growth is near the sector average, quality signals are mixed, and valuation sits below sector norms.

Median 3M return

-1.7%

Forward P/E

12.9x

Top 3 weight

47.0%

Market cap

$266.9B

Coverage

77 stocks

Breadth

47% pos. in 3M

Open filtered screener

2.6% OF SECTOR

Healthcare Facilities

Cheap vs sectorMixed qualityLeadingWeak growthConcentrated

Healthcare Facilities is a smaller pocket of healthcare, still leading on price action; growth is softer than the sector average, quality signals are mixed, and valuation sits below sector norms. Leadership is concentrated in a few names.

Median 3M return

+8.9%

Forward P/E

15.2x

Top 3 weight

51.2%

Market cap

$219.44B

Coverage

48 stocks

Breadth

66% pos. in 3M

Open filtered screener

2.5% OF SECTOR

Medical Distribution

Fairly pricedMixed qualityLaggingAverage growthOne-name heavy

Medical Distribution is a smaller pocket of healthcare, currently lagging on price action; growth is near the sector average, quality signals are mixed, and valuation is close to sector norms. Leadership is extremely concentrated in one or two names.

Median 3M return

-16.4%

Forward P/E

15.3x

Top 3 weight

93.2%

Market cap

$209.65B

Coverage

12 stocks

Breadth

36% pos. in 3M

Open filtered screener

1.5% OF SECTOR

Healthcare IT

Fairly pricedMixed qualityNeutralStrong growthDiversified

Healthcare IT is a smaller pocket of healthcare, moving broadly in line with the rest of the sector; growth is running above sector norms, quality signals are mixed, and valuation is close to sector norms.

Median 3M return

+5.0%

Forward P/E

20.6x

Top 3 weight

50.4%

Market cap

$130.26B

Coverage

51 stocks

Breadth

52% pos. in 3M

Open filtered screener

0.6% OF SECTOR

Pharmaceuticals

Fairly pricedWeak qualityLaggingStrong growthOne-name heavy

Pharmaceuticals is a smaller pocket of healthcare, currently lagging on price action; growth is running above sector norms, quality metrics trail the sector median, and valuation is close to sector norms. Leadership is extremely concentrated in one or two names.

Median 3M return

-11.2%

Forward P/E

50.1x

Top 3 weight

97.2%

Market cap

$52.62B

Coverage

12 stocks

Breadth

25% pos. in 3M

Open filtered screener

0.4% OF SECTOR

Medical Equipment

Fairly pricedMixed qualityLeadingAverage growthOne-name heavy

Medical Equipment is a smaller pocket of healthcare, still leading on price action; growth is near the sector average, quality signals are mixed, and valuation is close to sector norms. Leadership is extremely concentrated in one or two names.

Median 3M return

+2.7%

Forward P/E

18.1x

Top 3 weight

88.4%

Market cap

$37.41B

Coverage

7 stocks

Breadth

57% pos. in 3M

Open filtered screener

Showing top 12 of 13 industries

Sector Outlook

Healthcare Sector Outlook - Q1 2026

Updated Q1 2026

Healthcare enters 2026 with a mixed setup. Large-cap pharma and managed care provide cash flow stability, while biotech depends on funding conditions, catalysts, and M&A appetite.

Procedure volumes, GLP-1 demand shifts, and hospital labor normalization are key drivers for providers and devices. Watch drug pricing policy and patent replacement pipelines for large incumbents.

The best opportunities usually come from segment selection, not broad sector timing. Quality compounders and speculative clinical-stage names coexist, so discipline on valuation matters.

Earnings Calendar

Upcoming Earnings in Healthcare Sector

Earnings reports are the biggest near-term catalysts for sector moves. Track which names report in the next 60 days and size your positions accordingly.

No earnings in the next 60 days

Check individual stock pages for the latest earnings dates and estimated EPS.

Learn

Understanding the Healthcare Sector Sector

What Is the Healthcare Sector?

Healthcare under GICS groups companies tied to medicine, patient care, diagnostics, life sciences, or health insurance — from large pharma and biotech to hospital systems, device makers, and health tech vendors.

Drug makers and insurers are valued on cash flow and pricing power. Biotech and devices are more about pipeline quality and product adoption. XLV gives a large-cap snapshot, but the full sector has a wider range of business models.

How to Invest in Healthcare Stocks

XLV offers broad exposure to established healthcare leaders. Stock selection is more useful for targeted pharma, managed care, device, or biotech exposure.

Key risks: regulation, reimbursement changes, patent cliffs, trial failures, and utilization shifts. In defensive phases, investors favor insurers and large-cap pharma. In risk-on phases, biotech pipelines and high-growth medtech get attention.

Use the screener to separate recurring cash flow businesses from binary-event stories. Margin stability, balance sheet strength, and valuation work best when compared within the right sub-group.

Explore Further

Related Themes & Screens in Healthcare Sector

ThemeBiotech Healthcare

Frequently Asked Questions

Healthcare includes pharma, biotech, insurers, hospitals, device makers, diagnostics, and life sciences tools. The screener above shows the live sector list with sortable data.

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