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.
Sector AnalysisETF: XLVUpdated May 6, 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.
Research ByVCP Scanner Editorial Team
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| Ticker | Company | Price | Mkt Cap | P/E | ROE | Div Yield | |
|---|---|---|---|---|---|---|---|
| DBV Technologies S.A. | $19.49 | $1669.52T | -0.7 | -150.3% | — | ||
| Eli Lilly and Company | $988.19 | $933.66B | 43.1 | 101.2% | 0.6% | ||
| Johnson & Johnson | $225.59 | $543.64B | 39.0 | 20.1% | 2.2% | ||
| AbbVie Inc. | $206.15 | $364.63B | 87.0 | 6214.7% | 3.2% | ||
| UnitedHealth Group Incorporated | $363.87 | $330.28B | 27.5 | 11.8% | 2.4% | ||
| AstraZeneca PLC | $181.24 | $280.97B | 27.7 | 22.9% | 1.8% | ||
| Merck & Co., Inc. | $113.16 | $279.49B | 15.5 | 36.9% | 2.9% | ||
| Novartis AG | $145.50 | $277.63B | 20.2 | 31% | 2.8% | ||
| Amgen Inc. | $329.59 | $177.87B | 23.2 | 106.1% | 2.9% | ||
| Thermo Fisher Scientific Inc. | $466.76 | $173.46B | 26.3 | 13.1% | 0.4% | ||
| Gilead Sciences, Inc. | $133.48 | $166.32B | 351.3 | 2.3% | 2.3% | ||
| Intuitive Surgical, Inc. | $451.38 | $160.32B | 57.4 | 16.6% | — | ||
| Abbott Laboratories | $87.17 | $151.59B | 11.4 | 30.9% | 2.5% | ||
| Novo Nordisk A/S | $44.89 | $151.36B | 12.5 | 58.4% | 3.9% | ||
| Pfizer Inc. | $26.44 | $150.4B | 19.4 | 8.9% | 6.5% | ||
| Danaher Corporation | $174.63 | $123.6B | 34.6 | 7.1% | 0.7% | ||
| Bristol-Myers Squibb Company | $56.92 | $116.22B | 16.5 | 40.4% | 4.3% | ||
| Stryker Corporation | $295.25 | $113.08B | 35.1 | 15.1% | 1.1% | ||
| Vertex Pharmaceuticals Incorporated | $424.36 | $107.94B | 27.7 | 22.5% | — | ||
| Sanofi | $43.36 | $104.72B | 18.3 | 10.4% | 5.1% | ||
| CVS Health Corporation | $80.69 | $102.56B | 58.1 | 2.3% | 3.3% | ||
| GSK plc | $50.38 | $101.32B | 6.7 | 39.4% | 6.5% | ||
| Medtronic plc | $77.79 | $99.73B | 21.5 | 9.4% | 3.6% | ||
| McKesson Corporation | $801.01 | $98.11B | 31.1 | — | 0.3% | ||
| HCA Healthcare, Inc. | $428.79 | $95.86B | 15.1 | — | 0.7% | ||
| Boston Scientific Corporation | $55.98 | $83.2B | 28.9 | 12.4% | — | ||
| Elevance Health Inc. | $369.07 | $80.15B | 14.7 | 13.3% | 1.9% | ||
| Regeneron Pharmaceuticals, Inc. | $702.33 | $72.97B | 16.9 | 14.9% | 0.5% | ||
| Cigna Corporation | $275.66 | $72.68B | 12.4 | 14.3% | 2.2% | ||
| Cencora, Inc. | $305.90 | $59.5B | 38.4 | 122.7% | 0.7% |
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
15% below S&P 500 trailing P/E
Quality vs market
Mixed quality
Net margin 18.8% vs 24.3%; ROE 40.0% vs 44.1%
Income vs market
Higher yield
Sector yield 1.70% vs 0.99%
Comparison table
Winner should register in under three seconds.
| Metric | Healthcare Sector | S&P 500 | Delta | Winner |
|---|---|---|---|---|
Trailing P/E Sector is cheaper | 28.4x | 33.6x | -15% | Sector cheaper |
Forward P/E Sector is cheaper | 17.7x | 24.4x | -28% | Sector cheaper |
EV/EBITDA Sector is cheaper | 16.4x | 22.0x | -25% | Sector cheaper |
Net Margin Market is stronger | 18.8% | 24.3% | -23% | S&P 500 stronger |
ROE Market is stronger | 40.0% | 44.1% | -9% | S&P 500 stronger |
Dividend Yield Sector is stronger | 1.7% | 1.0% | +72% | Sector yields more |
History check
Is the current premium normal?
1-year contextNear normal
47th percentile; range 25.5x to 31.8x
5-year contextAbove normal
76th percentile; range 18.1x to 31.8x
Internal health
Median revenue growth8.1%
Median gross margin65.8%
Median FCF margin16.2%
Against the S&P 500, Healthcare Sector currently trades at 28.4x trailing earnings versus 33.6x 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.
Biotechnology 647 stocks | 99.6% $1670.67T | Neutral +4.7% median 3M | Fair 22.6x median Fwd P/E | Mixed -53.2% median ROE | Average 10.2% rev growth | Mixed One-name heavy |
Large Pharma 21 stocks | 0.2% $3.69T | Neutral -5.5% median 3M | Cheap 11.7x median Fwd P/E | High 31.5% median ROE | Weak 3.1% rev growth | Attractive Concentrated |
Medical Devices 132 stocks | 0.0% $717.43B | Lagging -7.8% median 3M | Fair 20.1x median Fwd P/E | Mixed -13.9% median ROE | Average 9.2% rev growth | Mixed Diversified |
Health Insurance 12 stocks | 0.0% $660.39B | Leading +9.9% median 3M | Fair 23.3x median Fwd P/E | Mixed 5.3% median ROE | Average 11.9% rev growth | Mixed One-name heavy |
Diagnostics & Research 53 stocks | 0.0% $625.27B | Lagging -9.1% median 3M | Premium 21.4x median Fwd P/E | Mixed -10.5% median ROE | Weak 7.4% rev growth | Broken Concentrated |
Medical Instruments 56 stocks | 0.0% $415.89B | Lagging -4.0% median 3M | Premium 21.9x median Fwd P/E | Mixed -2.4% median ROE | Weak 7.6% rev growth | Broken Concentrated |
Specialty & Generic Pharma 77 stocks | 0.0% $295.34B | Neutral -3.6% median 3M | Cheap 15.3x median Fwd P/E | Mixed -10.1% median ROE | Strong 6.3% rev growth | Attractive Diversified |
Healthcare Facilities 48 stocks | 0.0% $224.68B | Neutral +5.4% median 3M | Cheap 17.0x median Fwd P/E | Mixed 6.8% median ROE | Average 7.1% rev growth | Mixed Concentrated |
Medical Distribution 12 stocks | 0.0% $216.4B | Lagging -13.2% median 3M | Fair 17.4x median Fwd P/E | Mixed 18.1% median ROE | Weak 1.4% rev growth | Broken One-name heavy |
Healthcare IT 51 stocks | 0.0% $126.33B | Neutral +8.3% median 3M | Fair 18.5x median Fwd P/E | High -4.2% median ROE | Strong 6.6% rev growth | Watchlist Diversified |
Pharmaceuticals 12 stocks | 0.0% $65.85B | Leading +10.9% median 3M | Fair 53.1x median Fwd P/E | Weak -71.3% median ROE | Strong 10.7% rev growth | Watchlist One-name heavy |
Medical Equipment 7 stocks | 0.0% $35.66B | Lagging -7.6% median 3M | Fair 15.6x median Fwd P/E | High 5.7% median ROE | Average 9.4% rev growth | Watchlist One-name heavy |
Medical Specialties 1 stocks | 0.0% $266M | Neutral +2.8% median 3M | Fair - median Fwd P/E | Mixed - 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.
99.6% OF SECTOR
Biotechnology
Fairly pricedMixed qualityNeutralAverage growthOne-name heavy
Biotechnology is a core 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. Leadership is extremely concentrated in one or two names.
Median 3M return
+4.7%
Forward P/E
22.6x
Top 3 weight
99.9%
Market cap
$1670.67T
Coverage
647 stocks
Breadth
57% pos. in 3M
Open filtered screener
0.2% OF SECTOR
Large Pharma
Cheap vs sectorHigh qualityNeutralWeak growthConcentrated
Large Pharma is a smaller 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
-5.5%
Forward P/E
11.7x
Top 3 weight
50.0%
Market cap
$3.69T
Coverage
21 stocks
Breadth
24% pos. in 3M
Open filtered screener
0.0% OF SECTOR
Medical Devices
Fairly pricedMixed qualityLaggingAverage growthDiversified
Medical Devices 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.
Median 3M return
-7.8%
Forward P/E
20.1x
Top 3 weight
50.8%
Market cap
$717.43B
Coverage
132 stocks
Breadth
39% pos. in 3M
Open filtered screener
0.0% OF SECTOR
Health Insurance
Fairly pricedMixed qualityLeadingAverage growthOne-name heavy
Health Insurance 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
+9.9%
Forward P/E
23.3x
Top 3 weight
77.7%
Market cap
$660.39B
Coverage
12 stocks
Breadth
67% pos. in 3M
Open filtered screener
0.0% OF SECTOR
Diagnostics & Research
Premium vs sectorMixed qualityLaggingWeak growthConcentrated
Diagnostics & Research is a smaller pocket of healthcare, currently lagging on price action; 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
-9.1%
Forward P/E
21.4x
Top 3 weight
54.7%
Market cap
$625.27B
Coverage
53 stocks
Breadth
29% pos. in 3M
Open filtered screener
0.0% OF SECTOR
Medical Instruments
Premium vs sectorMixed qualityLaggingWeak growthConcentrated
Medical Instruments is a smaller pocket of healthcare, currently lagging on price action; 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
-4.0%
Forward P/E
21.9x
Top 3 weight
59.8%
Market cap
$415.89B
Coverage
56 stocks
Breadth
41% pos. in 3M
Open filtered screener
0.0% OF SECTOR
Specialty & Generic Pharma
Cheap vs sectorMixed qualityNeutralStrong growthDiversified
Specialty & Generic Pharma 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 sits below sector norms.
Median 3M return
-3.6%
Forward P/E
15.3x
Top 3 weight
47.9%
Market cap
$295.34B
Coverage
77 stocks
Breadth
42% pos. in 3M
Open filtered screener
0.0% OF SECTOR
Healthcare Facilities
Cheap vs sectorMixed qualityNeutralAverage growthConcentrated
Healthcare Facilities 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. Leadership is concentrated in a few names.
Median 3M return
+5.4%
Forward P/E
17.0x
Top 3 weight
55.3%
Market cap
$224.68B
Coverage
48 stocks
Breadth
60% pos. in 3M
Open filtered screener
0.0% OF SECTOR
Medical Distribution
Fairly pricedMixed qualityLaggingWeak growthOne-name heavy
Medical Distribution is a smaller pocket of healthcare, currently lagging on price action; growth is softer than 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
-13.2%
Forward P/E
17.4x
Top 3 weight
94.3%
Market cap
$216.4B
Coverage
12 stocks
Breadth
33% pos. in 3M
Open filtered screener
0.0% OF SECTOR
Healthcare IT
Fairly pricedHigh 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, business quality is stronger than the sector median, and valuation is close to sector norms.
Median 3M return
+8.3%
Forward P/E
18.5x
Top 3 weight
52.7%
Market cap
$126.33B
Coverage
51 stocks
Breadth
60% pos. in 3M
Open filtered screener
0.0% OF SECTOR
Pharmaceuticals
Fairly pricedWeak qualityLeadingStrong growthOne-name heavy
Pharmaceuticals is a smaller pocket of healthcare, still leading 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
+10.9%
Forward P/E
53.1x
Top 3 weight
97.7%
Market cap
$65.85B
Coverage
12 stocks
Breadth
58% pos. in 3M
Open filtered screener
0.0% OF SECTOR
Medical Equipment
Fairly pricedHigh qualityLaggingAverage growthOne-name heavy
Medical Equipment is a smaller pocket of healthcare, currently lagging on price action; growth is near the sector average, business quality is stronger than the sector median, and valuation is close to sector norms. Leadership is extremely concentrated in one or two names.
Median 3M return
-7.6%
Forward P/E
15.6x
Top 3 weight
90.5%
Market cap
$35.66B
Coverage
7 stocks
Breadth
29% pos. in 3M
Open filtered screener
Showing top 12 of 13 industries
Sector Outlook
Healthcare Sector Outlook - Q1 2026
Updated Q1 2026
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.
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