As the S&P 500 seeks the next leg higher, smart money might be moving toward healthcare, a sleeper sector of 2026.
While technology valuations trade at a premium to historical averages, healthcare has remained a relative laggard. Despite BlackRock’s optimism in January, after the first third of the year, the sector has underperformed. The Vanguard Health Care Index Fund (NYSE:VHT) is down 5.50% year-to-date.
Still, the series of earnings upgrades, coupled with an AI-driven drug-discovery tailwind, suggests the sector is no longer just a defensive play. It is shaping into a growth engine that the broad market is yet to fully acknowledge.
The April Surge
The latest earnings cycle confirms the shift. On Tuesday, UnitedHealth (NYSE:UNH) raised full-year guidance following a strong first quarter. Despite short-term pressure, the fundamental outlook for the leading insurer continues to strengthen as it integrates advanced analytics into its claim processing.
Meanwhile, on Thursday, Eli …
This post was originally published here
