
Last year wasn’t kind to the health care sector. That corner of the market, which includes Big Pharma mainstays such as Eli Lilly (NYSE: LLY), Johnson & Johnson (NYSE: JNJ), and AbbVie (NYSE: ABBV), finished dead last among the S&P 500’s 11 sectors with a meager 2.6% gain.
However, as investors’ concerns about elevated AI stock valuations and a potentially looming bubble continue to fuel a rotation out of tech and into cyclical sectors, stocks that call the healthcare sector home could see inflows as 2026 gets underway.