Obesity, M&A, Biotech Revival: A 2026 Guide to Health Stocks (1)

The health-care corner of the US equity market has traditionally been viewed as defensive, thanks to steady growth and healthy dividend yields among the industry’s stalwarts. That narrative is changing.

Following years of underperformance relative to the broader market, health care staged a turnaround last quarter, posting the best performance among the 11 major industry groups in the S&P 500 Index.

The sharp about face followed tariff deals with the Trump administration, a flurry of acquisitions and prospects for next-generation obesity drugs. Meanwhile, concerns over high-flying tech stocks made downtrodden sectors like health care look more attractive for those looking ...