These Healthcare Stocks Have Risen More Than 10% Over the Past Month
After a long period of underperformance, the healthcare sector is back on investors’ radar. While the broader U.S. market was virtually flat over the past month, several large healthcare stocks posted double-digit gains. Their rise was not driven by one shared trend, but by a combination of better-than-expected results, easing cost pressures, and a shift in capital toward more defensive market segments. Which companies are driving the rally, and how sustainable is their growth?
Key points
While the S&P 500 index was virtually flat over the past month, six large healthcare stocks gained more than 10%. Is this the beginning of a long-term turnaround, or merely a short-term shift of capital out of technology?
The three largest U.S. health insurers are beginning to overcome the problems that have weighed on their stocks for a long time. But better results and rising profitability mask risks that could significantly slow further growth.
One company beat analysts’ earnings-per-share expectations by nearly 50%. On closer inspection, however, a substantial part of the surprise came from outside its ordinary operations.
Two technologically advanced healthcare companies rose more than 10% in a month, even though they remain well below their previous highs. Is the current recovery an opportunity, or does their valuation already assume an overly optimistic scenario?
Analysts see nearly 20% further upside for one stock, while another has only around 3%. Yet both rose at a similar pace over the past month. The difference lies in valuations and expectations for future earnings.
Healthcare was among the least popular U.S. market sectors over the past two years. Investors left for artificial intelligence stories, while health insurers grappled with record care costs, medical technology manufacturers with tariffs and operational problems, and pharmaceutical companies with political pressure on drug prices. But October 2026 brought a marked change in sentiment. From the end of September through October 26, the sector fund $XLV (we analyzed the top-performing healthcare ETFs in this analysis) gained 6.5%, while the S&P 500 index (as measured by the $SPY fund) added just 0.4%.
Under the surface of the sector’s gains, individual stocks have made an even stronger move. Six large companies from different parts of healthcare gained more than 10% over the same period. They include a leader in obesity treatment, three health insurers, a pioneer in robotic surgery, and a manufacturer of orthopedic implants and hospital equipment. This group is particularly interesting to investors because each company represents a different investment thesis and a different type of risk.
The broader market context also matters. As investors begin to question technology-stock valuations, capital is shifting toward sectors with more predictable earnings. Healthcare fits this profile. The key, however, is to distinguish a genuine fundamental turnaround from a bounce off oversold levels that could fizzle out just as quickly.