Lilly(US:LLY) 智通财经网·2025-08-07 22:25Core Viewpoint - The healthcare sector in the S&P 500 has been underperforming since 2025, but it may be on the verge of a rebound as negative factors are being digested [1] Group 1: Sector Performance - The Health Care Select Sector SPDR Fund (XLV.US) has declined by 3.7% year-to-date, significantly underperforming the S&P 500's 7.1% gain during the same period [1] - Major healthcare companies, including UnitedHealth (UNH.US), Cigna (CI.US), and Humana (HUM.US), are facing stock price pressure due to soaring reimbursement costs [1] - Pharmaceutical companies are also under pressure from policy changes and cost increases, including ongoing drug price reforms and potential tariffs [1] Group 2: Positive Signals - The XLV ETF is stabilizing around $132.50, close to the technical support level of $130 that has attracted buying interest since April [2] - The healthcare sector has maintained a long-term upward trend since 2009, suggesting that current adjustments may provide a buying opportunity for long-term investors [2] - Pfizer (PFE.US) saw a 4% increase in stock price after reporting earnings that exceeded market expectations, while Merck (MRK.US) managed to hold its stock price above the $77 support level despite sales adjustments [2] Group 3: Valuation and Growth Potential - The forward P/E ratio for the healthcare ETF is currently at 16 times, significantly lower than the S&P 500's 22 times, representing a 27% discount, which is nearly double the average discount over the past decade [2] - The healthcare sector is expected to achieve an average annual earnings growth rate of 11% over the next two years, driven by rapid expansion in the obesity drug market and strong performance from medical device companies [2] Group 4: Analyst Insights - Adam Parker, Chief Analyst at Trivariate Research, expressed optimism about the sector, stating that the earnings expectations for the healthcare industry are more achievable than average [3]