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Healthcare stocks rally as XLV rises 10% through September 30

ETF Trends said the Health Care Select Sector SPDR ETF, or XLV, gained 10% through September 30 and healthcare was the S&P 500’s third best sector year-to-date.

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Healthcare stocks have moved back to the forefront as investors rotate away from concentrated technology exposure, with ETF Trends pointing to a broad rebound across the sector. The article highlights that healthcare ranked third best among S&P 500 sectors for both the third quarter and year-to-date.

ETF Trends said the Health Care Select Sector SPDR ETF, XLV, rose 10% through September 30. The piece attributes the rally to improving pharmaceutical fundamentals, a biotech revival, historically favorable entry valuations, and systematic portfolio rebalancing away from concentrated tech positions and high-flying AI valuations.

The article also cites valuation and earnings support for the turnaround. It says State Street data showed healthcare’s forward P/E multiple relative to the broader market fell to the lowest quintile of its 15-year historical range, and it notes healthcare companies posted an 18.1% adjusted upside earnings surprise in Q2, the largest bottom-line beat among all 11 sectors.

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