Sisi Chan

Investors quietly pile into a group of stocks for 2026 (it’s not tech)

Key Points: Contrary to expectations, healthcare stocks have been silently outpacing technology since mid-2025. Major drivers include robust earnings, active M&A, and less regulatory scrutiny. Meanwhile, despite tech’s prevalent position in the S&P 500, investors are favoring healthcare.

Limelight Alpha Sector Ranking (December 27, 2025): An image analysis of large cap stocks sector scores indicates a notable shift towards the healthcare industry.

Diversification isn’t a bad thing, and healthcare could be the sector to target in 2026: The imbalance between investments in technology and healthcare stocks has been brought into question. With a booming tech sector, healthcare stocks’ underweight status warrants reconsideration as a diversification tactic in 2026.

Ranking data shows quiet shift toward healthcare: The author’s sector model, which ranks different sectors, has recently witnessed an increasing interest towards healthcare stocks, despite regulatory scrutiny. A list of healthcare stocks has been rallying since June.

Is it too late to buy healthcare stocks? Contrary to latecomer’s apprehensions, historical data suggests that healthcare thrives in the late stages of the economy. Buying healthcare stocks before the economy hits turbulent times allows investors to seek safer choices in time.

About the authors: The article is authored by Todd Campbell and Daniel Kline, who bring their considerable experience and expertise to TheStreet.com.