Hey, Tim Sykes here:
I just put together an urgent new presentation that you need to see right away.
In short: I believe we are mere days away from a critical announcement from a key tech leader…
One that will officially ignite “AI 2.0” – and potentially send a whole new class of stocks soaring.
But here’s the most important part:
Buying the popular stocks that won big during AI 1.0 are NOT the best way to leverage what’s coming.
As you’ll see in the presentation, I’ve pinpointed a new, unique AI play that’s been doing gangbusters…
I’m talking about gains of 48%...
- 50%...
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- 62%...
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- 70%...
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- 79%...
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- 90%...
- 92%...
- 103%...
- 104%...
- 117%...
- 130%...
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And you know what’s even wilder?
All those wins happened in February and March 2025, when markets were going HAYWIRE thanks to tariffs, trade wars, and massive economic uncertainty.
Which tells me one thing…
Once this catalyst kicks off the AI 2.0 boom… watch out.
Of course, nothing is guaranteed in the stock market. I can’t promise any returns or against losses…
But I’ve put EVERYTHING you need to know in this presentation: Exactly what this looming catalyst is…
How to leverage this one-of-a-kind AI play…
And the ONE move you can make today to make sure you’re in front of this massive opportunity.
It’s all waiting for you on this page right here.
-Tim Sykes
5 Healthcare Plays Powering the Sector's Big Comeback
Written by Ryan Hasson. Published 10/9/2025.
Key Points
- After years of lagging, the healthcare sector is showing signs of a turnaround driven by lower rates, policy clarity, and renewed investor interest.
- A landmark deal between President Trump and Pfizer to lower drug prices under Medicaid sparked a sharp rally in the sector and boosted optimism for broader reform.
- With improving fundamentals and technical strength, major players like Pfizer, Eli Lilly, Merck, and UnitedHealth could lead the next leg higher for healthcare stocks.
After years of underperformance, the healthcare sector may finally be waking up. The Health Care Select Sector SPDR Fund (NYSEARCA: XLV), which tracks the largest U.S. healthcare companies, has returned just 7% over the past three years and 8.5% over the last five years, lagging the broader market. Even this year, XLV is up only 5.2% year-to-date, again trailing the S&P 500.
But a new wave of catalysts could change that narrative. Between the prospect of lower interest rates, a significant policy breakthrough on drug pricing, and renewed investor appetite for defensive, high-yielding sectors, healthcare may be positioned for a long-awaited turnaround.
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Lower rates typically benefit dividend-paying, defensive names. As borrowing costs fall, capital often flows back toward stable, income-generating assets — the type of companies that dominate healthcare. With policy clarity and improving fundamentals, the setup for a sector-wide rebound looks increasingly compelling.
And this time, the spark came from a headline few saw coming.
A Policy Breakthrough Ignites the Sector
Healthcare stocks rallied after President Donald Trump and Pfizer announced a landmark deal to lower prescription drug prices under Medicaid in exchange for tariff relief.
Investors welcomed the agreement as more balanced than punitive. XLV jumped more than 5% in just two sessions — its best two-day performance since November 2020, when early vaccine optimism lifted the sector.
The new Most-Favored-Nation (MFN) pricing framework ties U.S. Medicaid drug prices to the lowest prices paid by other developed nations. It's designed to lower costs for patients without collapsing pharmaceutical margins. In exchange for a three-year tariff exemption, Pfizer agreed to extend MFN pricing to all U.S. Medicaid programs, offer discounts of up to 80% on select medications, repatriate foreign profits, and invest roughly $70 billion to expand U.S. manufacturing capacity. The company also joined TrumpRx.gov, a federal platform intended to give Americans direct access to lower-cost medications.
The deal provides much-needed clarity after years of regulatory uncertainty and could pave the way for similar agreements with other major players. What was once viewed as a looming policy risk may now evolve into a manageable, growth-friendly framework.
Amid this optimism, several healthcare names have emerged as both high-yield opportunities and long-term value plays for investors betting on a sustained recovery.
Pfizer: Momentum Reignited in a Long-Time Laggard
Pfizer Inc. (NYSE: PFE) was the clear winner of the week, with shares soaring more than 15% following the announcement. That was its strongest weekly performance in years. After spending much of 2024 and early 2025 near multi-year lows, the stock is finally showing signs of life.
In Q2 2025, Pfizer beat both revenue and earnings estimates, reporting EPS of $0.78 versus expectations of $0.58. Revenue rose 10.3% year-over-year to $14.65 billion, also above forecasts.
At current levels, the stock presents one of the more compelling value propositions among large-cap pharmaceutical companies. With a forward P/E of about 8.7 and a dividend yield of 6.25%, it combines deep value with reliable income — a potent mix in an evolving rate environment.
After years of stagnation, the policy breakthrough and improving earnings trajectory may have reignited momentum for Pfizer and helped lift sentiment across the sector.
Eli Lilly: A Long-Term Leader Setting Up for Another Breakout
Eli Lilly and Company (NYSE: LLY) remains the sector's growth powerhouse, even after briefly lagging broader market gains this year. The stock is up 8.7% year-to-date and has gained 151% over the past three years, driven by blockbuster demand for its diabetes and obesity treatments.
Technically, Lilly looks bullish. After a 16% surge last week, shares are consolidating just below the key $900 resistance level. A decisive move above that mark could confirm a breakout and continuation of its long-term uptrend following a healthy pullback earlier in the year.
While the dividend yield is modest at 0.71%, Lilly's strength is its consistent innovation and execution. Analysts maintain a Moderate Buy rating, with a consensus target implying more than 11% upside. For investors seeking dependable growth in a sector known for defensive income, Lilly stands out as a leader for the next phase of the healthcare cycle.
UnitedHealth Group: Rebounding Strongly After a Steep Slide
UnitedHealth's recovery has been sharp and decisive. After a difficult start to the year, UnitedHealth Group Incorporated (NYSE: UNH) has rebounded more than 50% from its 52-week low, fueled by renewed institutional interest and a notable vote of confidence from Warren Buffett's Berkshire Hathaway.
Despite remaining in the red year-to-date, UnitedHealth's technicals have improved dramatically. The stock has broken its downtrend, established higher lows, and continues to regain momentum. With strong margins, steady growth, and a dividend yield of 2.45%, the company remains a cornerstone of the healthcare insurance space.
As investors shift back toward stability and yield, UnitedHealth is well positioned to help lead the sector's next leg higher.
Merck: Value, Yield, and a Breakout in the Making
Merck & Co., Inc. (NYSE: MRK) is showing renewed strength after months of consolidation. The stock rallied 13.5% last week, breaking above a multi-month base and reclaiming key resistance near $85, a potential sign that a trend reversal is underway.
In its second quarter, Merck delivered EPS of $2.13, beating estimates by $0.10 on revenue of $15.81 billion. While revenue was slightly below some forecasts, the results reinforced the company's earnings resilience and operational consistency.
With a forward P/E of about 9.27 and a dividend yield of 3.6%, Merck offers both value and income. Analysts expect roughly 20% upside from current levels, with a consensus target near $106.41. If shares can hold momentum above $90, the stock could confirm a long-term bottom and extend its recovery into 2026.
The Healthcare Sector ETF: XLV's Bullish Reversal Gains Steam
For those seeking broad exposure, the Health Care Select Sector SPDR Fund (NYSEARCA: XLV) remains the most efficient way to play the recovery theme. The ETF, with a 1.68% dividend yield, provides diversified exposure to sector leaders such as Eli Lilly, Johnson & Johnson, UnitedHealth, Merck, Amgen, Pfizer, and AbbVie.
Last week, XLV closed up nearly 7%, breaking above its 200-day moving average — a strong technical signal that sector momentum is shifting. On a longer-term monthly chart, XLV has confirmed a higher low near $130, setting the stage for a potential retest of resistance around $150.
If the ETF can hold above that level, a move toward its all-time high near $160 looks increasingly plausible. For investors seeking a balance of value, growth, and income, XLV offers a straightforward, diversified way to capture the sector's resurgence.
Healthcare Enters a New Stage of Strength
After years of lagging the broader market, healthcare may be entering a new phase of strength. Falling interest rates, a more constructive policy backdrop, and improving fundamentals across major players are combining to reignite investor interest.
Pfizer's deal may have been the immediate catalyst, but the broader takeaway is clear: sentiment toward healthcare stocks has shifted. What was once viewed as a politically burdened, slow-growth sector is reemerging as a value-driven, income-generating opportunity with meaningful upside potential.
For investors positioning for a potential multi-year recovery, Pfizer, Merck, and UnitedHealth stand out for value and yield, while Eli Lilly offers growth leadership. For those who prefer simplicity and diversification, XLV remains the go-to vehicle to capture the sector's resurgence.
After years in the shadows, healthcare might finally be ready to challenge for leadership — and for long-term investors, that could make now a timely opportunity to buy and hold.
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