Report published July 28, 2026

J.P. Morgan Equity Thematic Strategy: Healthcare Recovery and Growth Outlook

J.P. Morgan · July 28, 2026

Healthcare offers a rare combination of durable growth, attractive relative valuation, and accelerating earnings potential for 2027. It remains under-owned and is positioned to benefit as investors seek to diversify away from crowded AI themes.

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Finvaulta summarizes J.P. Morgan's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.

Key Takeaways

1.Healthcare is a durable growth, technology-like profitability, and attractively valued sector that is currently under-owned.
2.The sector is approaching a durable inflection point with earnings growth projected to accelerate from -1% in 2026 to +22% in 2027.
3.Healthcare has historically been used as a funding short against crowded AI-related long positions, leaving it with very supportive positioning.

Thematic Baskets
Pharmaceuticals – Major & Specialty
US Biotechnology
SMid Biotechnology
Life Science Tools & Diagnostics
Medical Supplies & Devices
Managed Care and Facilities
Vertical SaaS & HealthTech
Positioning and Performance
Fundamentals
Valuation
US Midterm Elections

Report data

Performance Lookback of Health Care Franchise and Innovation Baskets

Metric	Estimate	Context
Healthcare earnings growth	22%	projected earnings growth for S&P 500 Healthcare sector
S&P 500 Healthcare sector index weight	9%	Weight of Healthcare in S&P 500

Source: J.P. Morgan Equity Strategy. This is a dated model snapshot, not a live forecast.