Analysis-Struggling US healthcare stocks endure rough 2025 but draw some bargain hunters

By Lewis Krauskopf

NEW YORK (Reuters) -Woes for U.S. healthcare stocks have worsened this year driven partly by Trump administration policies, although some investors are betting that the beaten-down shares are now becoming too much of a bargain to pass up.

The S&P 500 healthcare sector — which includes pharmaceutical companies, biotechs, health insurers and medical equipment makers — has slumped 5% in 2025, lagging the over 7% gain for the overall index.

Pressure to bring down U.S. prescription drug prices to overseas rates, tariffs targeted at pharmaceuticals and cuts to areas such as health research funding and Medicaid are among the Trump administration actions clouding the outlook for the shares this year,…

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