Healthcare Stocks Outlook 2025: Should You Invest?

0:00This is an iHeart Podcast. Guaranteed Human.

0:32I gave her some suggestions to be sexually aroused. Can you get someone to join your cult? NLP was used on me to access my subconscious. Mind Games, a new podcast exploring NLP, a.k.a. neurolinguistic programming. Is it a self-help miracle, a shady hypnosis scam, or both? Listen to Mind Games on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. Hey, it's Joel. and Matt from HowToMoney. If your New Year's resolution is to finally get your finances in shape, we've got your back. Prices, they're still high, and the economy is all over the place. But 2026 is the year for you to get intentional and make real progress.

1:15That's right. Yeah, each week we break down what's happening with your money, the most important issues to focus on, and the small moves that make a big difference. Kick off the year with confidence. Listen to HowToMoney on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. This season on Dear Chelsea with me, Chelsea Handler, we've got some incredible guests like Kumail Nanjiani. Let's start with your cat. How is she? She is not with us anymore. Great, great, great way to start. Maybe you will cry. Ross Matthews. You know what kids always say to me? Are you a boy or a girl?

1:48Oh my God. All the time. That's so funny. I know. So I try to butch it up for kids so they're not confused. Yeah, but you're butching it up. It's basically like Doris Day. No, I turn into Bea Arthur. Listen to these episodes of Dear Chelsea on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. This episode is brought to you by PNC Bank. A lot of people think podcasts about work are boring. And sure, they definitely can be. But understanding a professional's routine shows us how they achieve their success little by little, day after day. It's like banking with PNC Bank. It might seem boring to save, plan, and make calculated decisions with your bank, but keeping your money boring is what helps you live a more happily fulfilled life.

2:34PNC Bank, brilliantly boring since 1865. Brilliantly boring since 1865 is a service mark of the PNC Financial Service Group, Inc. PNC Bank, National Association, member FDIC. it's been uh it's been a very rocky road so far for healthcare stocks um so do you think that the sector will perform better next year we can talk about the tariffs in phases i know that's um overseas pharmaceuticals is one of the things that trump uh put tariffs on so um i believe it's 50 percent on overseas pharmaceutical or 100 100 100 100 on overseas pharmaceutical um and then of course the ozempic lawsuit so there's been a lot of high profile things that have hurt um healthcare stocks don't talk about eli lily a lot but uh yeah what's the what's the forward projection for the healthcare stocks um i think the healthcare sector will be okay but one of the biggest mistakes was that sector trying to price in healthcare returns to match tech returns so if you look even at elio lily from 2021 which was at 201.78 it ballooned up to 972.53 i love elio lily dearly um i think it's one of the most important companies in healthcare but if i had to ask you just okay is it more important than nvidia microsoft meta the price gaps became too wide and I think they began to adjust to prices where they should be.

4:12Novos had their issues. We've always talked about investing into stocks that are domestic and not international first. So I think as a result, the sector will be fine. But if you're looking for high price returns, the only places you really can turn to are Bitcoin, which is a tech and then tech sectors and maybe some energy. Troy, we can talk about app loving later, but I think all in all, even with like United Healthcare, the margin structures are dramatically different than a tech company. So I think it's a mistake at times to try and get the same kind of returns that that sector normally does not give.

4:52Will next year be a little bit better? Yes, but I don't think you should expect 35 to 45 % return in healthcare at all. Yeah, I don't think you should ever expect that type of return. If you're in the right place at the right time, it can happen. Healthcare is interesting. I think it's kind of one of these things where you have to see a breakthrough and it has to be something that has strong. Right. It has to be something with strong policy behind it. There's a lot of different variations or factors that go into making a health care stock something that is worth investing in. The interesting part is that.

5:30AI is going to disrupt health care. And so there could be. Right. It could help it at scale. And so we could see innovations in biotech. I think we're not we're not far from that. Right. Like I talked about this yesterday. where Vlad Tenev was saying that 10 years ago, every company on the stock market is a tech company because it needs a tech component. And last week he said every company is going to be an AI company because it has to have an AI component. And healthcare is not excluded from that. So innovation will happen. How fast? I think it can happen quickly. And if you look at what this administration, especially when we talk about tariffs, and that's even an interesting proposition in itself, right?

6:11Like the tariffs only go into effect at 100 % if you're not building a plant inside of the United States. And so that's like, I mean, you're trying to incentivize people to build infrastructure here from the farmer side. But if they do, then there are no tariffs, right, for those companies. I think you focus on, if you're investing in healthcare, I think you're focusing on the American companies that have been leading. Starwood, Lilly, Johnson & Johnson. I think the best thing to do, right, and we talked about it last week, is go look up these healthcare ETFs and see what allocations are. Right?

6:47If we look at the Spider Fund, XLV, Lilly, Johnson & Johnson, AbbVie, UnitedHealth, Abbott, Merck. I used to talk about Thermo Fisher all the time during the pandemic. We were talking about how we're going to get vaccines. And that business has gone out the window, right? We talk about what's happened to Merck. You can see. Right there, as well. Yeah. Yeah. American companies, if that is what the administration is leaning towards, like I said, you have to have strong policy behind you. I would keep an eye on the top five in XLV and put on my watch list. I definitely and it's striker. I think we can put striker in there.

7:23Right. Yeah, it's always one of my favorites in terms of health care. Lily, for sure. But keep them on your watch list. Lily, obviously, it will be the leader. And that has a lot to do with not just the weight loss drugs. I mean, their entire portfolio, but be mindful of the ones that are getting policy behind it. The only three I like in the space, Eli Lilly, of course, ABBV, and Stryker. You're not in the UnitedHealthcare until I get a new CEO and this trial is over with. Oh, that trial. Yeah. Yeah, that trial. Yeah. Oh. Yeah. Rabbit hole. Nope. shot you try to get canceled this weekend or no we go deep down the rabbit hole wrap it up got you okay i'm always down to get canceled hello when you invest well invest in the best go

8:25100 you're not getting canceled what are you doing we can crash out day whenever you want to I'm always down for a crash show Darcy said what about CVS I've spoken highly about CVS and if you've invested in CVS you've saw great returns on that as well I like CVS too So for people that obviously healthcare is the number one expenditure of the United States government essentially the biggest industry in the world should people have healthcare as part of their portfolio Yeah only literally ABBV and Strucker the other part that's unfortunate is that we spend all this money on health care, but we are one of the sicker major countries in the world.

9:09So it's not for our benefit per se. Do I think there's great leadership at Lily? Yes. ABBV? Yes. Striker? Yes. I think even UnitedHealthcare has a chance to turn itself around. But the mistake was, because at one point when Novo was taken off, The thought was, what if we can get healthcare returns to look like tech? And that's when you started putting out drugs and over-qualifying them and overstating what the benefits could be without looking at the risk. And that destroyed Novo's business. So exposure is great for sure. But those are the three that I will leave them to. Ernest, what's up? Look, this episode is brought to you by Square Banking.

9:54One of the things we love most is seeing neighborhood businesses level up. There's this West Indian spot right in our community that started with a small takeout counter. Now with Square, they've been able to expand into a full sit-down restaurant and even started catering events across the city. That's the kind of growth that inspires us, and it's powered by Square. Square is built for all types of businesses, from the corner bagel shop that turned into a local chain, to the specialty market with thousands of unique items, to the stylist who's been holding you down for years. With Square banking, growth gets easier.

10:30You've got more control over your cash flow, access to capital right in the same system you're already using to run your business. And with a free Square savings account, you can automatically set aside a portion of your sales for upgrades, taxes, and those slow seasons, setting yourself up for long-term success. And when it's time for the next big move, Square makes it simple to get approved with a Square loan based on your actual business performance. No long waits, just quick access to capital. In fact, 88 % of businesses with Square loans report growth. So go to square.com slash go slash E-Y-L to learn more about how your business can grow with Square.

11:12That's S-Q-U-A-R-E dot com slash G-O slash E-Y-L. Block, Inc. is not a bank. Banking services provided by Square Financial Services, Inc. and Sutton Bank. Members FDIC. Loans are subject to credit approval.

11:56NLP, aka Neuro Linguistic Programming. Is it a self-help miracle, a shady hypnosis scam, or both? Listen to Mind Games on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. Hey, it's Joel and Matt from HowToMoney. If your New Year's resolution is to finally get your finances in shape, we've got your back. Prices, they're still high, and the economy is all over the place. But 2026 is the year for you to get intentional and make real progress. That's right. Yeah. Each week we break down what's happening with your money, the most important issues to focus on and the small moves that make a big difference.

12:33Kick off the year with confidence. Listen to How to Money on the iHeartRadio app, Apple Podcasts or wherever you get your podcasts. Hello. Hello. All my people. What's up? It's Questlove. Recently, I had the opportunity to sit down with the one and only A$AP Rocky. He reflects on his journey from Harlem roots to global icon status and discovering the hip-hop origin of his name. The ledge was on the TV. Rakim had the Buckethead Kangol join on. My pops was like, that's Rakim. That's who you named after. I just was like, damn the f***ing f***ing swag. Listen to The Questlove Show on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

13:15This season on Dear Chelsea with me, Chelsea Handler. we've got some incredible guests like Kumail Nanjiani. Let's start with your cat. How is she? She is not with us anymore. She... Okay, great, great, great way to start. Maybe you will cry. Ross Matthews. You know what kids always say to me? Are you a boy or a girl? Oh my God. All the time. That's so funny. I know. So I try to butch it up for kids so they're not confused. Yeah, but you're butching it up is basically like Doris Day. No, I turn into Bea Arthur. Listen to these episodes of Dear Chelsea on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

13:51This is an iHeart Podcast. Guaranteed human.