---
title: "Forget Fauci—Pharma Is Catching Fire"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/294371911.md"
description: "Healthcare, once a hated sector due to significant drawdowns and shorting for AI longs, is showing signs of recovery. Valuations remain depressed while earnings growth is expected to reaccelerate by 2027. JPMorgan has turned constructive on the sector, citing attractive setups following deep underperformance."
datetime: "2026-07-30T13:06:44.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/294371911.md)
  - [en](https://longbridge.com/en/news/294371911.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/294371911.md)
generator: "portal-rs"
---

# Forget Fauci—Pharma Is Catching Fire

## **Inflection point**

Healthcare has become one of the market's most hated sectors after suffering one of its worst relative drawdowns in decades. Much of the weakness appears to have little to do with fundamentals and more to do with positioning, as investors have increasingly funded crowded AI longs by shorting healthcare. With valuations still depressed and earnings growth expected to reaccelerate into 2027, the setup is starting to look increasingly attractive. As JPM puts it: *"Following one of the deepest periods of underperformance in decades, we have been turning more constructive on the sector."*

## **Earnings growth 2027**

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---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**