Healthcare’s Momentum Gathers Steam. 3 Stocks With Bullish Charts.

Healthcare stocks have been the undisputed winner in recent weeks. (Dreamstime)

Key Points

• Healthcare stocks are recovering strongly, with the Health Care Select Sector SPDR ETF leading 11 major S&P sector funds in recent weeks.
• HealthEquity broke above an ascending-triangle pivot at $98 on Nov. 10.
• Insmed and Liquidia Corp have both gained nearly 200% over the last year, with Insmed breaking above $200 and Liquidia clearing a cup-base pivot.

Healthcare stocks are recovering strongly as the year winds down. The Health Care Select Sector SPDR ETF is the best-performing of 11 major S&P sector funds over the past week, month, and three-month periods.

The appeal of this group is its variety. It offers something for every type of investor. For the risk-averse, there are the defensive, mature pharma names. For the risk-seekers, young biotech stocks fit the bill. Medical equipment makers and managed-care providers also figure in.

Recent standouts have been large-cap biotech and pharma leaders: Gilead Sciences last week touched an all time high. Amgen is tracking a fourth straight weekly gain, which would mark its first such streak since January. I wrote about this in early October. Biogen is aiming for a fifth straight weekly advance, its first since late 2023. Eli Lilly has powered through the key $1000 level and continues to act well following its breakout above the double-bottom pivot at $864.45 from Nov. 3. Regeneron is looking for its third weekly gain in a row, after a 13% jump the week ending Oct. 13.

Let’s take a look at a few more healthcare stocks with compelling chart setups.

HealthEquity, a health-information services play, is up 7% year to date and 14% over the past three months. While it sits about 12% below its 52-week high, it appears to be building the right side of a long, constructive base that began in early June. The pattern started with a bearish shooting-star candle on June 5, leading to declines in nine of the next 12 weeks. Recent action has improved notably, highlighted by a bullish golden cross as the 21-day exponential moving average pushed above the 50-day simple moving average. On Nov. 10, the stock broke forcefully above an ascending-triangle pivot at $98, rising 6.5% on heavy volume, and it is now distancing itself from the key $100 level. Look for a potential move toward $110 by year end and continued strength into 2026, while remaining constructive above $95.

Healthequity traded around $102 Wednesday.

HealthEquity is looking to put some distance between itself and the very round $100 number.

Insmed, a biotech general, has gained nearly 200% over the last year and is a prime example of a strong name getting even stronger. The stock declined in consecutive weeks just three times this year. It is currently digesting its latest earnings reaction from Oct. 30, when shares jumped 16%, marking its first positive earnings move in the last five reports. The stock’s real momentum began with a nearly 30% gap-up on June 10 that cleared a cup base, followed by a breakout above a cup-with-handle pivot of $105.45 on July 31, an action I highlighted this summer. Since then, it has almost doubled and is now attempting to push decisively away from the very round $200 level after breaking above a bull flag. Entries here look attractive, with a target of $235 by early 2026, while the bullish thesis remains intact above $185.

Insmed traded around $201 Wednesday.

Insmed is breaking above a bull flag and looking to get comfortable above $200.

Liquidia Corp, a biotech leader, is up nearly 200% over the last year and now trades just 2% below its 52-week high. The stock has showed powerful relative strength with an almost 8% gain this week heading into Wednesday versus just 1% for the SPDR S&P Biotech ETF. This week’s advance follows two prior weekly gains of 7%. Since the early April lows, the stock has logged seven double-digit weekly gains, including four surges of more than 20%. Each of these closed at the top of their weekly ranges, a hallmark of strong institutional demand. Technically, the name continues to impress, breaking above a bull-flag pivot at the very round $20 level in early August and clearing a cup-base pivot of $30.04 on Tuesday. Look for a move toward $38 by early first quarter, and remain bullish as long as it holds above $27.

Liquidia traded around $30 Wednesday.

Liquidia is one of better looking biotech names looking to extend strength into year end.

Doug Busch is the senior technical analyst at Barron’s Investor Circle. His technical view is added to stock picks, including those published exclusively for Investor Circle readers. A glossary of technical terms is updated regularly with new entries.