By Angel Adegbesan

“If you combine the fact that Congress is so divided that making policy changes is going to be just incredibly difficult, and the fact that the executive branch just doesn’t have the level of power that they think they have, it’s going be very difficult for them to implement a lot of the policy reforms they’re pushing,” said Spencer Perlman, director of healthcare policy research at Veda Partners.

It’s been a tough year for healthcare stocks, with the sector essentially unchanged over the last 12 months while the S&P 500 Index rose 25%, making it the benchmark’s worst performing group over that time. For 2025, investment pros recommend looking at individual healthcare companies based on fundamentals rather than focusing on the index level.