Special Report: The Right Prescription for Your Money

Health Care has been one of the weakest sectors year-to-date. 

As of last week, it was even underperforming Staples—hardly the kind of stocks you want to own in a bull market. 

Needless to say, this has been one of the worst places to put money to work in 2025.

But after months of basing, things are changing in a big way.

The Health Care Sector ETF $XLV just fired a short-term momentum thrust. With that move, it now sits firmly above every major anchored VWAP, a clear signal that buyers are taking back control.

These types of moves aren’t quiet. This kind of price action tells us the path of least resistance is higher and a new bull market is underway. 

And when rotation like this starts to stick, we want to be where the relative strength is. 

When we dig beneath the surface in Health Care, it’s clear Pharma stocks are leading the way.

Here’s Pharma vs Health Care on an equally weighted basis: 

These have been some of the most hated names in the market. Bellwethers like Pfizer are still down more than 50% from their all-time highs. 

Against a washed out sentiment backdrop, pharma indexes posted a similar initiation-style momentum reading last week, confirming what we’re already seeing under the hood.

Here’s the VanEck Pharmaceuticals ETF $PHP: 

Pharma is where the juice is right now. And that’s where we want to be if healthcare sees follow through. 

Here’s our Pharma Universe sorted by proximity to 52-week highs:

Now let’s dive in and see what the doctor is ordering in this space.

Our first setup today is the world’s second largest drug manufacturer, with a market cap of $455B. This is Johnson & Johnson $JNJ: 
 

After years of chopping sideways, Johnson & Johnson has finally resolved higher from a massive multi-year base. 

Price is taking out the 161.8% extension that capped the previous bull run, around 183. 

We want to be long JNJ above 183, targeting 228 as our next objective. 

I also like the idea of collecting a 2.7.% dividend yield.

But this next one is the top dividend play in the sector… 

(If you're not a member of ASC Premium and want access to the trade ideas from this post, join us risk-free.)