Healthcare sector rallies in October amid rotation away from technology stocks

Healthcare stocks jumped in October, with the Health Care Select Sector SPDR Fund (XLV) gaining nearly 9.5% as investors rotated out of high-flying technology shares and into defensive sectors such as healthcare, which offer established cash flows.

Healthcare Sector Scorecard

Sector Return: 9.53% month-to-dateBest Performer: Regeneron Pharmaceuticals (+26.28%)Top Detractor: Illumina (-11.19%)

Top healthcare gainers in October

Regeneron Pharmaceuticals (REGN) was the biggest winner in October, gaining 26.3%, as the Eylea maker reported higher-than-expected Q3 2026 results, thanks to approximately 36% YoY revenue growth driven by its collaboration with Sanofi.

It was followed by Charles River Laboratories International (CRL), which jumped 25.3% in October.

Eli Lilly (LLY) surged nearly 23.3% in October on the back of better-than-expected third-quarter results and an increase in its full-year 2026 revenue outlook, driven by strong demand for Mounjaro and Zepbound.

Top five gainers:

• Regeneron Pharmaceuticals (REGN): +26.28%, Quant rating: Hold, with a score of 3.43 out of 5
• Charles River Laboratories International (CRL): +25.30%, Quant rating: Hold, with a score of 3.48 out of 5
• Eli Lilly (LLY): +23.28%, Quant rating: Hold, with a score of 3.44 out of 5
• GE HealthCare Technologies (GEHC): +19.68%, Quant rating: Hold, with a score of 3.40 out of 5
• Labcorp (LH): +18.64%, Quant rating: Hold, with a score of 3.41 out of 5

Top healthcare detractors in October

Illumina (ILMN) was the biggest detractor in October, slipping 11.2%, as the DNA sequencing firm's Q3 results beat expectations on the bottom line but missed them on the top line.

It was followed by Solventum (SOLV), which declined nearly 7.3% during the month.

In October, DexCom (DXCM) and Boston Scientific (BSX) fell nearly 4.6% and 2.9%, respectively.

Top five detractors:

• Illumina (ILMN): -11.19%, Quant rating: Hold, with a score of 3.49 out of 5
• Solventum (SOLV): -7.34%, Quant rating: Strong Buy, with a score of 4.58 out of 5
• DexCom (DXCM): -4.57%, Quant rating: Strong Buy, with a score of 4.75 out of 5
• Boston Scientific (BSX): -2.89%, Quant rating: Hold, with a score of 2.74 out of 5
• Baxter International (BAX): -2.71%, Quant rating: Hold, with a score of 3.33 out of 5