Global healthcare stocks are at historic lows despite fund inflows, as uncertainty over U.S. drug pricing policies under Trump looms. Valued 11% below the long-term average, healthcare trades cheap but unloved, with some investors seeing potential in aging populations and new therapeutics. Interest rate cuts may boost the sector.

Investors cautious as U.S. healthcare underperforms, trading at a 27% discount to the S&P 500. Policy uncertainty clouds earnings forecasts, challenging stock performance. Fidelity Investments’ Eddie Yoon notes the need for a catalyst to drive growth, with hopes for clarity by year-end and potential industry M&A on the horizon.

European healthcare even cheaper than U.S., trading at 14.3 times forward earnings. Novo Nordisk shares drop 55% due to competition concerns, affecting valuations. Companies like AstraZeneca making U.S. investments to adapt. Sector remains in limbo, lacking visibility for a broad re-rating, but potential for transformation and growth.

Read more at Yahoo Finance: Analysis-Five years after COVID, pharma shares languish in US policy limbo