Core Insights - Healthcare stocks experienced a rally in 2025, breaking a two-year slump as investors sought steadier rates, better valuations, and improving earnings, although mid-single-digit gains still lagged behind tech stocks [2][6] - Investors are shifting focus from high-risk biotech to MedTech and healthcare services, which are based on procedure volume and recurring revenue, reducing exposure to binary risks associated with drug development [3][6] Company Highlights - Johnson & Johnson (J&J) has shifted its focus to innovative medicine and medical technology after spinning off its consumer products division, with MedTech sales increasing by 6.1% to $33.8 billion in 2025, including $8.8 billion in the fourth quarter [4][5] - Intuitive Surgical is highlighted as a strong growth story in healthcare, benefiting from rising global procedure volumes and a business model that generates recurring revenue from instruments and services used in surgeries [5][7] - Other companies like Edwards Lifesciences and IQVIA are also positioned to capitalize on growth opportunities in the healthcare sector, indicating a broader trend beyond traditional biotech [6]