Two Lagging Sectors Could Outperform in the Second Half of 2026

Financials and healthcare have underperformed the S&P 500 year to date, but the sectors might be set for a second half catch up. Truist CIO Keith Lerner upgraded the financials and healthcare sectors to attractive from neutral. "Both sectors are up just 4%–5% this year, less than half the S&P 500's gain, but we see improving momentum, catch-up potential, and attractive exposure to a broadening market," Lerner wrote.