With geopolitical and macro risks elevated, we see Healthcare as one of the few  equity segments offering earnings stability and capital return at a still favorable  valuation. We entered this year with an overweight on Healthcare and maintain this  view given the sector continues to offer a rare combination of Quality, Low Vol,  Growth and Value. This report is a joint effort between Equity Macro Strategy and  Healthcare Research teams, and includes investment theses for all major Healthcare  sub-sectors along with two baskets based on JPM stock analysts’ views: (1) JPM  Healthcare Franchise (JPAMHFRA) is a higher Quality basket expected to  outperform S&P 500 Healthcare sector; and (2) JPM Healthcare Innovation (JPAMHINO) is a higher Growth basket with attractive long-term risk/reward  especially given its recent sharp underperformance.