The healthcare sector is rebounding in 2026 after several years of underperformance relative to the market, and two companies leading the charge are Merck (NYSE:MRK) and AbbVie (NYSE:ABBV). Both healthcare giants have outperformed the broader equity market this year. Merck's shares have climbed 39%, while AbbVie's have gained 24%. Meanwhile, the S&P 500 is up about 12% year-to-date. Could the two drugmakers maintain their recent momentum over the near term? That's hard to say. It's always difficult to predict stock market movements over short periods. However, both companies look like great long-term picks. Here's why. Image source: The Motley Fool. Merck's financial results have been stronger than expected this year. In the second quarter, the company's revenue increased by 5% year over year to $16.6 billion, beating Wall Street estimates. The drugmaker reported a non-GAAP loss per share of $0.13, compared to net earnings per share (EPS) of $2.13 in the prior-year quarter, due to acquisition-related impacts.
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