Winners and Losers: Energy Stocks Soared and Healthcare Crashed in May

May was a month to remember for the U.S. stock market as the benchmark S&P 500 index posted a gain of 6% and had its best showing since 1990. But, as always, there were winners and losers among equities.

The big winners among U.S. stocks during May were energy and technology stocks that are helping to power the artificial intelligence (AI) revolution. Specifically, NRG Energy (NRG) saw its share price rise 42% in the month and Constellation Energy (CEG) was close behind with a 37% gain. Both companies power AI data centers through cleaner energy sources such as natural gas.

Other big winners in May were previously downtrodden technology stocks that are also associated with AI. These include data storage firm Seagate Technology (STX), whose share price increased 37% and outpaced AI chipmaker Nvidia (NVDA). Super Micro Computer (SMCI), which makes AI servers that run Nvidia microchips, also had a big month, with its stock running 26% higher.

Healthcare Loses Out

On the flipside, healthcare was the worst-performing sector of the market in May. The declines were led by insurer UnitedHealth Group (UNH), whose share price fell 27% amid worries after the company slashed its full-year guidance. Also dragging healthcare lower was pharmaceutical giant Eli Lilly (LLY), whose stock dropped 18% after the Trump administration said it wants prescription drug prices lower.

Other healthcare stocks that took a drubbing in May include retail pharmacy chain CVS Health (CVS), and healthcare insurer Humana (HUM). The lone bright spot among healthcare stocks was Insulet (PODD), whose share price vaulted 29% higher on strong financial results. The stock has been on an upswing since the U.S. Food and Drug Administration (FDA) approved its insulin system for Type 2 Diabetes last summer.

Is LLY Stock a Buy?

The stock of Eli Lilly has a consensus Strong Buy recommendation among 18 Wall Street analysts. That rating is based on 16 Buy, one Hold, and one Sell recommendations issued in the last 12 months. The average LLY price target of $1,003.14 implies 34.82% upside from current levels.

Read more analyst ratings on LLY stock