With AI stocks getting all the attention, some value plays in healthcare look interesting. CVS Health and Merck are both trading at valuations significantly lower than the sector average. CVS is trading at 11x forward earnings compared to the sector average of 18.3. They are guiding for $400 billion in revenue for 2026. The company is scaling back its Medicare Advantage unit to control costs and focus on better margins rather than just top-line growth. Merck is trading at 11.6x forward earnings. While they are facing competition for Keytruda and softer sales in China, new launches like Winrevair are ramping up and expected to generate over $1 billion in 2025. They also have a new flu vaccine candidate in the pipeline.