"First we have to get past the election and once we get past that I think some of the political headwinds could lift," Bogdanov said. Her firm has been market weight on health care for much of the year because of political risks, but said it could become more positive if those risks fade.
Much of Wall Street is already bullish on the sector. In a quick survey this summer of eight major investment analysts' calls on S&P 500 sectors, CNBC found six of those firms were overweight health care.
While the S&P 500 is up more than 6 percent for the year, the health-care sector is up less than 1 percent and vying with financials for the worst performance over that time.
There "could be some of the sentiment risk from potential drug price cuts," said Mike Bailey, director of research and chair of FBB Capital Partners. But he said the chance of such a cut is "slim to none."
Bailey said many of those firms "continue to produce good drugs and grow margins." He said he would be more concerned about actual harm to those businesses if, in an unlikely scenario, the Food and Drug Administration took a different view on drug approval, or if pharmacy benefit managers such as CVS or UnitedHealth moved to pressure prices.
From a technical perspective, analysts also see longer-term potential, especially for biotech.
"I think short-term underperformance is to be expected from biotech stocks, and other high-beta areas of the market, as the major indices pull back. However, I expect them to exhibit leadership in Q4," BTIG Chief Technical Strategist Katie Stockton said in an email.