The health care sector has had a tough time keeping up with the S&P recently. In particular, the biotech sector has been hit hard. Over the past 1-week and 1-month time frames, health care has been the worst performing sector. Yet this high-level sector view doesn't tell the whole story. When I look on the individual stock level, my top 3 stocks are in the health care sector: GILD, AET, and ABBV. Although the health care sector as a whole may be swimming up stream against historically high valuations, these 3 are actually quite cheap and in position to continue to generate strong free cash flows. I concede the pharmaceuticals and biotechs are trading at full valuations, but GILD, AET and ABBV should not be overlooked just because they are in the health care sector.