BlackRock Health Sciences Trust (BME)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
BlackRock Health Sciences Trust (BME) trades at $43.70. BlackRock Health Sciences Trust is a closed-end equity mutual fund managed by BlackRock Advisors, investing in health sciences and related sectors within the United States. Market cap: $564.78M, Sector: Financial services.
Price live · AI analysis from Mar 16, 2026Analyst Coverage for BME: BME does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates BME against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
BME: 1/1 perspectives are bearish.
How is this calculated? →BlackRock Health Sciences Trust (BME) Financial Services Profile
BlackRock Health Sciences Trust is a closed-end fund focusing on health sciences equities, managed by BlackRock Advisors. It provides investors exposure to the healthcare sector through a diversified portfolio and option writing strategies. The fund benchmarks against the Russell 3000 Healthcare Index, offering a blend of capital appreciation and income.
What Is the Investment Thesis for BME?
BlackRock Health Sciences Trust presents an investment opportunity within the healthcare sector, driven by its focus on companies involved in health sciences and related industries. With a dividend yield of 11.85%, BME offers a substantial income stream for investors. The fund's high profit margin of 97.4% indicates efficient operations. The fund's strategy of option writing can generate additional income and potentially reduce portfolio volatility. The fund's beta of 0.60 suggests lower volatility compared to the broader market. Key catalysts include ongoing advancements in healthcare technology and increasing demand for healthcare services. Potential risks include regulatory changes in the healthcare industry and market fluctuations affecting the value of its holdings.
Based on FMP financials and quantitative analysis
BME Key Highlights
- Market Cap of $564.78M indicates a mid-sized fund within the closed-end fund landscape.
- P/E ratio of 7.96 suggests the fund's holdings are potentially undervalued compared to their earnings.
- Profit Margin of 97.4% reflects the fund's efficient management and profitable investment strategy.
- Dividend Yield of 11.85% provides a significant income component for investors.
- Beta of 0.60 indicates lower volatility compared to the broader market, potentially offering a more stable investment.
Who Are BME's Competitors?
BME is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| ADSIX American Century Disciplined Growth Fund Investor Class | $23.43 | -1.18% | $479.16M | 44 |
| BFK BlackRock Municipal Income Trust | $10.09 | +0.40% | $442.50M | 49 |
| BGY BlackRock Enhanced International Dividend Trust | $5.77 | +0.70% | $522.85M | 66 |
| BHK BlackRock Core Bond Trust | $9.19 | +0.38% | $497.53M | 67 |
| BLE BlackRock Municipal Income Trust II | $10.54 | -0.19% | $503.04M | 55 |
| NXDT NexPoint Diversified Real Estate Trust | $5.53 | +3.08% | $285.77M | 73 |
| GENB Generate Biomedicines, Inc. | $17.03 | -2.18% | $2.18B | 72 |
| SII Sprott Inc. | $118.11 | +2.72% | $3.05B | 71 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are BME's Key Strengths?
- Experienced management team at BlackRock Advisors, LLC.
- High profit margin of 97.4%.
- Significant dividend yield of 11.85%.
- Lower volatility compared to the broader market (beta of 0.60).
What Are BME's Weaknesses?
- Concentration in the health sciences sector.
- Reliance on option writing strategies.
- Potential impact from regulatory changes in the healthcare industry.
- Sensitivity to market fluctuations.
What Could Drive BME Stock Higher?
- Advancements in healthcare technology, including telemedicine and AI-driven diagnostics, are expected to drive growth in the sector.
- Increasing demand for healthcare services due to the aging population will continue to support the growth of healthcare companies.
- Innovation in pharmaceutical and biotechnology industries, with new drugs and therapies being developed, will create investment opportunities.
- Potential regulatory changes in the healthcare industry could create opportunities for companies that are well-positioned to adapt.
- Strategic option writing strategies can generate additional income and potentially reduce portfolio volatility.
What Are the Key Risks for BME?
- Regulatory changes in the healthcare industry could negatively impact the profitability of healthcare companies.
- Market fluctuations could affect the value of the fund's holdings.
- Competition from other healthcare-focused funds could limit the fund's ability to attract investors.
- Economic downturn could impact healthcare spending and reduce demand for healthcare services.
- Dependence on the performance of the health sciences sector makes the fund vulnerable to sector-specific risks.
What Are the Growth Opportunities for BME?
- Expansion of Healthcare Technology: The increasing adoption of healthcare technology, including telemedicine, AI-driven diagnostics, and digital health solutions, presents a significant growth opportunity for BME. The global digital health market is projected to reach $660 billion by 2025. BME can capitalize on this trend by investing in companies that are at the forefront of healthcare innovation, driving capital appreciation and income generation.
- Aging Population and Increased Healthcare Spending: The global aging population is driving increased demand for healthcare services and products. The global healthcare expenditure is projected to reach $10 trillion by 2022. BME can benefit from this trend by investing in companies that provide essential healthcare services, pharmaceuticals, and medical devices, leading to long-term growth and stability.
- Pharmaceutical Innovation and Drug Development: The pharmaceutical industry is experiencing a period of innovation, with new drugs and therapies being developed to treat a wide range of diseases. The global pharmaceutical market is projected to reach $1.5 trillion by 2023. BME can capitalize on this trend by investing in companies that are developing innovative drugs and therapies, potentially generating significant returns.
- Increasing Demand for Biotechnology Products: The biotechnology industry is experiencing rapid growth, driven by advancements in genetic engineering, personalized medicine, and biomanufacturing. The global biotechnology market is projected to reach $775 billion by 2024. BME can benefit from this trend by investing in companies that are developing and commercializing innovative biotechnology products, leading to long-term growth.
- Strategic Option Writing Strategies: BME's emphasis on option writing provides a unique growth opportunity by generating additional income and potentially reducing portfolio volatility. By strategically writing covered call options on its holdings, BME can enhance its yield and provide downside protection. This strategy can be particularly effective in a stable or slightly declining market, generating consistent income for investors.
What Opportunities Does BME Have?
- Expansion of healthcare technology and digital health solutions.
- Growing demand for healthcare services due to the aging population.
- Innovation in pharmaceutical and biotechnology industries.
- Strategic option writing to generate additional income.
What Threats Does BME Face?
- Regulatory changes in the healthcare industry.
- Market fluctuations affecting the value of its holdings.
- Competition from other healthcare-focused funds.
- Economic downturn impacting healthcare spending.
What Are BME's Competitive Advantages?
- Established Brand: BlackRock's strong brand reputation and extensive asset management experience provide a competitive advantage.
- Experienced Management Team: The fund is managed by BlackRock Advisors, LLC, which has a team of experienced investment professionals.
- Option Writing Expertise: BME's emphasis on option writing provides a unique source of income and potential downside protection.
- Diversified Portfolio: The fund invests in a diversified portfolio of health sciences companies, reducing risk.
What Does BME Do?
BlackRock Health Sciences Trust (BME) was established on March 31, 2005, and is domiciled in the United States. As a closed-end equity mutual fund launched by BlackRock, Inc., BME is managed by BlackRock Advisors, LLC. The fund's primary investment objective is to provide total return through a combination of current income, current gains, and long-term capital appreciation. BME achieves this by investing in companies operating within the health sciences and related sectors. These sectors encompass businesses involved in researching, developing, producing, distributing, or delivering medical, dental, optical, pharmaceutical, or biotechnology products, supplies, equipment, or services. The fund invests in the public equity markets of the United States, focusing on the health sciences industry. It also employs equity derivatives, with a particular emphasis on option writing, as part of its investment strategy. BME benchmarks the performance of its portfolio against the Russell 3000 Healthcare Index, providing a standard for evaluating its investment results. The fund offers investors a way to access a portfolio of health sciences companies, managed by an experienced investment team, within a closed-end fund structure.
What Products and Services Does BME Offer?
- Invests in stocks of companies operating in the health sciences and related sectors.
- Focuses on companies involved in researching, developing, producing, distributing, or delivering medical, dental, optical, pharmaceutical, or biotechnology products, supplies, equipment, or services.
- Employs equity derivatives, with an emphasis on option writing.
- Benchmarks the performance of its portfolio against the Russell 3000 Healthcare Index.
- Seeks to provide total return through a combination of current income, current gains, and long-term capital appreciation.
How Does BME Make Money?
- Generates income through dividends and capital appreciation from its investments in health sciences companies.
- Enhances income through strategic option writing strategies.
- Manages the fund's portfolio to align with its investment objective and benchmark.
What Industry Does BME Operate In?
BlackRock Health Sciences Trust operates within the asset management industry, specifically focusing on the healthcare sector. The healthcare industry is experiencing growth driven by factors such as an aging population, technological advancements, and increased healthcare spending. The competitive landscape includes other closed-end funds and ETFs that focus on the healthcare sector. BME differentiates itself through its active management by BlackRock Advisors, its emphasis on option writing, and its focus on a diversified portfolio of health sciences companies. The fund's performance is benchmarked against the Russell 3000 Healthcare Index.
Who Are BME's Key Customers?
- Individual investors seeking exposure to the healthcare sector.
- Institutional investors looking for income and capital appreciation.
- Financial advisors seeking investment solutions for their clients.
Quarterly Financial Performance: BlackRock Health Sciences Trust
Revenue for BlackRock Health Sciences Trust came in at $22.8M during Q4 2025, a 475.0% improvement versus the preceding quarter. The company recorded net income of $80.5M, with diluted EPS of $6.23. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Financial Services.
F-Score 6/9Financial Health
BlackRock Health Sciences Trust's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile.
ROE 14%Key Financial Metrics
Return on equity for BlackRock Health Sciences Trust stands at 14.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 13.5%, showing how much profit it generates from its asset base. BME trades at a trailing price-to-earnings ratio of 7.21, below the Financial Services sector average of ~18x. Its free cash flow yield is 4.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.00 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 13.9%, the inverse of the P/E and a quick read on earnings relative to price.
BME Valuation & Market Position
With a $564.78M market cap, BlackRock Health Sciences Trust sits in the small-cap segment of the market.
Net sellingInsider Activity
Over the past six months, BlackRock Health Sciences Trust insiders filed 12 SEC Form 4 transactions — 8 sales and 4 purchases. On net that is roughly 5K shares disposed (about $496K), a signal worth weighing alongside the fundamentals.
BME Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying activity suggests confidence in the company's future, indicating that management believes in the potential for growth.
- Community sentiment has been trending positive, with discussions highlighting the trust's strong position in the health sciences sector.
- Market perception has shifted positively due to increased healthcare demand, especially following recent public health developments.
- Investors are recognizing the long-term value of health sciences, positioning BME as a strategic choice in a recovering economy.
Bear Case
- Concerns about rising interest rates could impact the trust's ability to generate attractive returns, leading to bearish sentiment among some investors.
- Recent discussions have highlighted potential regulatory challenges in the healthcare sector, creating uncertainty around future profitability.
- Some community members express skepticism about the trust's performance compared to other investment vehicles, suggesting a lack of confidence in its competitive edge.
- Overall market volatility has led to cautious sentiment, with investors wary of potential downturns affecting the trust's stability.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q4 2025 | $23M | $81M | $6.23 |
| Q2 2025 | $4M | -$4M | -$0.28 |
| Q4 2024 | $37M | -$22M | -$1.70 |
Based on FMP financials and quantitative analysis
BME Latest News
No recent news available for BME.
BME Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for BME.
Price Targets
Wall Street price target analysis for BME.
BME MoonshotScore
What does this score mean?
The MoonshotScore rates BME's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Charles Choon Sik Park
Not available in provided data
Information about Charles Choon Sik Park's background is not available in the provided data. Without further information, a detailed biography cannot be provided.
Track Record: Information about Charles Choon Sik Park's track record is not available in the provided data. Without further information, a detailed analysis of their achievements cannot be provided.
Common Questions About BME (Financial Services)
What does BlackRock Health Sciences Trust do?
BlackRock Health Sciences Trust (BME) is a closed-end equity mutual fund that invests in companies operating in the health sciences and related sectors. This includes businesses involved in researching, developing, producing, distributing, or delivering medical, dental, optical, pharmaceutical, or biotechnology products, supplies, equipment, or services. The fund's objective is to provide total return through a combination of current income, current gains, and long-term capital appreciation. It also employs equity derivatives, with an emphasis on option writing, to enhance income and manage risk. BME benchmarks its performance against the Russell 3000 Healthcare Index.
What are the main risks for BME?
The main risks for BME include regulatory changes in the healthcare industry, which could negatively impact the profitability of healthcare companies. Market fluctuations could also affect the value of the fund's holdings. Competition from other healthcare-focused funds could limit the fund's ability to attract investors. An economic downturn could impact healthcare spending and reduce demand for healthcare services. Additionally, the fund's dependence on the performance of the health sciences sector makes it vulnerable to sector-specific risks. Investors should carefully consider these risks before investing in BME.
How sensitive is BME to interest rate changes?
As a closed-end fund investing primarily in equities within the health sciences sector, BME's sensitivity to interest rate changes is indirect but present. Rising interest rates can impact the valuations of the underlying healthcare companies in BME's portfolio, particularly those with high growth expectations or significant debt. Higher rates can also make fixed-income investments more attractive, potentially drawing capital away from equity funds like BME. However, the healthcare sector is often considered relatively defensive, and demand for healthcare services may be less sensitive to economic cycles compared to other sectors. Therefore, BME's overall interest rate sensitivity is likely moderate, influenced more by the specific financial characteristics of its portfolio companies than by broad interest rate movements.
How does BlackRock Health Sciences Trust generate income for its investors?
BlackRock Health Sciences Trust generates income for its investors through a combination of dividend income from its equity holdings and strategic option writing. The fund invests in companies within the health sciences sector that pay dividends, providing a steady stream of income. Additionally, BME employs option writing strategies, primarily covered call options, to generate additional income. By writing covered calls on its existing equity positions, the fund receives premiums, which enhance its overall yield. This strategy can be particularly effective in stable or moderately increasing markets, providing a consistent income stream for investors while also offering partial downside protection.
What are the key factors to evaluate for BME?
Evaluate BME on fundamentals, analyst consensus, and risk factors. Not financial advice.
How frequently does BME data refresh on this page?
BME prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven BME's recent stock price performance?
BlackRock Health Sciences Trust (BME) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Experienced management team at BlackRock Advisors, LLC. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider BME overvalued or undervalued right now?
Valuing BlackRock Health Sciences Trust (BME) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- The information provided is based on the available data and is subject to change.
- AI analysis is pending for BME, so some information may be incomplete.
- Investors should conduct their own due diligence before making any investment decisions.