In this article, we will look at the 10 Best Affordable Healthcare Stocks to Buy Now.
On December 26, Bernstein analyst Lance Wilkes appeared on CNBC to talk about the outlook for the managed care providers in 2026, along with how the rising healthcare costs could be best addressed.
According to him, this has been a year where certain areas of healthcare, particularly those related to health spend or real significant turnarounds in business, have performed pretty well, allowing certain companies in the domain from benefit from the trends. In addition, the broad space is experiencing a stabilization in some of the health insurers. They have been going through a “super cycle”, according to Wilkes, which has impacted them in terms of pricing, especially related to the government programs, with trends of stability exhibited by the second half of the year.
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Discussing the potential implications for investors and how it could impact the stock price if there is an attempt for managed care organizations to tackle the costs of medicines, Wilkes noted that there are several opportunities, as this particular domain constitutes a very small subset of the overall health insurance market. The more important aspect that investors should be looking at, according to him, is this traditonal insurance cycle, which is essentially a super cycle, according to him. He added that we are seeing a withdrawal of competition and capital, which is going to lead to a firming of prices and improvements in margin.
With these trends in view, let’s look at the best affordable healthcare stocks to buy now.
Our Methodology
We used stock screeners to make a list of healthcare stocks with a forward P/E below 15 and selected the top 10 stocks with the highest number of hedge fund holders, as of Q3 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was recorded on December 26.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best Affordable Healthcare Stocks to Buy Now
10. Sanofi (NASDAQ:SNY)
Forward P/E: 10.63
Number of Hedge Fund Holders: 32
Sanofi (NASDAQ:SNY) is one of the best affordable healthcare stocks to buy now. Sanofi (NASDAQ:SNY) announced on December 24 an agreement to acquire Dynavax Technologies Corporation, which is a publicly traded vaccines company with a marketed adult hepatitis B vaccine (HEPLISAV-B®) and a differentiated shingles vaccine candidate. Dynavax’s adult hepatitis B vaccine HEPLISAV-B is marketed in the United States, and holds a differentiated position due to its its two-dose regimen over one month compared to other hepatitis B vaccines, which are administered in three doses over six months.
In another development, Berenberg Bank analyst Luisa Hector reaffirmed a Buy rating on Sanofi (NASDAQ:SNY) on December 19 and set a price target of €105.00.
The same day, Sanofi (NASDAQ:SNY) announced an agreement with the Donald Trump administration to ensure increased access to affordable medications granted to American patients while simultaneously supporting the country’s role in biopharmaceutical manufacturing and innovation. The agreement entails Sanofi (NASDAQ:SNY) confirming its growth strategy to support its role as a driver of progress and positive impact by taking the lead through “breakthrough science”.
Management reported that the confidential and voluntary agreement between President Trump’s administration and the company satisfies all four requests outlined in the President’s July 31, 2025, letter, and would ensure that certain Sanofi (NASDAQ:SNY) medications can be accessed by state Medicaid programs at the same prices available to other high-income nations. The agreement would thus slash prices by an average of 61% for particular medications targeting cardiovascular and neurological conditions, diabetes, and cancer. Sanofi (NASDAQ:SNY) added that it would also provide consumers access to lower-cost medicines via the TrumpRx.gov and other direct-to-patient platforms, offering nearly 70% of average savings on particular medicines that treat diabetic and cardiovascular conditions.
Sanofi (NASDAQ:SNY) researches, produces, and distributes pharmaceutical products. The company’s operations are divided into the Pharmaceuticals, Consumer Healthcare, and Vaccines segments.
9. GSK plc (NYSE:GSK)
Forward P/E: 11.48
Number of Hedge Fund Holders: 41
GSK plc (NYSE:GSK) is one of the best affordable healthcare stocks to buy now. GSK plc (NYSE:GSK) announced on December 19 an agreement with the United States administration to lower the cost of prescription medications for patients in the US, which includes the company’s broad respiratory portfolio targeting the treatment of over 40 million Americans suffering from respiratory conditions such as COPD and asthma.
The agreement entails GSK plc (NYSE:GSK) lowering the price of certain medicines in Medicaid, along with launching new products with a higher balance pricing approach that recognises the value of innovation across developed nations. Management reported that the agreement satisfies all four actions requested by President Trump in his July 31st letter.
GSK plc (NYSE:GSK) added that it would also “make most” of its inhaled respiratory portfolio, along with other products available to patients, on a direct purchasing platform offering up to 66% of savings. In addition, management reported that as part of the President’s Strategic Active Pharmaceutical Ingredients Reserve (SAPIR), the company would support the resilience of the US supply chain for critical medicines through securing a reserve of albuterol (also known as salbutamol) for the US. Albuterol is the active ingredient in several inhalers that relieve symptoms of COPD and asthma.
While the agreement’s detailed terms remain confidential, management added that the entered agreements covers both GSK plc (NYSE:GSK) and ViiV Healthcare and exclude the two from s232 tariffs for 3 years.
Formerly known as GlaxoSmithKline, GSK plc (NYSE:GSK) is a global biopharma company that develops and distributes a range of vaccines, medications, and consumer health items. It is based in the United Kingdom and has over 20 vaccines in its portfolio. The company also develops cancer treatments for multiple myeloma, ovarian cancer, and endometrial cancer, among others.
8. Novo Nordisk A/S (NYSE:NVO)
Forward P/E: 14.41
Number of Hedge Fund Holders: 50
Novo Nordisk A/S (NYSE:NVO) is one of the best affordable healthcare stocks to buy now. On December 22, Novo Nordisk A/S (NYSE:NVO) announced the FDA approval of the Wegovy® pill, a once-daily oral semaglutide 25 mg, for long term weight management, excess body weight reduction, and reduction in the risk of major adverse cardiovascular events. The approval makes the Wegovy® pill the first oral glucagon-like peptide-1 (GLP-1) receptor agonist therapy approved for weight management.
In another development, Novo Nordisk A/S (NYSE:NVO) announced on December 18 the submission of a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for once-weekly CagriSema, which is a cagrilintide 2.4 mg and semaglutide 2.4 mg injection, for use with increased physical activity and a reduced-calorie diet for the reduction of excess body weight and maintenance of long term weight reduction in adults with obesity of overweight. CagriSema is a fixed-dose combination of a long-acting amylin analogue, cagrilintide 2.4 mg, and the GLP-1 receptor agonist, semaglutide 2.4 mg.
Management reported that if CagriSema is approved, it would become the first injectable GLP-1 receptor agonist and amylin analogue combination treatment. It added that adults with obesity or overweight, with at least one obesity-related complication, lost an average of 23% body weight after taking CagriSema in the REDEFINE 1 phase 3 trial when evaluating the treatment effect if all patients stayed on treatment.
Novo Nordisk A/S (NYSE:NVO) further reported that the FDA is anticipated to review the CagriSema application in 2026, with the company continuing to build on its 100-year-plus legacy of innovation and science with potential new treatments in the obesity sphere.
Novo Nordisk A/S (NYSE:NVO) is a global healthcare company specializing in diabetes care. It develops, discovers, manufactures, and markets pharmaceutical products. Its operations are divided into two business segments: biopharmaceuticals and diabetes and obesity care. The latter segment covers GLP-1, insulin, and other protein-related products.
7. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Forward P/E: 12.08
Number of Hedge Fund Holders: 60
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is one of the best affordable healthcare stocks to buy now. Teva Pharmaceutical Industries Limited (NYSE:TEVA) announced on December 24 that S&P Global Ratings upgraded the company’s long-term issuer credit rating to ‘BB+’ from ‘BB’ with a stable outlook. Moody’s Ratings Agency also affirmed the company’s B1a rating, revising its outlook to positive from stable.
Management stated that the upgrades mark a notable milestone in Teva Pharmaceutical Industries Limited’s (NYSE:TEVA) advancement towards attaining investment-grade status. S&P noted that the company’s adjusted leverage declined to 4.4x as of September 30, 2025, and is anticipated to drop below 4.25x in the coming quarters and meet the threshold for the higher rating. The agency also cited Teva Pharmaceutical Industries Limited’s (NYSE:TEVA) business strength, liquidity profile, and financial discipline, with it bouncing back to revenue growth following five years of declines with support from solid performance in branded medicines and stabilization in generics.
In a separate development, Piper Sandler lifted the price target on Teva Pharmaceutical Industries Limited (NYSE:TEVA) to $40 from $30 on December 22 and reaffirmed an Overweight rating on the stock. The firm cited further multiple expansion, stating that the company’s peer group is undergoing evolution with the mix continually shifting towards novel brand assets. It clarified that the larger cap biopharma group is becoming a more appropriate peer group for Teva Pharmaceutical Industries Limited (NYSE:TEVA). Similarly, Goldman Sachs lifted the price target on the stock to $35 from $31, keeping a Buy rating on the shares.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) develops, produces, and sells medicines. Its operations are divided into the US, Europe, and International Markets geographical segments. Each business segment covers the entire product portfolio in that region, including specialty, generics, and over-the-counter (OTC) products.
6. Gilead Sciences, Inc. (NASDAQ:GILD)
Forward P/E: 14.88
Number of Hedge Fund Holders: 61
Gilead Sciences, Inc. (NASDAQ:GILD) is one of the best affordable healthcare stocks to buy now. Gilead Sciences, Inc. (NASDAQ:GILD) announced on December 22 that it has exercised its combined option to exclusively license Assembly Bio’s herpes simplex virus (HSV) helicase-primase inhibitor programs, which include long-acting investigational candidates ABI-1179 and ABI-5366 for recurrent genital herpes.
Management reported that these programs represent the programs advanced by Gilead Sciences, Inc. (NASDAQ:GILD) under the ongoing Assembly Bio R&D collaboration, bolstering their commitment to driving long-term growth through innovative therapies that address considerable unmet needs and building a novel antiviral pipeline.
Caused by HSV, genital herpes is a chronic infection that causes painful lesions, social and psychological stigma, and a higher risk of HIV acquisition. No new therapies have been approved for HSV in the US or Europe for over 25 years. ABI-1179 and ABI-5366 are novel long-acting inhibitors of viral helicase-primase, which is an enzyme critical for herpes virus replication and has the potential to enhance chronic suppression therapy for recurrent genital herpes. Management reported that positive interim Phase 1b data for ABI-5366 and ABI-1179 exhibited strong antiviral activity and improvements in clinical outcomes, which included a considerable drop in virus-positive lesions. Gilead Sciences, Inc. (NASDAQ:GILD) further reported that both compounds have pharmacokinetic and safety profiles that are supportive of once-weekly oral dosing.
Gilead Sciences, Inc. (NASDAQ:GILD) is a biotech company that advances medicines to prevent and treat serious diseases such as cancer, immunodeficiency virus (HIV), viral hepatitis, and COVID-19. Its portfolio of drugs focuses on medical areas with unmet needs and includes AmBisome, Atripla, Biktarvy, Cayston, Complera, and others. Gilead Sciences, Inc. (NASDAQ:GILD) operates in over 35 countries.
5. Bristol-Myers Squibb Company (NYSE:BMY)
Forward P/E: 8.36
Number of Hedge Fund Holders: 76
Bristol-Myers Squibb Company (NYSE:BMY) is one of the best affordable healthcare stocks to buy now. On December 22, Bristol-Myers Squibb Company (NYSE:BMY) received a Buy rating from Guggenheim with a price target of $62.00.
In a separate development, Bristol-Myers Squibb Company (NYSE:BMY) announced on December 19 an agreement with the United States government for the provision of Eliquis (apixaban) for free to the Medicaid program, along with the donation of over seven tons of Eliquis active pharmaceutical ingredient (API) to ensure the resilience of the American supply chain. Eliquis is an oral anticoagulant that millions of Americans rely on daily.
Management reported that the agreement aligns with Bristol-Myers Squibb Company’s (NYSE:BMY) ongoing commitment to the advancement of cardiovascular health, enhancing patient outcomes, and collaborating with policymakers to develop solutions that simultaneously support future innovation and the lowering of costs for the healthcare system and American patients.
Bristol-Myers Squibb Company (NYSE:BMY) further reported that as part of the agreement, the company would address the four priority areas of the Administration, including making Eliquis available to Medicaid for free starting on January 1, 2026, launching new medicines with a higher balance pricing approach across developed nations, and making the historic donation of over seven tons of Eliquis API to fill the U.S. Strategic Active Ingredient Reserve at no cost to the U.S. government or taxpayers. It also includes enabling direct-to-patient access for cash-paying patients to Sotyktu®(deucravacitinib), Zeposia®(ozanimod), Reyataz®(atazanavir), Baraclude®(entecavir), and Orencia®SC(abatacept), which allows the availability of these significant medications at around 80% discounts to the current list prices.
Bristol-Myers Squibb Company (NYSE:BMY) is a biopharmaceutical company that discovers, develops, and delivers advanced medicines for serious diseases. Its medicines fall into various therapeutic classes, including hematology, oncology, cardiovascular, immunology, and neuroscience.
4. CVS Health Corporation (NYSE:CVS)
Forward P/E: 11.96
Number of Hedge Fund Holders: 78
CVS Health Corporation (NYSE:CVS) is one of the best affordable healthcare stocks to buy now. CVS Health Corporation (NYSE:CVS) received a rating update from RBC Capital on December 18, with the firm maintaining a Buy rating on the stock with a $93.00 price target.
In addition, JPMorgan lifted the price target on CVS Health Corporation (NYSE:CVS) to $101 from $93 on December 17 and maintained an Overweight rating, adjusting price targets in the healthcare services groups as part of its 2026 outlook. The firm told investors that it sees “some reasons for optimism that managed care estimates are approaching trough levels”, adding that most managed care companies will either reach trough levels in 2026 earnings or have already done so in 2025, with potential for upward revisions going forward.
In a separate development, CVS Health Corporation (NYSE:CVS) updated its financial guidance on December 9, raising its total revenues guidance for the full year 2025 to at least $400.0 billion from at least $397.3 billion. The company also lifted the GAAP diluted earnings (loss) per share guidance range to $0.32 to $0.22 from $0.34 to $0.24, and raised the GAAP operating income guidance range to $4.37 billion to $4.54 billion from $4.29 billion to $4.46 billion.
In addition to its 2025 full-year financial guidance, CVS Health Corporation (NYSE:CVS) also initiated its 2026 full-year financial guidance with total revenues of at least $400.0 billion and a GAAP operating income guidance range of $13.26 billion to $13.60 billion. Adjusted EPS guidance range for the year was $7.00 to $7.20, with a cash flow from operations guidance of at least $10.0 billion. CVS Health Corporation (NYSE:CVS) anticipates to attain a mid-teens Adjusted EPS CAGR through 2028, supported by continued strong performance in its business collection.
CVS Health Corporation (NYSE:CVS) is a health solutions company that operates in four segments: healthcare benefits, health services, pharmacy & consumer wellness, and corporate/other.
3. Elevance Health, Inc. (NYSE:ELV)
Forward P/E: 11.67
Number of Hedge Fund Holders: 82
Elevance Health, Inc. (NYSE:ELV) is one of the best affordable healthcare stocks to buy now. Elevance Health, Inc. (NYSE:ELV) was downgraded to Hold from Buy by Deutsche Bank analyst George Hill on December 19. The analyst also brought the price target down to $320 from $332.
However, BofA lifted the price target on the stock to $385 from $370 on December 16, reaffirming a Neutral rating on the shares and telling investors that its higher target exhibits higher peer multiples.
In a separate development, Elevance Health’s (NYSE:ELV) board of directors announced on December 10 the appointment of Amy Schulman, a recognized healthcare executive, investor, and governance leader, as an independent director, effective January 12, 2026. The company reported that Schulman would serve on the Audit and Finance Committees and contribute expertise in regulatory strategy, healthcare innovation, and value creation across complex enterprises as a recognized healthcare executive, investor, and governance leader.
Management further stated that the appointment exhibits Elevance Health’s (NYSE:ELV) ongoing board refreshment strategy to ensure independent, diverse, and future-focused leadership aligning with the priorities of its stakeholders and its long-term strategy.
Separately, Elevance Health, Inc. (NYSE:ELV) announced on December 5 the expansion of access of its Virtual Assistant, a digital experience built to help members understand their benefits, access information seamlessly, and find care. The Virtual Assistant is available through the Sydney Health app and Elevance Health–affiliated health plan websites, and uses conversational technology to boost engagement between members and their health plans and simplify healthcare navigation.
Elevance Health, Inc. (NYSE:ELV) is a health company that operates through the following segments: Health Benefits, CarelonRx, Carelon Services, and Corporate and Other. The Health Benefits segment offers a range of health plans and services, while the CarelonRx segment manages pharmacy services. The Carelon Services segment offers various healthcare-related services by integrating behavioral, physical, pharmacy, and social services.
2. Pfizer Inc. (NYSE:PFE)
Forward P/E: 8.08
Number of Hedge Fund Holders: 84
Pfizer Inc. (NYSE:PFE) is one of the best affordable healthcare stocks to buy now. Scotiabank analyst Louise Chen reiterated a Buy rating on Pfizer Inc. (NYSE:PFE) on December 17 and set a price target of $30.00. The same day, Bernstein analyst Courtney Breen reiterated a Hold rating on the stock, keeping the associated price target the same at $30.00.
Pfizer Inc. (NYSE:PFE) also received a rating update from BofA analyst Jason Gerberry on December 16, who slashed the price target on the stock to $27 from $28 while keeping a Neutral rating on the shares. The rating update came after Pfizer Inc. (NYSE:PFE) “notably called out” faster COVID-19 product erosion compared to previous guidance as part of its 2026 outlook call. Following the guidance call, the firm “modestly” reduced its 2026 Pfizer sales and EPS estimates along with its FY27 EPS estimates, and expects the planned obesity data updates from the Metsera acquisition to provide a better understanding of the company’s potential obesity differentiation.
Separately, on December 17, Pfizer Inc. (NYSE:PFE) announced positive topline results from an interim analysis of the Phase 3 EV-304 clinical trial (also known as KEYNOTE-B15) for PADCEV™ (enfortumab vedotin). It reported that PADCEV™ Plus Keytruda considerably improved survival for patients with muscle-invasive bladder cancer regardless of cisplatin eligibility, with the trial meeting its primary endpoint and exhibiting statistically significant and clinically meaningful improvements in event-free survival (EFS), and overall survival (OS), a key secondary endpoint.
Management added that PADCEV plus Keytruda is the first and only regimen without platinum-based chemotherapy that improves event-free and overall survival when used before and after surgery in cisplatin-eligible patients with muscle-invasive bladder cancer.
Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company that manufactures, develops, markets, and sells biopharmaceutical products worldwide. It advances wellness, prevention, treatment, and cures in developing and emerging markets.
1. Merck & Co., Inc. (NYSE:MRK)
Forward P/E: 11.27
Number of Hedge Fund Holders: 92
Merck & Co., Inc. (NYSE:MRK) is one of the best affordable healthcare stocks to buy now. Jefferies analyst Tycho Peterson reaffirmed a Buy rating on Merck & Co., Inc. (NYSE:MRK) on December 19 and set a $139.00 price target.
The same day, Merck & Co., Inc. (NYSE:MRK) announced a historic agreement with the Trump administration to ensure the affordability and accessibility of its medicines for Americans. The agreement allows the company to ensure that Americans have access to its life-changing vaccines and medications at lower costs.
Merck & Co., Inc. (NYSE:MRK) reported that it has plans to provide key products at affordable prices for eligible patients in the US through a direct-to-patient program, which currently includes JANUVIA, JANUMET, and JANUMET XR. The plan will be expanded in the future to include enlicitide decanoate after FDA approval. The direct-to-patient program would allow the availability of JANUVIA, JANUMET, and JANUMET XR to eligible American patients at a cash price, which reflects an approximately 70% discount from the current list price.
Management also reported that Merck & Co., Inc. (NYSE:MRK) reached an understanding with the U.S. Department of Commerce for the delay of Section 232 tariffs for three years, allowing the company to make investments in the United States to reshore manufacturing for American patients.
Merck & Co., Inc. (NYSE:MRK) is a biopharmaceutical company that delivers health solutions to advance the treatment and prevention of diseases in animals and people. Its Pharmaceutical segment offers vaccines and human health pharmaceutical products, typically therapeutic and preventive agents. Its Animal Health segment develops, discovers, manufactures, and markets a range of vaccines and veterinary pharmaceutical products.
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