In this article, we will be taking a look at the 10 Best Innovative Healthcare Stocks to Buy Now.
The U.S. healthcare sector has lagged behind the entire market for three consecutive years, with returns of just 0.3% in 2023, 0.9% in 2024, and 12.5% in 2025. The S&P 500 has increased by 10.35% so far in 2026, while the sector has decreased by 1.62%.
Much of this underperformance has been attributed to the market’s relentless focus on artificial intelligence. In a May 18 article, Gareth Powell, Head of Healthcare at Polar Capital, said investor enthusiasm for AI has pulled capital away from defensive sectors such as healthcare. During a June 8 appearance on BNN Bloomberg, UBS Managing Director and Senior Portfolio Manager Michael Zinn echoed that opinion, characterizing 2026 as a “catch-up trade” driven by growing expectations for AI infrastructure earnings, mostly ignoring healthcare.
Ironically, from a valuation perspective, the industry has become more appealing due to the lack of investor interest. Healthcare is now selling at more reasonable values with lower expectations, according to Mizuho Americas healthcare researcher Jared Holz, who spoke to CNBC on June 7. This is because of years of significant investment in AI and technology stocks. SentimenTrader’s Jay Kaeppel also argued that healthcare’s rare stretch of underperformance relative to the S&P 500 could set the stage for stronger returns ahead.
Despite healthcare’s struggles, the broader market outlook remains optimistic. During a June 1 appearance on CNBC’s Squawk Box, Fundstrat’s Tom Lee said the AI boom continues to support equities overall. While he expects volatility and potential headwinds through December, Lee remains bullish, pointing to improving market breadth, the possibility of U.S. economic growth accelerating toward 4%, and a three-phase market cycle that could lift the S&P 500 closer to 7,700 before a stronger rally emerges after the midterm elections.
With that said, let’s now move on to the best healthcare stocks.
Our Methodology
For our methodology, we screened healthcare stocks with innovative business operations and developments, having analysts’ price target upside of at least 20%. We then selected those with the most significant recent developments and news. We ranked the final list based on the total number of hedge fund holders as of Q1 2026, according to Insider Monkey’s database.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Here is our list of the 10 best innovative healthcare stocks to buy now.
10. Genmab A/S (NASDAQ:GMAB)
Number of Hedge Fund Holders: 24
Genmab A/S (NASDAQ:GMAB) is one of the best healthcare stocks on our list.
TheFly reported on July 2 that H.C. Wainwright analyst Raghuram Selvaraju increased the price target on GMAB to $40 from $38 while reaffirming a Buy rating on the shares. The revision followed the company’s announcement that the EPCORE DLBCL-4 trial achieved its primary endpoint. Based on the trial outcome, the firm raised its estimated likelihood of regulatory approval for Epkinly to 70% in the first-line setting and 95% in the second-line setting.
In a major secondary development on July 6, Genmab A/S (NASDAQ:GMAB) announced that the European Commission approved marketing authorization for TEPKINLY in combination with lenalidomide and rituximab for adults with relapsed or refractory follicular lymphoma. The approval was supported by findings from the Phase 3 EPCORE FL-1 trial, which evaluated a fixed-duration TEPKINLY plus R2 regimen against the standard R2 treatment. GMAB highlighted that the results demonstrated the therapy’s potential to deliver durable responses through a chemotherapy-free approach for patients with limited treatment options. Epcoritamab is being jointly developed with AbbVie (ABBV) through their oncology partnership, with both companies sharing commercial responsibilities in the U.S. and Japan, while AbbVie manages additional global commercialization.
Genmab A/S (NASDAQ:GMAB) is a global biotechnology company headquartered in Copenhagen, Denmark, focused on developing innovative antibody-based therapies for cancer and other serious diseases. The company uses advanced AI, computational science, and proprietary platforms to create next-generation medicines, including DuoBody bispecific antibodies, HexaBody immune-enhancing technology, and ADC platforms expanded through its acquisition of ProfoundBio.
9. Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX)
Number of Hedge Fund Holders: 30
Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX) is one of the best healthcare stocks on our list.
TheFly reported on July 2 that UBS analyst Ashwani Verma initiated coverage of CRNX with a Buy rating and a $55 price target. The analyst noted that the stock’s 44% decline since mid-January presents an appealing opportunity for investors. UBS highlighted CRNX’s pipeline as having multiple potential catalysts, supported by programs with strong chances of clinical success. The firm expressed the highest confidence in the Phase 3 atumelnant program for congenital adrenal hyperplasia and projects peak sales potential of approximately $2.0 billion.
In other news, on July 6, Vertex Pharmaceuticals and Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX) announced a definitive agreement under which Vertex will acquire Crinetics for $85.00 per share in cash, representing an equity value of approximately $10 billion, or about $8.8 billion after accounting for estimated acquired cash. The transaction received unanimous approval from both companies’ boards and is expected to close in the third quarter of 2026. Vertex stated that CRNX’s endocrine-focused portfolio, including PALSONIFY and atumelnant, aligns with its strategy of developing transformative medicines for diseases with significant unmet needs. The acquisition is expected to support Vertex’s revenue growth, with the combined assets projected to provide more than $5 billion in potential peak annual revenue.
Crinteics Pharmaceuticals, Inc. (NASDAQ:CRNX) is a clinical-stage biopharmaceutical company focused on developing oral, non-peptide therapies for endocrine diseases and tumors by targeting G-protein-coupled receptors (GPCRs). Its key programs include PALSONIFY (paltusotine), an FDA- and EMA-approved oral treatment for acromegaly; atremelnant, a Phase 3 therapy for congenital adrenal hyperplasia and Cushing’s syndrome; and a pipeline targeting conditions such as Graves’ disease, obesity, and other endocrine disorders, and this is what makes the company innovative.
