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.

8. TransMedics Group, Inc. (NASDAQ:TMDX)

Number of Hedge Fund Holders: 40

TransMedics Group, Inc. (NASDAQ:TMDX) is one of the best healthcare stocks on our list.

TheFly reported on July 6 that Evercore ISI analyst Daniel Markowitz reduced the price target on TMDX to $90 from $100 while maintaining an Outperform rating on the shares. The adjustment came as part of the firm’s second-quarter outlook covering the MedTech, Life Sciences Tools, and Diagnostics sectors. Evercore ISI noted that procedure volumes and capital spending trends across the industry remain generally stable, according to the analyst’s research note.

On the same day, TransMedics Group, Inc. (NASDAQ:TMDX) announced a strategic investment in PAD Aviation, a Germany-based private aviation operator. The investment supports the expansion of its Organ Care System National OCS Program into Europe. Through the partnership, the company plans to increase adoption of its OCS perfusion technology while establishing a dedicated pan-European air and ground logistics network for organ transportation across the European Union. TMDX expects the collaboration to improve access to donor organs, streamline transplant logistics, and increase transplant opportunities for patients throughout Europe, further strengthening its international organ transplant infrastructure strategy.

TransMedics Group, Inc. (NASDAQ:TMDX) is a medical technology company transforming organ transplantation through its portable Organ Care System, the first warm-perfusion platform for multiple organs. The system mimics human physiology outside the body, enabling real-time organ monitoring, extending preservation time, increasing donor organ utilization, and improving transplant outcomes compared to traditional cold storage.

7. Alcon Inc. (NYSE:ALC)

Number of Hedge Fund Holders: 46

Alcon Inc. (NYSE:ALC) is one of the best healthcare stocks on our list.

TheFly reported on July 2 that Argus lowered its price target on ALC to $85 from $90 while maintaining a Buy rating on the shares. The firm noted that ALC’s stock is trading significantly below its historical highs and averages, creating a potential valuation opportunity. The company’s improved earnings outlook, with management forecasting 10%-13% growth in 2026 compared with flat performance in 2025, is supported by a strong late-stage product pipeline. Argus highlighted upcoming regulatory submissions expected in 2027 and 2028 as a factor supporting expectations for continued long-term growth.

In other news, on July 6, Alcon Inc. (NYSE:ALC) and RxSight (RXST) announced a non-exclusive collaboration to develop adjustable presbyopia-correcting intraocular lenses (PCIOLs). The partnership will combine RxSight’s post-operative light-adjustable technology with ALC’s PCIOL optical designs to create a platform aimed at improving vision outcomes for cataract patients. Under the agreement, RxSight will receive a $60 million upfront payment to support development activities and may earn up to an additional $140 million through development and regulatory milestones. ALC will oversee global commercialization efforts, while RxSight will manage development and manufacturing responsibilities and receive royalties from product sales.

Alcon Inc. (NYSE:ALC) is a global leader in eye care, developing advanced surgical devices, intraocular lenses (IOLs), and vision care products across 140+ countries. The company focuses on innovation through digital and robotic surgery, next-generation IOL platforms like Clareon, and virtual reality training tools to improve eye care outcomes.

6. Insulet Corporation (NASDAQ:PODD)

Number of Hedge Fund Holders: 55

Insulet Corporation (NASDAQ:PODD) is one of the best healthcare stocks on our list.

TheFly reported on July 6 that Evercore ISI reduced its price target on PODD to $180 from $200 while maintaining an Outperform rating on the shares. The adjustment was included in the firm’s second-quarter preview covering the MedTech, Life Sciences Tools, and Diagnostics sectors. Evercore ISI noted that industry trends remain generally positive, with healthy procedure volumes and capital expenditure activity across the sector.

On the same day, July 6, Insulet Corporation (NASDAQ:PODD) announced the commercial introduction of its Omnipod 5 Automated Insulin Delivery System along with its proprietary data management platform, Omnipod Discover, in Spain. The launch marks Spain as the company’s newest European market and expands Insulet’s global presence. Spain becomes the 26th country where PODD offers Omnipod products and the 20th market where Omnipod 5 is available. The company stated that the expansion supports its broader goal of improving diabetes management and helping more people worldwide benefit from its automated insulin delivery technology.

Insulet Corporation (NASDAQ:PODD) is a global diabetes care innovator best known for its Omnipod tubeless insulin delivery platform. Its flagship Omnipod 5 Automated Insulin Delivery System integrates with continuous glucose monitors (CGMs) to automatically adjust insulin levels, offering a wearable, smartphone-controlled alternative to daily injections.

5. Ionis Pharmaceuticals, Inc. (NASDAQ:IONS)

Number of Hedge Fund Holders: 60

Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) is one of the best healthcare stocks on our list.

TheFly reported on June 25 that H.C. Wainwright increased its price target on IONS to $130 from $125 while maintaining a Buy rating on the shares. The revision followed the U.S. Food and Drug Administration’s approval of Tryngolza.

In other news, on July 6, Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) announced the completion of enrollment in Cohort 1 of the global Phase 3 REVEAL study evaluating obudanersen (ION582), an investigational RNA-targeted therapy for individuals with Angelman syndrome. The pivotal cohort enrolled 136 participants between the ages of 2 and under 18 with genetically confirmed UBE3A deletion or mutation. The company expects enrollment in the adult cohort, which includes participants aged 18 to 50, to conclude in the third quarter of 2026. Topline results from the REVEAL study are anticipated in the second half of 2027. Ionis stated that the trial was designed with input from the Angelman syndrome community to evaluate the therapy across a broad patient population.

Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) is a biotechnology leader in RNA-targeted medicines, pioneering antisense oligonucleotide (ASO) therapies. The company develops treatments for rare, neurological, and cardiometabolic diseases by using ASO, siRNA, and gene-editing technologies to regulate disease-causing proteins and improve drug delivery.

4. Agilent Technologies, Inc. (NYSE:A)

Number of Hedge Fund Holders: 63

Agilent Technologies, Inc. (NYSE:A) is one of the best healthcare stocks on our list.

TheFly reported on July 6 that Evercore ISI analyst Vijay Kumar increased the firm’s price target on A to $148 from $144 while maintaining an Outperform rating on the shares. The revised target came as part of the firm’s second-quarter outlook covering the MedTech, Life Sciences Tools, and Diagnostics sectors. Evercore ISI noted that industry trends remain supported by generally stable procedure volumes and capital spending activity, according to a research note shared with investors.

Separately, earlier this month on July 1, Agilent Technologies, Inc. (NYSE:A) announced the introduction of Agilent xCELLigence RTCA eSight AI, an artificial intelligence-enabled software module designed to improve label-free imaging analysis. The new solution reduces the need for manual cell segmentation and parameter adjustments while helping researchers achieve more consistent analytical outcomes. The software expands the capabilities of the Agilent xCELLigence RTCA eSight platform by integrating AI-based imaging analysis with its existing dual-readout technology, allowing users to collect both imaging and impedance data from identical cells within a single experiment. The upgraded system is designed to provide biopharmaceutical researchers with a more comprehensive understanding of cellular activity while improving workflow efficiency and minimizing variation caused by different users or experimental conditions.

Agilent Technologies, Inc. (NYSE:A) is a global leader in life sciences, diagnostics, and applied chemical markets, providing laboratory instruments, software, and solutions. Its innovations support cancer diagnostics, biotherapeutics, and genomics research, enabling more precise and personalized healthcare.

3. United Therapeutics Corporation (NASDAQ:UTHR)

Number of Hedge Fund Holders: 64

United Therapeutics Corporation (NASDAQ:UTHR) is one of the best healthcare stocks on our list.

TheFly reported on June 29 that Leerink Partners characterized the FDA’s premarket approval of LungFX for UTHR as a positive development for the company and the broader transplantation sector. The firm stated that the approval marks another regulatory advancement supporting UTHR’ long-term organ manufacturing strategy. According to the analyst, the milestone further reinforces the company’s potential position in the development of centralized ex vivo lung perfusion technologies. Leerink maintains an Outperform rating on United Therapeutics shares.

In other news, on July 2, United Therapeutics Corporation (NASDAQ:UTHR) announced the acquisition of Thymmune Therapeutics, a privately held biotechnology company focused on developing regenerative thymic cell therapies for potential applications in transplant tolerance, immune disorders, and autoimmune conditions. Thymmune’s technology uses human-induced pluripotent stem cells to create thymic cells that may help restore functional T-cell activity after integration into the body. The company’s lead program, THY-100, is being developed for congenital athymia, a rare and severe disorder caused by the absence of a functioning thymus. United Therapeutics completed the acquisition for $140 million in cash, subject to adjustments, along with potential additional earn-out payments of up to $160 million tied to clinical and regulatory milestones through 2031.

United Therapeutics Corporation (NASDAQ:UTHR) is a biotechnology company focused on treating life-threatening diseases, including pulmonary arterial hypertension (PAH), while addressing the global organ shortage. Its portfolio includes FDA-approved PAH therapies such as Tyvaso, Remodulin, and Orenitram, along with innovations in xenotransplantation, 3D bioprinting, cellular regeneration, and ex vivo lung perfusion to advance organ transplantation.

2. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)

Number of Hedge Fund Holders: 72

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is one of the best healthcare stocks on our list.

TheFly reported on July 6 that HSBC reduced its price target on REGN to $800 from $990 while maintaining a Buy rating on the shares. The adjustment was included in a broader healthcare sector update, where HSBC reviewed the potential for relative sector strength in the second half of the year. The firm highlighted therapeutics as offering attractive risk-adjusted opportunities, identified life sciences tools as a potential beneficiary of a cyclical recovery, and noted that medical technology companies appear undervalued.

Earlier on June 22, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) announced that the U.S. Food and Drug Administration and European Medicines Agency accepted regulatory submissions for cemdisiran as a potential treatment for adults with generalized myasthenia gravis who are positive for anti-acetylcholine receptor antibodies. The FDA granted the application Priority Review, with a target decision expected in November 2026 following the use of a priority review voucher. A European Commission decision is anticipated during the second half of 2027. The regulatory filings are supported by results from the Phase 3 NIMBLE study, which evaluated subcutaneous dosing of cemdisiran every 12 weeks in adults with symptomatic gMG, including patients who may also receive standard immunosuppressive therapies.

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a leading biopharmaceutical company developing life-changing medicines for serious diseases. It leverages advanced genetic research, data analytics, and proprietary platforms like VelociSuite, Regeneron Genetics Center, and genetic medicine technologies to accelerate drug discovery and create targeted therapies.

1. Abbott Laboratories (NYSE:ABT)

Number of Hedge Fund Holders: 73

Abbott Laboratories (NYSE:ABT) is one of the best healthcare stocks on our list.

TheFly reported on July 6 that Evercore ISI analyst Vijay Kumar reduced the firm’s price target on Abbott Laboratories to $112 from $120 while maintaining an Outperform rating on the shares. The updated target was included in the firm’s second-quarter outlook for the MedTech, Life Sciences Tools, and Diagnostics industries. Evercore ISI noted that sector conditions remain supported by relatively healthy procedure volumes and capital spending trends, according to a research note shared with investors.

Earlier on July 1, Tandem Diabetes Care announced that its t: slim X2 insulin pump featuring Control-IQ+ automated insulin delivery technology is now compatible with Abbott Laboratories (NYSE:ABT)’s FreeStyle Libre 3 Plus continuous glucose monitoring sensor across five countries. The expansion provides users in the United Kingdom, Switzerland, Sweden, Finland, and Italy with additional CGM options while using Tandem’s automated insulin delivery system. The company expects to broaden availability to more European markets, including Belgium, the Netherlands, and Germany, during 2026. Tandem stated that expanding sensor compatibility supports greater flexibility for people using automated insulin delivery technology and enhances choice within its diabetes management ecosystem.

Abbott Laboratories (NYSE:ABT) is a global healthcare innovator advancing medical devices, diagnostics, nutrition, and pharmaceuticals. Its key innovations include FreeStyle Libre continuous glucose monitoring, AVEIR leadless pacemakers, and digital health technologies, while expanding access to advanced healthcare solutions worldwide.

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