In this article, we will discuss 10 Best Long Term Healthcare Stocks to Buy.
Investing in healthcare stocks offers a combination of defensive stability and long-term growth potential, supported by consistent demand for medical services, pharmaceuticals, and healthcare technologies. As a non-cyclical sector, healthcare demand typically remains steady regardless of economic conditions, which can help provide portfolio balance during periods of market volatility. Long-term structural trends, including an aging global population and rising chronic disease prevalence, continue to support sustained demand for treatments, diagnostics, and healthcare services worldwide. At the same time, ongoing innovation across biotechnology, drug development, medical devices, and artificial intelligence applications is expanding treatment capabilities and improving research efficiency, creating new commercial opportunities across the sector.
Despite these favorable fundamentals, healthcare stocks have faced pressure from policy uncertainty, regulatory scrutiny, and shifting investor focus toward artificial intelligence and technology sectors. In the U.S., factors such as Medicare drug price negotiations under the Inflation Reduction Act, potential pharmaceutical tariffs, and proposed most-favored-nation drug pricing frameworks have weighed on sentiment. Additional concerns have included potential funding changes at regulatory and research agencies, evolving healthcare policy for insurance programs, and the ongoing patent cliff facing several large pharmaceutical products.
However, many of these risks appear increasingly reflected in valuations, with healthcare stocks trading near multi-decade lows relative to broader equity markets entering 2026. Meanwhile, regulatory systems remain functional, research funding outlooks appear more stable than previously feared, and innovation momentum continues across areas such as obesity, immunology, neurodegenerative disease, and AI-enabled drug discovery. Companies are also adapting through supply chain reshoring, direct-to-consumer distribution models, and strategic capital investment, positioning the sector for potential recovery as policy clarity improves.
With this context in mind, here is a list of the 10 best long term healthcare stocks to buy.
Our Methodology
For this article, we used an online stock screener to extract a list of healthcare stocks with over 75% revenue growth in the past five years. Next, we ranked those stocks in ascending order based on the number of hedge funds holding stakes in each stock as of Q3 2025. We assessed hedge fund ownership of each stock using Insider Monkey’s hedge fund 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. 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 Long Term Healthcare Stocks to Buy
10. Ascentage Pharma Group International (NASDAQ:AAPG)
Number of Hedge Fund Holders: 2
5-year Revenue Growth: 130.37%
On January 14, Rodman & Renshaw initiated coverage of Ascentage Pharma Group International (NASDAQ:AAPG) with a Buy rating and a $48 price target, citing the company’s differentiated hematology-focused pipeline and progress across multiple clinical-stage assets. The firm views Ascentage’s approach to addressing drug resistance in blood cancers as a key driver of upside as its next-generation programs advance toward clinical validation.
On February 5, 2026, Ascentage Pharma Group International (NASDAQ:AAPG) announced that its next-generation BTK-targeted protein degrader, APG-3288, received investigational new drug clearance from China’s Center for Drug Evaluation, shortly after securing a similar clearance from the U.S. FDA. The company plans to initiate a multicenter Phase I trial in patients with relapsed or refractory hematologic malignancies. Unlike traditional BTK inhibitors, APG-3288 uses PROTAC technology to degrade both wild-type and mutant BTK, potentially overcoming resistance seen with existing therapies. For investors, the dual IND clearances meaningfully de-risk the program and support faster global clinical development.
Ascentage Pharma Group International (NASDAQ:AAPG) is a clinical-stage biotechnology company focused on developing novel small-molecule therapies for cancers and age-related diseases. Founded in 2009, the company is headquartered in Suzhou, China. Ascentage Pharma is one of the 10 best long term healthcare stocks to buy.
9. Lipocine Inc. (NASDAQ:LPCN)
Number of Hedge Fund Holders: 2
5-year Revenue Growth: 132.45%
On January 21, H.C. Wainwright raised its price target on Lipocine Inc. (NASDAQ:LPCN) to $15 from $7 and maintained a Buy rating on the shares, citing the favorable safety profile observed for LPCN 1154. The firm sees the program as a potential value driver as it advances through late-stage development, particularly given the significant unmet need in postpartum depression and the potential for differentiation if safety and efficacy data remain strong.
On January 20, Lipocine Inc. (NASDAQ:LPCN) announced that enrollment and participant dosing have been completed in its Phase 3 clinical trial evaluating LPCN 1154 for the treatment of postpartum depression. The company expects to report topline safety and efficacy results early in the second quarter of 2026, according to CEO Mahesh Patel. Completion of enrollment marks an important milestone and reduces execution risk heading into a key clinical readout that could serve as a major catalyst for the stock if results are positive.
Lipocine Inc. (NASDAQ:LPCN) is a clinical-stage biopharmaceutical company focused on developing oral, lipid-based hormone therapies for men’s and women’s health. Founded in 1997 and headquartered in Salt Lake City, Utah, the company is advancing therapies targeting areas with meaningful unmet medical needs.
