In this article, we will look at the 10 Best Medical Research Stocks to Buy According to Hedge Funds.
On January 27, Sarah James, Cantor Fitzgerald analyst, appeared on CNBC’s ‘Squawk on the Street’ to talk about the healthcare insurance sector and the stocks coming under pressure. Calling this “another great opportunity to buy”, she stated that we have a dislocation in Medicare Advantage. When she looks across what is happening to the stocks, it’s really not allocating correctly, with some companies heavily exposed to Medicare Advantage, while others have a very consistent, strong pricing discipline, diversified book that are getting taken down with the group, and they really shouldn’t be.
She is hoping that it gets better, stating that typically in the next two months, there is going to be a revision with it going up by a couple of hundred basis points. However, the backdrop of this issue is the rates of insufficient cover costs for seniors for several years. Expectations were that this was the year, 2027, that things were going to start aligning and getting better, but instead, we saw CMS going in the opposite direction.
READ ALSO: 13 Oversold NASDAQ Stocks to Invest In and 12 Best Healthcare Stocks Under $50 to Invest In.
In addition, they put in some additional headwinds that are debatable at best on whether they are accurately representing what is happening in the coding environment. She is hoping for a robust conversation back and forth between the government and the payers over the next couple of months, and a positive revision. That said, James was of the view that we are not in the environment we thought we would be in, and it is probably going to end up in some exits, which will likely be challenging for seniors come 2027. She added that the rate proposal shows more political influence than before, and that the final rate announcement is expected in early mid-April.
With these trends in view, let’s look at the best medical research stocks to buy according to hedge funds.
Our Methodology
We used stock screeners to find the best medical research stocks and then chose the top 10 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 February 12.
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 Medical Research Stocks to Buy According to Hedge Funds
10. Biogen Inc. (NASDAQ:BIIB)
Number of Hedge Fund Holders: 59
Biogen Inc. (NASDAQ:BIIB) is one of the best medical research stocks to buy according to hedge funds. On February 10, Wedbush lifted the price target on Biogen Inc. (NASDAQ:BIIB) to $187 from $178, maintaining a Neutral rating on the shares. The firm told investors that Biogen Inc. (NASDAQ:BIIB) delivered another top-/bottom-line beat in its fiscal Q4 and full year 2025 financial results, and commended the management’s efforts in realigning the cost base. However, it added that revenue growth drivers are the critical missing piece for the turnaround story.
RBC Capital also adjusted the price target on Biogen Inc. (NASDAQ:BIIB) to $233 from $217 on February 9, maintaining an Outperform rating on the shares. According to the firm, the company successfully delivered its key objective of showing stability and predictability in the quarter, both in guidance and numbers. It believes that the company has a solid foundation for a catalyst-rich next year, supported by factors such as solid commercial execution, growth across key franchises, and improved expense discipline.
Biogen Inc. (NASDAQ:BIIB) also received a rating update from BMO Capital the same day, which revised the price target on the stock to $196 from $165 and maintained a Market Perform rating on the shares after its fiscal Q4 earnings beat.
Biogen Inc. (NASDAQ:BIIB) is a global biopharmaceutical company that discovers, develops, and delivers advanced therapies for serious diseases across the globe. Its medicine portfolio treats multiple sclerosis (MS), spinal muscular atrophy (SMA), Alzheimer’s disease, and amyotrophic lateral sclerosis (ALS). The company has an elaborate marketed product portfolio for MS, including TECFIDERA, VUMERITY, AVONEX, PLEGRIDY, TYSABRI, and FAMPYRA. It also markets SPINRAZA to treat SMA, SKYCLARYS for the treatment of Friedreich’s Ataxia, and other drugs.
9. Gilead Sciences, Inc. (NASDAQ:GILD)
Number of Hedge Fund Holders: 61
Gilead Sciences, Inc. (NASDAQ:GILD) is one of the best medical research stocks to buy according to hedge funds. On February 11, BofA lifted the price target on Gilead Sciences, Inc. (NASDAQ:GILD) to $162 from $154, maintaining a Buy rating on the shares. The firm told investors in a post-earnings note that it is confident in 2026 growth for the company due to solid fiscal Q4 dynamics, adding that it no longer models Yeztugo cannibalization of Descovy sales in 2026.
The rating update came after Gilead Sciences, Inc. (NASDAQ:GILD) announced its fiscal Q4 and full year 2025 results on February 10, stating that 2025 was a strong year for the company overall, marked by the successful launch of Yeztugo, which is the world’s first twice-yearly HIV prevention therapy in the country, and the continued growth for Biktarvy and Descovy.
Gilead Sciences, Inc. (NASDAQ:GILD) further reported that the total fiscal Q4 revenues rose 5% to $7.9 billion compared to the prior year period, driven primarily by the increased sales of HIV and Liver Disease products and partially offset by lower sales of Veklury®.
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.
