10 Hot Healthcare Stocks To Buy Now

Published February 3, 2023 at 1:19 pm EST Updated August 19, 2026 at 9:19 am EDT

In this article, we discuss the 10 hot healthcare stocks to buy now.

The rise of consumer prices has often lagged behind healthcare inflation, which includes costs for doctor visits, surgeries, and prescription drugs. This trend has been especially noticeable during economic downturns, where overall inflation slows while medical prices still rise 2-3%. However, in 2022, the US saw an inflation rate not seen in decades. Even top health stocks like Pfizer Inc. (NYSE:PFE), Eli Lilly and Company (NYSE:LLY), and AbbVie Inc. (NYSE:ABBV) were affected by this. As healthcare delivery systems faced higher costs due to shortages in areas such as nursing and supplies, consumers felt the same financial pressures during the year.

The healthcare industry faces tough conditions in 2023 due to persistently high inflation and labor shortages. However, a McKinsey report predicts improvement efforts will help the industry overcome these challenges starting in 2024. Certain segments are expected to see higher growth as shifts in profit pools will be affected by several different factors.

The McKinsey report suggests that there will be ongoing growth for healthcare services and technology (HST) profit pools. 2023 is expected to bring robust growth in the sector as providers and payers increase technology adoption. The estimated CAGR for 2021 to 2026 is 10%, reaching $81 billion by 2026. This is an increase from last year’s July estimate, driven by higher demand from payers and providers seeking improved efficiency. This growth makes HST the fastest-growing sector in healthcare. The biggest boost will come from software and platforms.

The pharmacy services sector faced worker shortages and inflationary pressure in 2022. However, 2023 is expected to bring growth. The growth rate is projected to remain steady from 2021 through 2026, reaching $65 billion in profit pools by 2026 from $55 billion in 2021. This growth is mostly due to continued drug utilization and higher specialty drug prices but is partially offset by reimbursement pressure, declining profit margins, and increased specialty generic and biosimilar growth.

AI utilization in healthcare & medicine is surging in 2023. Machine learning can offer data driven CDS to healthcare professionals, leading to increased revenue prospects. AI-powered computers can analyze data at a faster pace, potentially resulting in quicker research advancements. According to Insider Intelligence, AI in healthcare is projected to grow at an annual rate of 48% between 2017 and 2023. The utilization of AI in healthcare holds great promise for enhancing patient outcomes and reducing healthcare expenses. With a growing population, the demand for health services is expected to rise.

Prnewswire.com forecasts that the global telemedicine market will reach $197.55 billion at a CAGR of 24.12% in 2023-2028. Telemedicine offers many benefits, including reducing healthcare costs, improving efficiency and profitability, and providing patients with improved access to medical services. In recent years, telemedicine has seen significant growth. It enables patients to connect with doctors from a distance, reducing the financial burden of healthcare. As a result, many healthcare providers are eager to adopt digital health technologies to take advantage of these benefits.

Total health expenditure is expected to continue on an upward trend across the globe for the next five years. This growth is closely correlated with industry revenues in the health insurance world. However, McKinsey has cautioned that macro uncertainty will persist in part because the enhanced premium subsidies created by the American Rescue Plan Act have expired, and as a result, pricing and consumer participation may face headwinds in the coming months.

Our Methodology

For this article we first used stock screeners to identify healthcare stocks that have gained at least 2% year to date in 2023 and have an average 3-month volume of more than 5 million as of January 31. From this resultant dataset we picked the stocks with highest volumes and share price gains. The list is ranked in ascending order of average 3-month share volume. We also listed the number of hedge funds in each stock so that you can identify the healthcare stocks that are favored by hedge funds.

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Hot Healthcare Stocks To Buy Now

10. Invitae Corporation (NYSE:NVTA)

Number of Hedge Fund Holders: 20

YTD Perf: 26.88%

Avg Volume: 8.2M

Invitae Corporation (NYSE:NVTA) a medical genetics company, integrates genetic information into mainstream medicine to improve the healthcare of people in the United States, Canada, and internationally. On January 9, Invitae reported preliminary, unaudited financial results for the fourth quarter and full-year 2022, including revenue, cash consumption, and commercial performance metrics. The company generated approximately $516 million in revenue in 2022, which represents a year-over-year growth of approximately 12% from $460 million in 2021. The fourth quarter of 2022 showed a revenue of around $122 million, compared to $126 million in the same period of the previous year.

At the end of the third quarter of 2022, 20 hedge funds in the database of Insider Monkey held stakes worth $129.6 million in Invitae Corporation, compared to 21 in the preceding quarter worth $189.6 million.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Deerfield Management is a leading shareholder in Invitae Corporation with 206.9 million shares worth more than $162.2 million.

Just like Pfizer Inc., Eli Lilly and Company, and AbbVie Inc., Invitae Corporation is one of the hot healthcare stocks to buy now.

9. Geron Corporation (NASDAQ:GERN)

Number of Hedge Fund Holders: 20

YTD Perf: 36.36%

Avg Volume: 8.5M

Geron Corporation (NASDAQ:GERN) a late-stage clinical biopharmaceutical company, focuses on the development and commercialization of therapeutics for myeloid hematologic malignancies. On January 6, Geron Corporation declared the pricing of a larger, underwritten public offering that includes 55,876,297 shares of its common stock being sold at a public offering price of $2.45 per share and pre-funded warrants to purchase 25,000,000 shares of its common stock. The pre-funded warrants are being sold at a public offering price of $2.449 per pre-funded warrant.

At the end of the third quarter of 2022, 16 hedge funds in the database of Insider Monkey held stakes worth $138 million in Geron Corporation, compared to 12 in the preceding quarter worth $98.9 million.

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm RA Capital Management is a leading shareholder in Geron Corporation with 30 million shares worth more than $70.5 million.

8. Teva Pharmaceutical Industries Limited (NYSE:TEVA)

Number of Hedge Fund Holders: 27

YTD Perf: 15.57%

Avg Volume: 9.99M

Teva Pharmaceutical Industries Limited (NYSE:TEVA) is a pharmaceutical company, that develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, and internationally. On January 9, Teva Pharmaceutical Industries announced that it has reached a settlement agreement with 48 US states to resolve allegations that the company played a role in the opioid crisis. The agreement ends claims and lawsuits brought against the company by various state subdivisions, including cities and counties.

On October 20, 2022, Jefferies analyst Glen Santangelo assumed a Hold rating on Teva Pharmaceutical Industries Limited. stock at Buy with a $10 price target.

At the end of the third quarter of 2022, 27 hedge funds in the database of Insider Monkey held stakes worth $573 million in Teva Pharmaceutical Industries Limited, compared to 35 in the preceding quarter worth $733.6 million.

Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Abrams Capital Management is a leading shareholder in Teva Pharmaceutical Industries Limited with 23.9 million shares worth more than $192.9 million.

7. Zomedica Corp. (NYSE:ZOM)

Number of Hedge Fund Holders: 3

YTD Perf: 69.14%

Avg Volume: 10M

Zomedica Corp. (NYSE:ZOM) a veterinary health company, focuses on the unmet needs of clinical veterinarians by developing products for companion animals. On January 17, Zomedica Corp announced a partnership with Structured Monitoring Products, Inc. to bring the innovative VetGuardian remote vital signs monitoring system to veterinary professionals. The system operates with zero-touch technology and will be commercially available soon.

On January 6, 2023, Dawson James analyst Jason Kolbert initiated coverage of Zomedica Corp. stock with a Buy rating and $6 price target, noting that in the multi-billion dollar worldwide veterinary sector, the company is establishing itself as the top provider of a wide range of goods and services.

At the end of the third quarter of 2022, 3 hedge funds in the database of Insider Monkey held stakes worth $251,000 in Aurora Cannabis Inc. (NASDAQ:ACB), compared to 5 in the previous quarter worth $705,000.

6. Aurora Cannabis Inc. (NASDAQ:ACB)

Number of Hedge Fund Holders: 9

YTD Perf: 12.72%

Avg Volume: 10.7M

Aurora Cannabis Inc. produces, distributes, and sells cannabis and cannabis-derivative products in Canada and internationally. On January 4, Aurora Cannabis Inc. completed the sale of its Aurora Polaris location for a total of roughly $15 million. This was previously announced as part of the company’s ongoing restructuring plan.

On January 27, 2023, Stifel analyst W. Andrew Carter maintained a Hold rating on Aurora Cannabis Inc. stock and lowered the price target to C$1.45 from C$1.75.

At the end of the third quarter of 2022, 9 hedge funds in the database of Insider Monkey held stakes worth $47.7 million in Aurora Cannabis Inc., compared to 10 in the previous quarter worth $45.7 million.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Mudrick Capital Management is a leading shareholder in Canopy Growth Corporation (NASDAQ:CGC) with 76.1 million shares worth more than $69.8 million.

In addition to Pfizer Inc., Eli Lilly and Company, and AbbVie Inc., Canopy Growth Corporation is one of the hot healthcare stocks to buy now.

5. Sorrento Therapeutics, Inc. (NASDAQ:SRNE)

Number of Hedge Fund Holders: 10

YTD Perf: 167.99%

Avg Volume: 11M

Sorrento Therapeutics, Inc. (NASDAQ:SRNE) is a clinical-stage and commercial biopharmaceutical company that develops therapies for cancer, autoimmune, inflammatory, viral, and neurodegenerative diseases. On January 31, 2023, H.C. Wainwright analyst Raghuram Selvaraju maintained a Buy rating on Sorrento Therapeutics, Inc. stock and lowered the price target to $13 from $20, noting that the lowered target takes into account the COVID-19 pandemic’s ongoing development.

At the end of the third quarter of 2022, 10 hedge funds in the database of Insider Monkey held stakes worth $13.9 million in Ginkgo Bioworks Holdings, Inc. (NYSE:DNA), compared to 6 the preceding quarter worth $14.3 million.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm D E Shaw is a leading shareholder in Sorrento Therapeutics, Inc. with 5.1 million shares worth more than $7.9 million.

4. Canopy Growth Corporation (NASDAQ:CGC)

Number of Hedge Fund Holders: 13

YTD Perf: 31.17%

Avg Volume: 13M

Canopy Growth Corporation engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical purposes primarily in Canada, the United States, and Germany. On January 3, Canopy Growth Corporation completed its previously announced deals with OEG Retail Cannabis and 420 Investments Ltd. This resulted in the company selling its retail operations in Canada, including the Tweed and Tokyo Smoke store franchises.

On November 7, 2022, Canaccord analyst Matt Bottomley maintained a Hold rating on Canopy Growth Corporation. stock and raised the price target to C$5 from C$4.25.

Among the hedge funds being tracked by Insider Monkey, Sydney-based investment firm Contrarius Investment Management is a leading shareholder in Canopy Growth Corporation with 19.7 million shares worth more than $53.9 million.

At the end of the third quarter of 2022, 13 hedge funds in the database of Insider Monkey held stakes worth $73 million in Canopy Growth Corporation, compared to 10 in the previous quarter worth $21 million.

3. Tilray Brands, Inc. (NASDAQ:TLRY)

Number of Hedge Fund Holders: 16

YTD Perf: 20.45%

Avg Volume: 20.7M

Tilray Brands, Inc. (NASDAQ:TLRY) engages in the research, cultivation, production, marketing, and distribution of medical cannabis products in Canada, the United States, Europe, Australia, New Zealand, Latin America, and internationally. On January 29, Tilray Brands, Inc. announced its financial results for the second quarter that ended on November 30, 2022. The firm appeared in robust financial standing with $433.5 million in cash and marketable securities. It also maintained the leadership position in Canada with 8.3% cannabis market share.

On January 10, 2023, MKM Partners analyst Bill Kirk maintained a Neutral rating on Tilray Brands, Inc. stock and lowered the price target to $3 from $4.

At the end of the third quarter of 2022, 16 hedge funds in the database of Insider Monkey held stakes worth $33.6 million in Tilray Brands, Inc., compared to 14 in the previous quarter worth $12.6 million.

Among the hedge funds being tracked by Insider Monkey, Greenwich, Connecticut-based investment firm Aristeia Capital is a leading shareholder in Tilray Brands, Inc. with 23.6 million shares worth more than $23.3 million.

2. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)

Number of Hedge Fund Holders: 24

YTD Perf: 15.83%

Avg Volume: 23M

Ginkgo Bioworks Holdings, Inc. develops platforms for cell programming. On January 18, the Ukraine Ministry of Health’s Public Health Center teamed up with Ginkgo Bioworks to run a pilot program for testing wastewater in Ukraine. The goal of the pilot program for monitoring pathogens in wastewater is to meet essential public health requirements and give early warning signs for outbreaks of infectious diseases.

On November 28, 2022, Berenberg analyst Gaurav Goparaju initiated coverage of Ginkgo Bioworks Holdings, Inc. stock with a Buy rating and a $6 price target.

At the end of the third quarter of 2022, 24 hedge funds in the database of Insider Monkey held stakes worth $956 million in Ginkgo Bioworks Holdings, Inc., compared to 29 in the preceding quarter worth $575.8 million.

1. Cosmos Health Inc. (NASDAQ:COSM)

Number of Hedge Fund Holders: 1

YTD Perf: 42.32%

Avg Volume: 59.3M

Cosmos Health Inc. (NASDAQ:COSM) operates as a vertically integrated pharmaceutical company. On January 20, Cosmos Health, Inc. announced that it has expanded and revised its previously released non-binding proposal to purchase ZipDoctor Inc. from American International Holdings Corp.

At the end of the third quarter of 2022, 1 hedge fund in the database of Insider Monkey held stakes worth $4000 in Cosmos Health Inc..

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