In this article, we will discuss the 11 Best Mid-cap Healthcare Stocks to Buy According to Hedge Funds.
As per the US Bank, the healthcare in the US exhibits a large and intricate ecosystem, which is characterized by size, complexity, and influence on the broader national economy. Furthermore, the healthcare sector happens to be one of the largest sectors in the S&P 500, making up ~10% of the market capitalization of the index. Therefore, it provides investors with a significant opportunity to invest.
Domains Exhibiting Increased Investment Appeal
According to Terry Sandven, chief equity strategist, U.S. Bank Asset Management Group, weight loss, tools and diagnostics, data analytics, robotics, medical devices, and insurance are some of the areas possessing the highest investment appeal. Healthcare’s rich data offers a strong opportunity for data analytics companies, with the products of leading technology giants extending into healthcare.
While the sector has significant volatility and risk, due to the success/failure of new drugs, continued regulatory pressures, increased costs, and technological disruption, it also has strong growth potential, thanks to the fundamental demographic shifts and increased burden of chronic disease, according to the US Bank.
Amidst these trends, we will now have a look at the 11 Best Mid-cap Healthcare Stocks to Buy According to Hedge Funds.
A healthcare professional wearing a lab coat, holding a vial of medication.
Our Methodology
To list the 11 Best Mid-cap Healthcare Stocks to Buy According to Hedge Funds, we used a screener to shortlist the stocks catering to the broader healthcare sector. Next, we chose the stocks with a market cap of ~$2 billion – $10 billion. Finally, we selected the stocks that were popular among hedge funds. We also mentioned the hedge fund sentiments around each stock, as of Q1 2025.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Best Mid-cap Healthcare Stocks to Buy According to Hedge Funds
11. Telix Pharmaceuticals Limited (NASDAQ:TLX)
Market Cap as of July 3: $5.37 billion
Number of Hedge Fund Holders: N/A
Telix Pharmaceuticals Limited (NASDAQ:TLX) is one of the 11 Best Mid-cap Healthcare Stocks to Buy According to Hedge Funds. The research firm stated that Telix Pharmaceuticals Limited (NASDAQ:TLX) is the most diversified, comprehensively positioned, and standalone publicly-traded radiopharmaceuticals company. The firm also cited the commercial-stage portfolio of targeted radiotherapy agents catering to the unmet needs in oncology. The company announced that its next-generation PSMA-PET imaging agent for prostate cancer, Gozellix® (kit for the preparation of gallium-68 (68Ga) gozetotide injection), is commercially available nationally in the US.
Telix Pharmaceuticals Limited (NASDAQ:TLX) highlighted that Gozellix builds on proven diagnostic excellence to offer early and accurate detection of metastases at initial staging, with 90% specificity. Telix Pharmaceuticals Limited (NASDAQ:TLX) remains focused on innovation in PSMA imaging, and Gozellix was the result of this commitment. It provides a new level of flexibility in distribution, production, and scheduling, together with a high standard of service and reliability.
Notably, PSMA-PET imaging has been established as the standard of care for staging and identifying biochemical recurrence of prostate cancer. That being said, only a relatively small fraction of 3.4 million men having prostate cancer in the US benefited, mainly due to access and availability challenges. Gozellix’s enhanced formulation provides a greater level of patient access as well as convenience via an extended transportation distance and clinical administration window. Telix Pharmaceuticals Limited (NASDAQ:TLX)’s stock has a consensus price objective of $22.92.
