11 Best Performing Healthcare Stocks to Buy Now

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1. Tempus AI, Inc. (NASDAQ:TEM)

YTD Performance: 81.78%

Number of Hedge Fund Holders: 17

Tempus AI Inc. (NASDAQ:TEM) is a healthcare technology company that brings AI and machine learning to healthcare. The company provides next-generation diagnostics across various disease areas by employing technology capabilities. It leverages analytics and data to personalize medicine and has a product line spanning data, genomics, and AI applications. Tempus AI, Inc. (NASDAQ:TEM) focuses on building platforms for cardiology, oncology, infectious diseases, neuropsychiatry, and radiology.

On May 7, analyst Daniel Brennan of TD Cowen maintained a Buy rating on Tempus AI, Inc. (NASDAQ:TEM), retaining the price target of $62.00. The analyst based the rating on the company’s strong fiscal Q1 performance, as it reported better-than-expected gross margins and EBITDA along with a 3% sales beat.

The core Genomics segment and the recently acquired Ambry business are the primary contributors to this performance. The overall financial outlook for Tempus AI, Inc. (NASDAQ:TEM) remains positive despite a higher-than-expected cash burn due to one-off factors that are expected to simmer down in the following quarter.

Management raised the full-year 2025 revenue guidance to $1.25 billion, reflecting around 80% year-over-year growth. This notable improvement in guidance highlights robust performance in the genomics and data businesses and the contribution from the AstraZeneca-Pathos deal.

Overall, TEM ranks first among the best-performing healthcare stocks to buy now. While we acknowledge the potential of best-performing healthcare stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TEM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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