11 Best Performing Healthcare Stocks to Buy Now

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5. CVS Health Corporation (NYSE:CVS)

YTD Performance: 49.19%

Number of Hedge Fund Holders: 74

CVS Health Corporation (NYSE:CVS) is a health solutions company that operates in four segments: healthcare benefits, health services, pharmacy and consumer wellness, and corporate/other. Apart from being a prominent pharmacy chain, the company is one of the largest health insurers in the United States through its Aetna subsidiary’s operations, ranking it fifth on our list of the best-performing healthcare stocks to invest in now.

On May 1, Michael Cherny from Leerink Partners reiterated a buy rating for the company with a price target of $83.00. The analyst favored CVS Health Corporation (NYSE:CVS) for its positive trajectory, highlighting that its fiscal Q1 2025 results show a promising turnaround.

Healthcare benefits cost trends show stabilization signs, aligning with management’s expectations. Although Aetna’s financials are facing some complexities due to previous period adjustments, the analyst sees the trends as strategic steps to support CVS Health Corporation’s (NYSE:CVS) return to a consistent earnings power. It also has the potential for upward guidance adjustments as trends continue on their stabilization trajectory.

CVS Health Corporation’s (NYSE:CVS) Pharmacy Benefit Management (PBM) segment is also anticipated to outperform, supported by the introduction of preferred formulary options and increased growth in areas like specialty medication, supporting the buy rating.

Additionally, on May 6, Sarah James from Cantor Fitzgerald maintained a Buy rating on CVS Health Corporation (NYSE:CVS) and set a price target of $71.00.

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