In this article, we will look at the 11 Best Performing Healthcare Stocks to Buy Now.
Trump’s Healthcare Executive Order Brings a Win
On April 15, CNBC reported that President Trump’s healthcare-focused executive order brought in a win for the sector. Trump directed his health department to collaborate with Congress to revamp a law allowing Medicare to negotiate prescription drug prices. The announcement seeks to bring a change that the pharmaceutical company has lobbied for. Since the negotiation process is included in legislation, Trump’s executive order cannot implement the change itself. However, it directs Secretary of Health and Human Services Robert F. Kennedy Jr. to join hands with Congress and change it.
CNBC reported that drug makers have been working to delay the eligibility timeline for small-molecule drugs to be available for price negotiations by four years. This typically includes pills and most medications. This goes hand in hand with the 13-year wait until more complex biotech drugs are eligible for Medicare price negotiations.
Trump’s wide-ranging executive order also focuses on slashing healthcare costs. It comes a day after the administration instituted a national security report on the pharma industry. CNBC called the report “a precursor to sector-specific tariffs.”
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Medicare’s negotiating powers have been a subject of contention, as drug makers have opined that they would suppress innovation and have rallied against the time frame for negotiation eligibility for most drugs. The law now allows the government to negotiate prices for drugs with no competition, which includes complex biotech or biologic medications after 13 years on the market, but 9 years for their administration as capsules and pills.
Although they did not provide specifics, White House officials told reporters that other changes to the negotiation process would yield more savings than those attained during the first round under the Biden administration. While the Biden administration negotiated price cuts as steep as 79% for the first ten most expensive drugs to the Medicare program, the Trump administration would negotiate prices for the following 15 medications. This includes Pfizer’s cancer drugs Ibrance and Xtandi, as well as Novo Nordisk’s blockbuster diabetes and weight-loss treatments Ozempic and Wegovy.
With these trends in view, let’s look at the best performing healthcare stocks to invest in now.
A healthcare provider holding an MRI scan of a patient with a traumatic brain injury.
Our Methodology
We used Finviz to screen healthcare stocks and selected the best performers based on their year-to-date (YTD) performance, as of May 9, 2025. We also included the number of hedge fund holders for each stock as of Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of year-to-date performance.
Why do we care about what hedge funds do? 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
11 Best Performing Healthcare Stocks to Buy Now
11. Alignment Healthcare, Inc. (NASDAQ:ALHC)
YTD Performance: 34.40%
Number of Hedge Fund Holders: 29
Alignment Healthcare, Inc. (NASDAQ:ALHC) offers a consumer-centric platform for delivering personalized healthcare solutions through its Medicare Advantage plans. The company also offers health options via its Alignment Health Plan. It ranks 11th on our list of the best-performing healthcare stocks to buy now.
In a report issued on May 1, Whit Mayo from Leerink Partners reiterated a Buy rating on Alignment Healthcare, Inc. (NASDAQ:ALHC) and set a price target of $20.00. The company’s positive financials in its latest earnings report have led to bullish investor sentiment, with revenue undergoing a notable 47.5% increase to $926.9 million in fiscal Q1 2025.
Alignment Healthcare, Inc. (NASDAQ:ALHC) also reported a 31.7% increase in Medicare Advantage membership, totaling around 217,500 members in the same quarter. Supported by robust enrollment growth and clinical performance, the company surpassed its high-end guidance on key performance indicators, raising the midpoint of its 2025 guidance. Alignment Healthcare, Inc. (NASDAQ:ALHC) expects adjusted EBITDA between $10 million and $18 million in fiscal Q2 2025.
10. Verona Pharma plc (NASDAQ:VRNA)
YTD Performance: 36.35%
Number of Hedge Fund Holders: 42
Verona Pharma plc (NASDAQ:VRNA) is a UK-based biopharmaceutical company that develops and commercializes therapeutics for treating respiratory diseases with unmet medical needs. The FDA’s June 2024 approval of its drug Ohtuvayre to treat chronic obstructive pulmonary disease was a significant catalyst for the company. Analysts project this blockbuster drug’s sales potential to top $1 billion by 2029.
On May 2, Wells Fargo analyst Tiago Fauth raised the firm’s price target on Verona Pharma plc (NASDAQ:VRNA) to $107 from $93, keeping an Overweight rating on the shares. The analyst noted that the fiscal Q1 2025 Ohtuvayre sales of $71 million marked the third consecutive quarter of the drug tracking above Trelegy and Breztri, saying that this “easily justifies ~$3 billion in peak sales, with ~$5 billion+ being a real possibility.”
The analyst further said that Verona Pharma plc (NASDAQ:VRNA) added an incremental $31 million and $35 million in fiscal Q4 2024 and fiscal Q1 2025, respectively, reflecting accelerating growth. This shows that there are reasons to believe in the company’s continually accelerating growth.
Roth Capital also raised the firm’s price target on Verona Pharma plc (NASDAQ:VRNA) to $92 from $83 on April 30, keeping a Buy rating on the stock after it reported fiscal Q1 2025 results.
9. Option Care Health, Inc. (NASDAQ:OPCH)
YTD Performance: 37.24%
Number of Hedge Fund Holders: 40
Option Care Health, Inc. (NASDAQ:OPCH) provides infusion therapy and similar ancillary healthcare services through a national network of full-service pharmacies. It holds contracts with hospitals, physicians, third-party payers, managed care organizations, and other referral sources to provide complex compounded solutions and pharmaceuticals to patients. The company’s home infusion services include bleeding disorder therapies, nutrition support, anti-infectives, and more.
On April 30, UBS analyst A.J. Rice upgraded the rating on Option Care Health, Inc. (NASDAQ:OPCH) to a Buy and set a price target of $40.00, highlighting the company’s strategic positioning and strong financial performance. The company’s fiscal Q1 2025 financials also reflected a robust earnings momentum.
Effective inventory management supports the analyst’s belief that the impact of STELARA, a prescription drug that treats moderate to severe plaque psoriasis, will be less severe than expected. STELARA’s integration in Option Care Health, Inc.’s (NASDAQ:OPCH) earnings is anticipated to support long-term growth. This is especially true as the healthcare industry shifts care from institutional settings to home, which is proving beneficial to Option Care Health, Inc.’s (NASDAQ:OPCH) diversified drug portfolio.
The analyst also reasoned that the company’s solid free cash generation ability and balance sheet position it well for strategic acquisitions in a fragmented market, supporting the buy rating. The company is also well-positioned to manage potential tariff impacts through its inventory management, strategic contracts, and risk mitigation related to cost inflation.
8. Corcept Therapeutics Incorporated (NASDAQ:CORT)
YTD Performance: 39.37%
Number of Hedge Fund Holders: 29
Corcept Therapeutics Incorporated (NASDAQ:CORT) is a biopharmaceutical company that develops and commercializes therapies that adjust the effects of cortisol, a hormone that regulates various bodily functions. The company’s flagship product, Korlym, is FDA-approved for treating Cushing’s syndrome, a disorder caused by excessive cortisol production. The stock ranks eighth among the best-performing healthcare stocks to invest in.
On May 7, Canaccord Genuity analyst Edward Nash maintained their bullish stance on Corcept Therapeutics Incorporated (NASDAQ:CORT), giving it a Buy rating. The analyst reasoned that while the company experienced a weaker fiscal Q1 2025 due to shipping and packing complications, management is confident about its ability to resolve these issues and support strong performance in the coming quarters.
In fact, the analyst believes that Corcept Therapeutics Incorporated’s (NASDAQ:CORT) current weakness presents an attractive buying opportunity as its Korlym product is expected to see continuous revenue growth and growing demand.
In addition, the company’s expansion into oncology is a promising development, especially in its upcoming NDA filing for relacorilant in platinum-resistant ovarian cancer. According to the analyst, the drug has blockbuster potential following its potential approval, further augmenting Corcept Therapeutics Incorporated’s (NASDAQ:CORT) market opportunities.
7. Ascentage Pharma Group Internat (NASDAQ:AAPG)
YTD Performance: 39.87%
Number of Hedge Fund Holders: N/A
Ascentage Pharma Group Internat (NASDAQ:AAPG) is a clinical-stage biotech company developing novel therapies for hepatitis B virus, age-related diseases, and cancers. On April 28, the company released results from five preclinical studies featuring five of its drug candidates.
The Chief Medical Officer of Ascentage Pharma, Dr. Yifan Zhai, said that encouraging data from their investigation assets sheds a positive light on its strong and innovative pipeline. The studies are anticipated to catalyze and complement Ascentage Pharma Group Internat ‘s (NASDAQ:AAPG) clinical development. The company has plans to actively advance the clinical development of these programs to expand its treatment options.
On April 21, the company announced that two of its proprietary novel drugs have been included in the 2025 Chinese Society of Clinical Oncology Guidelines. In a report issued on March 27, Brian Cheng from J.P. Morgan initiated coverage of Ascentage Pharma Group Internat (NASDAQ:AAPG) with a Buy rating and set a price target of $27.00.
6. Akero Therapeutics, Inc. (NASDAQ:AKRO)
YTD Performance: 43.24%
Number of Hedge Fund Holders: 41
Akero Therapeutics, Inc. (NASDAQ:AKRO) is a clinical-stage company that develops transformational treatments for patients with serious metabolic diseases that have high unmet medical needs, such as metabolic dysfunction-associated steatohepatitis (MASH), for which no approved therapies exist.
The company’s primary product is efruxifermin (EFX), which treats MASH and is undergoing phase 3 of clinical trials. Efruxifermin (EFX) is an analog of fibroblast growth factor 21, an endogenously expressed hormone that regulates carbohydrates, lipids, and proteins while offering protection against cellular stress.
Bank of America Securities analyst Jason Zemansky maintained a Buy rating on Akero Therapeutics, Inc. (NASDAQ:AKRO) on May 6 and set a price target of $63.00.
Clear Street also initiated coverage of the stock on April 30 with a Buy rating and $49 price target. In a research note, the analyst told investors that Akero Therapeutics, Inc.’s (NASDAQ:AKRO) sole clinical asset and FGF21R agonist, Efruxifermin, holds “best-in-class potential” for metabolic dysfunction-associated steatohepatitis treatment. It also has a high probability of success in ongoing Phase 3 trials, amassing further optimistic investor sentiment. The analyst also reasoned that Efruxifermin’s “superior efficacy” compared to its competitors in the F4 cirrhosis market “establishes clear differentiation.”
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.
4. iRhythm Technologies, Inc. (NASDAQ:IRTC)
YTD Performance: 52.71%
Number of Hedge Fund Holders: 24
iRhythm Technologies, Inc. (NASDAQ:IRTC) is a digital healthcare company that provides design, development, and commercialization of device-based technology. It provides ambulatory cardiac monitoring services, along with solutions to detect, predict, and prevent disease.
On May 2, analyst William Plovanic from Canaccord Genuity revisited iRhythm Technologies, Inc. (NASDAQ:IRTC) and maintained a Buy rating on the stock with a $139.00 price target. The analyst highlighted the company’s potential and strong performance, reasoning that it underwent a significant 20.3% year-over-year growth in its fiscal Q1 2025 revenue, exceeding internal and consensus estimates.
The growth was attributed to the success and unexpected strength of iRhythm Technologies, Inc.’s (NASDAQ:IRTC) Zio AT product, which is anticipated to continue its positive trajectory. The analyst further said the company raised its profitability and revenue guidance for fiscal year 2025, demonstrating confidence in sustained product demand.
iRhythm Technologies, Inc. (NASDAQ:IRTC) is also progressing on regulatory fronts. It plans to submit the Zio Monitor in Q3 and complete compliance efforts by the end of 2025. It is the fourth best-performing healthcare stock to buy now on our list.
3. Soleno Therapeutics, Inc. (NASDAQ:SLNO)
YTD Performance: 70.81%
Number of Hedge Fund Holders: 39
Soleno Therapeutics, Inc. (NASDAQ:SLNO) ranks third on our list of the best-performing healthcare stocks to invest in right now. It is a clinical-stage biopharmaceutical company that develops and commercializes novel therapeutics to treat rare diseases. The company focuses on the treatment of neurobehavioral and metabolic disorders. Its lead candidate, Diazoxide Choline Controlled-Release (DCCR), is an oral tablet that treats Prader-Willi Syndrome (PWS).
On April 14, Soleno Therapeutics, Inc. (NASDAQ:SLNO) announced that its VYKAT XR extended-release tablets are now commercially available in the United States for the treatment of Prader-Willi syndrome, which was approved by the US Food and Drug Administration on March 26, 2025. The company has developed an elaborate support program called Soleno ONE to help healthcare providers, caregivers, and patients in accessing the drug.
On April 15, H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on Soleno Therapeutics, Inc. (NASDAQ:SLNO) and set a price target of $100.00.
2. TransMedics Group, Inc. (NASDAQ:TMDX)
YTD Performance: 78.83%
Number of Hedge Fund Holders: 29
TransMedics Group, Inc. (NASDAQ:TMDX) is a commercial-stage medical technology company that develops and commercializes an organ care system platform. The company focuses on human organ preservation for transplantation to address the limitations of cold storage organ preservation. It takes the second spot on our list of the top-performing healthcare stocks to invest in now.
On April 29, Piper Sandler analyst Matt O’Brien raised the firm’s price target on TransMedics Group, Inc. (NASDAQ:TMDX) to $105 from $90, keeping an Overweight rating on the shares. He then revised the rating on May 6, upgrading it to Buy and maintained a price target of $105.00.
The firm says that it has obtained additional details on the company’s next-generation devices and upcoming significant studies at the International Society for Heart and Lung Transplantation conference.
The clinical trials are a key endeavor for the company, leading to increased positive sentiments for TransMedics Group, Inc. (NASDAQ:TMDX) by Piper Sandler. The firm is also confident that the company is revolutionizing the organ market, which is expected to push the stock higher, even though it will take time.
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.
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