In this article, we will look at the 11 Best Strong Buy Healthcare Stocks to Invest In.
On February 23, Steven Wieting, CIO Group chief investment strategist, appeared on CNBC’s ‘The Exchange’ to talk about the stock market and the recent price action in stocks. CNBC reported that staples, healthcare, and utilities are all leading, outperforming since January 1 and showing that this is not a one-day trend but has rather been going on since the turn of the calendar. Wieting stated that a lot is going on in the market, with trends showing AI hardware eating software, its effects on the lending industry for software, and several other undercurrents, with healthcare and energy up, the probability of a US strike on Iran, and oil prices picking up sharply at the expense of growth sentiment. He also cited tariffs at 15% and the situation surrounding them.
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Talking about healthcare, Wieting stated that he is strongly overweight in healthcare because of how badly it performed and how much policy concern played a role in its deep underperformance, which is now catching up. While it is not a wonderful year-to-date performer, he thinks that there is more there, and cited its low correlation to tech and the circumstances there.
Wieting also talked about the shifting AI sentiment, stating that the market narrative has generally gone quite negative on the broader impact of AI, with the market pricing in the ongoing AI infrastructure boom while associated applications drive considerable declines in business costs. He further said that there are likely to be mistakes and exaggerations within the market sentiment associated with AI.
With these broad market trends in view, let’s look at the best strong buy healthcare stocks to invest in.
Our Methodology
We sifted through the Finviz stock screener to compile a list of the best healthcare stocks with analyst consensus Strong Buy ratings and selected the top 11 most popular among elite hedge funds as of Q3 2025. We sourced the hedge fund data from Insider Monkey’s database. The stocks are ranked in ascending order of hedge fund sentiment.
Note: All data was recorded on February 26.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11 Best Strong Buy Healthcare Stocks to Invest In
11. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is one of the best strong buy healthcare stocks to invest in. Teva Pharmaceutical Industries Limited (NYSE:TEVA) announced on February 20 that the U.S. Food and Drug Administration accepted its New Drug Application (NDA) for olanzapine extended-release injectable suspension for the treatment of schizophrenia in adults. TEV-‘749 is specialized to improve real-world treatment adherence and help patients maintain long-term stability, and aims to address a critical treatment gap for people living with schizophrenia.
Management reported that there is currently no long-acting olanzapine formulation without an FDA-required Risk Evaluation and Mitigation Strategy, which mandates administration in a certified healthcare facility and requires a 3-hour post-injection monitoring period. It further stated that TEV-‘749, administered as a once-monthly subcutaneous injection in the Phase 3 SOLARIS trial, exhibited an efficacy and safety profile consistent with currently available olanzapine formulations and did not show any evidence for the need for post-injection monitoring.
In another development, Teva Pharmaceutical Industries Limited (NYSE:TEVA) and Sanofi announced on February 17 positive results from the RELIEVE UCCD long-term extension study of duvakitug, exhibiting durable clinical and endoscopic efficacy maintained over 44 weeks in patients with ulcerative colitis and Crohn’s disease that initially responded to the induction phase. Duvakitug is an investigational human monoclonal antibody targeting TL1A, and RELIEVE UCCD LTE is a double-blind randomized study looking into the long-term efficacy, safety, and tolerability of duvakitug in UC and CD, which are the two most common forms of inflammatory bowel disease.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) develops, produces, and sells medicines. Its operations are divided into the US, Europe, and International Markets geographical segments. Each business segment covers the entire product portfolio in that region, including specialty, generics, and over-the-counter (OTC) products.
10. Ionis Pharmaceuticals, Inc. (NASDAQ:IONS)
Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) is one of the best strong buy healthcare stocks to invest in. Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) released its fiscal Q4 and full-year 2025 earnings on February 25, reporting that total revenue for the year ended December 31, 2025, was $944 million compared to $705 in the previous year, considerably surpassing expectations due to continued commercial success. The company also earned substantial R&D revenue, including a $280 million upfront payment for the global license of sapablursen to Ono Pharmaceutical Co., Ltd. in fiscal Q2 2025. Total revenue for Q4 was $203 million, compared to $227 million in the prior year period.
Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) further reported that operating expenses for the full year were in line with expectations and rose year over year from investments related to commercialization efforts for TRYNGOLZA, DAWNZERA, and WAINUA. Following the rating update, Needham lifted the price target on Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) to $103 from $90 on February 25, maintaining a Buy rating on the shares and telling investors that it sees upside to the company’s 2026 revenue outlook as the year progresses.
Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) develops and commercializes human therapeutic drugs using antisense technology. It functions through the Ionis Core segment, which generates a pipeline of drugs through a novel drug discovery platform.
9. Tenet Healthcare Corporation (NYSE:THC)
Tenet Healthcare Corporation (NYSE:THC) is one of the best strong buy healthcare stocks to invest in. Truist lifted the price target on Tenet Healthcare Corporation (NYSE:THC) to $270 from $240 on February 17 and maintained a Buy rating on the shares, telling investors that it adjusted its model after the company released its fiscal Q4 financial results and 2026 guidance.
Wells Fargo also lifted the price target on Tenet Healthcare Corporation (NYSE:THC) to $265 from $229 on February 16, maintaining an Overweight rating on the shares. It stated in a post Q4 note that while the magnitude of the stock move on already previewed EBITDA and in-line guidance was “surprising,” strong capital return potential and alignment with key market narratives “appear to be important drivers.”
Tenet Healthcare Corporation (NYSE:THC) released its fiscal Q4 and full-year 2025 earnings on February 11, reporting that the net income available to common shareholders in fiscal Q4 was $371 million, or $4.22 per diluted share. Adjusted diluted earnings per share for the quarter rose 36.6% to $4.70 compared to $3.44 in the previous year period.
Tenet Healthcare Corporation (NYSE:THC) provides healthcare services, with its operations divided into the Hospital Operations and Ambulatory Care segments.
8. IQVIA Holdings Inc. (NYSE:IQV)
IQVIA Holdings Inc. (NYSE:IQV) is one of the best strong buy healthcare stocks to invest in. Mizuho cut the price target on IQVIA Holdings Inc. (NYSE:IQV) to $215 from $266 on February 23, reiterating an Outperform rating on the shares and updating its model on the company after the fiscal Q4 report. Truist also lowered the price target on the stock to $245 from $290 on February 19. It maintained a Buy rating on the shares, telling investors that it is updating its model on IQVIA Holdings Inc. (NYSE:IQV) after the re-segmentation following the company’s Q4 earnings, while also reducing its assumed forward EBITDA multiple to 13x from 14x to take into account the near-term AI disruption overhang.
In another development, TD Cowen cut the price target on IQVIA Holdings Inc. (NYSE:IQV) to $174 from $245 on February 17 and maintained a Hold rating on the shares. The firm updated its model following Q4 results and guidance, stating that while it believes risks from AI exist, it is crucial to note that they will play out over the long term, and the impact on CROs isn’t fully clear.
IQVIA Holdings Inc. (NYSE:IQV) provides advanced analytics, clinical research services, and technology solutions for the life sciences industry. Its operations are divided into Technology & Analytics Solutions, Research & Development Solutions, and Contract Sales & Medical Solutions segments.
7. Natera, Inc. (NASDAQ:NTRA)
Natera, Inc. (NASDAQ:NTRA) is one of the best strong buy healthcare stocks to invest in. On February 24, Natera, Inc. (NASDAQ:NTRA) announced results from the SINERGY trial, a Phase 2 study in recurrent or metastatic head and neck squamous cell carcinoma, with the data recently presented in an oral plenary at the 2026 MHNCS. Management reported that 27 patients received initial treatment of either immunotherapy alone or in combination with chemotherapy in the trial, and based on Signatera ctDNA dynamics during treatment, chemotherapy was either escalated or de-escalated.
The study met its primary endpoint and showed that 74% of patients were de-escalated from chemo-immunotherapy to immunotherapy alone, which resulted in a median of 2 chemotherapy cycles across the full cohort and reflects a notable two-thirds reduction from the current standard of care. Natera, Inc. (NASDAQ:NTRA) further reported that the objective response rate came in strong at 63%, comparing favorably to the 36% and 19% ORRs from KEYNOTE-048 patients receiving ICI with and without chemotherapy, respectively. In addition, severe toxicity of grade ≥3 was 48.1%, considerably lower than the 85% and 55% from KEYNOTE-048 patients receiving ICI with and without chemotherapy, respectively.
Natera, Inc. (NASDAQ:NTRA) is a diagnostics company that develops and commercializes molecular testing services, applying its technological services in oncology, women’s health, and organ health. The company provides various diagnostic tests, including Panorama non-invasive prenatal test (NIPT), Vistara, horizon carrier screening (HCS), spectrum pre-implantation genetic screening and spectrum pre-implantation genetic diagnosis, Anora products of conception (POC), and non-invasive paternity testing (PAT).
6. Insmed Incorporated (NASDAQ:INSM)
Insmed Incorporated (NASDAQ:INSM) is one of the best strong buy healthcare stocks to invest in. Mizuho cut the price target on Insmed Incorporated (NASDAQ:INSM) to $204 from $211 on February 24, maintaining an Outperform rating on the shares. The rating update came after the fiscal Q4 report, with the firm stating that the company offered “highly positive comments” on the Brinsupri launch.
Insmed Incorporated (NASDAQ:INSM) reported its fiscal Q4 and full year 2025 results on February 19, reporting total company revenues of $606.4 million for the full year 2025 and BRINSUPRI total revenues of $144.6 million for fiscal Q4 and $172.7 for the full year 2025. ARIKAYCE total revenues came up to $119.2 million for the quarter and $433.8 million for the full year 2025, showing a 19% annual growth and surpassing the upper end of the full year 2025 guidance.
Insmed Incorporated (NASDAQ:INSM) expects full-year 2026 BRINSUPRI® revenues to be at least $1 billion, and reiterated its full-year 2026 ARIKAYCE® revenue guidance of $450 million to $470 million. The company ended fiscal year 2025 with around $1.4 billion of cash, cash equivalents, and marketable securities.
Insmed Incorporated (NASDAQ:INSM) is a global biopharmaceutical company that develops and commercializes therapies for patients with rare diseases. The company focuses on the Brensocatib and Treprostinil Palmitil Inhalation Powder (TPIP) pipeline.
5. The Cigna Group (NYSE:CI)
The Cigna Group (NYSE:CI) is one of the best strong buy healthcare stocks to invest in. On February 17, Truist lifted the price target on The Cigna Group (NYSE:CI) to $350 from $320 while maintaining a Buy rating on the shares, and telling investors that it is adjusting its model following the company’s release of its fiscal Q4 financial results and 2026 guidance. Deutsche Bank also raised the price target on The Cigna Group (NYSE:CI) to $304 from $301 on February 10 and maintained a Buy rating on the shares. It stated that it views the company’s fiscal year 2026 guidance and the FTC deal as possibly a clearing event.
The Cigna Group (NYSE:CI) also received a rating update from TD Cowen on February 9, with the firm lifting the price target on the stock to $338 from $333 while maintaining a Buy rating on the shares following the company’s fiscal Q4 results and FY26 guidance. The firm believes that fiscal Q4 represented a meaningful catalyst for shares, as it removes two key overhangs over the past two years: stop loss and PBM reform.
The Cigna Group (NYSE:CI) provides global health services and operates through the following segments: Evernorth Health Services, Cigna Healthcare, Other Operations, and Corporate.
4. Revolution Medicines, Inc. (NASDAQ:RVMD)
Revolution Medicines, Inc. (NASDAQ:RVMD) is one of the best strong buy healthcare stocks to invest in. Revolution Medicines, Inc. (NASDAQ:RVMD) was initiated with an Outperform rating and a $140 price target by Evercore ISI on February 25. The firm set a $140 price target on the stock, stating that with the expected launch of daraxonrasib, the company is “poised for a potential breakthrough in oncology”. With strategic distractions fading, Evercore sees “a promising entry point” ahead of key Phase 3 data in pancreatic cancer expected in the first half of 2026.
The rating update came the same day Revolution Medicines, Inc. (NASDAQ:RVMD) announced its fiscal Q4 and full year 2025 results, reporting cash, cash equivalents, and marketable securities of $2.0 billion as of December 31, 2025.
Research and development expenses for the quarter were $294.9 million, compared to $188.1 million for the previous year period. The company attributed the increase to a rise in clinical trial and manufacturing expenses for daraxonrasib, zoldonrasib, and elironrasib, along with an increase in personnel-related expenses and stock-based compensation expense related to additional headcount.
Revolution Medicines, Inc. (NASDAQ:RVMD) is a clinical-stage precision oncology company that develops novel targeted therapies. It discovers and develops cancer treatments through novel combination and monotherapy treatment regimens that enhance clinical benefits.
3. Boston Scientific Corporation (NYSE:BSX)
Boston Scientific Corporation (NYSE:BSX) is one of the best strong buy healthcare stocks to invest in. Boston Scientific Corporation (NYSE:BSX) announced on February 23 the election of Cathy Smith and Christophe Weber to its Board of Directors, effective February 18, 2026. The company also received several rating updates following its fiscal Q4 and full-year earnings release, with BTIG reaffirming a Buy rating on the stock with a price target of $110 on February 20. In addition, Canaccord cut the price target on Boston Scientific Corporation (NYSE:BSX) to $109 from $112 on February 17, maintaining a Buy rating on the shares and telling investors that it updated its model and estimates to reflect the business organizational changes. The firm also updated its estimates to take into account management commentary during and after the earnings call.
Boston Scientific Corporation (NYSE:BSX) announced its fiscal Q4 and full year 2025 earnings on February 4, reporting that it generated net sales of $5.286 billion during fiscal Q4, reflecting a 15.9% growth on a reported basis, 14.3% growth on an operational basis, and 12.7% growth on an organic basis, all compared to the prior year period. For the full year 2025, Boston Scientific Corporation (NYSE:BSX) generated net sales of $20.074 billion, up 19.9% on a reported basis, 19.2% on an operational basis, and 15.8% on an organic basis.
Boston Scientific Corporation (NYSE:BSX) manufactures, develops, and markets medical devices used in interventional medical procedures. Its operations are divided into Cardiovascular and MedSurg segments. The Cardiovascular segment covers Cardiology and Peripheral Interventions, while the MedSurg segment comprises Urology, Endoscopy, and Neuromodulation.
2. Danaher Corporation (NYSE:DHR)
Danaher Corporation (NYSE:DHR) is one of the best strong buy healthcare stocks to invest in. Danaher Corporation (NYSE:DHR) announced on February 24 that its Board of Directors approved a regular quarterly cash dividend of $0.40 per share of its common stock, payable on April 24, 2026, to holders of record on March 27, 2026. In another development, the company announced on February 17 a definitive agreement to acquire Masimo Corporation, which is a leading specialty diagnostics provider of pulse oximetry and other patient monitoring solutions, primarily in acute care settings.
The terms of the agreement entail the acquisition of all of the outstanding shares of Masimo common stock by Danaher Corporation (NYSE:DHR) for $180 per share in cash, or a total enterprise value of approximately $9.9 billion, including assumed indebtedness and net of acquired cash. Management stated that this represents a transaction multiple of around 18x estimated 2027 EBITDA, or 15x 2027 estimated EBITDA, including the full benefit of expected annual synergies.
Masimo would operate as a standalone operating company within Danaher’s Diagnostics segment upon the completion of the transaction, along with Radiometer, Leica Biosystems, Cepheid, and Beckman Coulter Diagnostics. Danaher Corporation (NYSE:DHR) stated that Masimo is anticipated to deliver high-single-digit core revenue growth over the long-term, expediting the company’s Diagnostics segment core revenue growth profile.
Danaher Corporation (NYSE:DHR) designs, manufactures, and markets professional, medical, industrial, and commercial products and services, making it a significant diagnostics stock. It operates through Diagnostics, Biotechnology, Life Sciences, and Environmental and Applied Solutions. Its Biotechnology segment offers a range of equipment and consumables for biological medicines. In contrast, the Life Diagnostics segment offers clinical instruments, devices, consumables, and other services for diagnosing and treating diseases.
1. Thermo Fisher Scientific Inc. (NYSE:TMO)
Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the best strong buy healthcare stocks to invest in. Thermo Fisher Scientific Inc. (NYSE:TMO) reported its fiscal Q4 and full-year 2025 results on January 29, announcing that fiscal Q4 revenue grew 7% to $12.21 billion. GAAP diluted earnings per share for the quarter grew 9% to $5.21, while adjusted EPS rose 8% to $6.57. In addition, full year revenue underwent a 4% growth to $44.56 billion, with GAAP diluted earnings per share rising 7% to $17.74, and adjusted EPS growing 5% to $22.87.
Following the earnings update, Thermo Fisher Scientific Inc. (NYSE:TMO) received several rating updates, including Citi lifting the price target on the stock to $685 from $660 on January 30 and maintaining a Buy rating on the shares. The same day, Baird also raised the price target on the stock to $653 from $645 and maintained an Outperform rating on the shares, telling investors that it updated its model on Thermo Fisher Scientific Inc. (NYSE:TMO) following its fiscal Q4 earnings release and adding that it remains a top idea.
Thermo Fisher Scientific Inc. (NYSE:TMO) provides analytical instruments, reagents, equipment, software, and other services for analysis, research, diagnostics, and discovery. It operates through the Analytical Instruments, Life Sciences Solutions, Laboratory Products and Services, and Specialty Diagnostics segments.
While we acknowledge the potential of TMO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TMO and that has 100x upside potential, check out our report about this cheapest AI stock.
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