12 Best Healthcare Stocks to Buy and Hold for 5 Years

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1. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 119

Eli Lilly and Company (NYSE:LLY) tops our list for being one of the best healthcare stocks. It is a global biopharmaceutical leader and continues to expand its presence across diabetes, obesity, oncology, immunology, and neurology. The company’s portfolio includes blockbuster drugs such as Mounjaro and Zepbound for diabetes and obesity, as well as donanemab for Alzheimer’s disease, supported by strong R&D capabilities and consistent commercial execution.

In September 2025, LLY announced plans for a $6.5 billion manufacturing facility in Houston, Texas, one of the city’s largest private investments in recent years. The site will expand production for small-molecule medicines, including orforglipron, its experimental oral GLP-1 receptor agonist for obesity. Expected to be operational within five years, the facility will create several hundred jobs while reinforcing LLY’s commitment to next-generation obesity treatments.

Eli Lilly and Company (NYSE:LLY) is also pursuing international growth, with plans to launch orforglipron in India pending regulatory approval. This move highlights the firm’s strategy to capture demand for oral weight-loss drugs in emerging markets. At the same time, the corporation streamlined its pipeline by halting development of a muscle-preserving drug paired with Zepbound, choosing to focus resources on its most promising obesity assets.

Meanwhile, LLY strengthened its neurology portfolio as European regulators granted marketing authorization for donanemab, advancing the business’s position in Alzheimer’s disease therapies. Financially, the firm reported strong international growth for Mounjaro, though U.S. sales were slightly impacted by isolated formulary challenges. Nevertheless, global demand for tirzepatide-based treatments remains robust, supporting an optimistic outlook for continued expansion.

While we acknowledge the potential of LLY 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 LLY and that has 100x upside potential, check out our report about this cheapest AI stock.

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