In this article, we will be taking a look at the 12 Best Healthcare stocks to Buy and Hold for 5 Years.
The CEO and co-founder of Claimable, Dr. Warris Bokhari, spoke on CNBC’s “Squawk Box” on July 21 about using AI to challenge health insurance denials and other topics.
Most Americans have endured the annoyance of having their health insurance denied, frequently with no resolution even after contacting carriers via phone and email. This can be changed by Dr. Bokhari’s platform, which employs artificial intelligence (AI) to appeal care denials for about 70 autoimmune illnesses, including Crohn’s disease.
Following patient completion of a form, AI manages the following steps, looking up pertinent state and federal regulations as well as healthcare plans.
According to Dr. Bokhari, the platform was created after ten years of observing one of America’s particular issues: 850 million denials occur annually, and only around 1% of them are ever appealed. According to these figures, between 70 and 90 million Americans face insurance-related problems each year, including denials.
The program, which was only launched in the United States on October 2, 2024, assists patients in appealing care denials for 70 autoimmune disorders. AI is used to create appeal letters according to healthcare plans.
With this in mind, let’s dive in and take a look at the best healthcare stocks to buy and hold for 5 years.
Our Methodology
For our methodology, using stock analysis’s stock screener we began by filtering healthcare stocks stocks with EPS growth of more than 10% over the past five years and an expected EPS growth rate of at least 20% over the next five years, forward PE more than 20 and then based on the redults we picked the top 12 stocks and the final ranking was based on total number of hedge fund holders as of Q2 2025 as tracked by the Insider Monkey databse.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Here is our list of the 12 best healthcare stocks to buy and hold for 5 years.
12. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 27
Intuitive Surgical, Inc. (NASDAQ:ISRG) has pioneered robotic-assisted minimally invasive surgery (MIS), with its da Vinci systems now used in millions of procedures and training tens of thousands of surgeons globally. ISRG is among the best healthcare stocks.
In September 2025, ISRG introduced advanced software features for its da Vinci 5 system, the most powerful in its portfolio. Key updates include Force Gauge for real-time instrument pressure monitoring, In-Console Video Replay for instant procedural review, and Network CCM for remote software updates. These enhancements leverage the platform’s computational power, 10,000 times greater than the prior Xi system, enabling real-time surgical insights and advanced safety capabilities.
A major highlight is the successful demonstration of telesurgery, where surgeons collaborated across 4,000 miles from Georgia to France using dual da Vinci 5 consoles. While still in development and awaiting FDA clearance, this breakthrough points to a future where advanced surgeries can reach patients globally. Additionally, new regulatory approvals in Europe, Japan, and Korea expand the business’s international footprint.
Looking ahead, Intuitive Surgical, Inc. (NASDAQ:ISRG) is focusing on AI and data-driven surgery. The da Vinci 5’s computing power supports predictive analytics, personalized training, and real-time guidance, paving the way for smarter, more precise, and safer procedures over the next five years. With these innovations, the firm reinforces its commitment to advancing minimally invasive care while expanding global access to cutting-edge surgical technology.
11. Doximity, Inc. (NYSE:DOCS)
Number of Hedge Fund Holders: 41
Doximity, Inc. (NYSE:DOCS) remains a leading healthcare technology stock, leveraging AI-driven tools and strategic acquisitions to strengthen its position in the medical sector. The company operates a cloud-based professional network for U.S. clinicians, offering secure telemedicine, collaboration, and workflow solutions.
Recently, DOCS completed the acquisition of Pathway Medical, an AI-powered clinical reference platform. The integration enhances Doximity’s flagship DoxGPT tool, providing instant, verified access to medical data, peer-reviewed research, and context-aware AI responses within daily clinical workflows. Pathway’s AI model scored 96% on the U.S. Medical Licensing Exam benchmark, underscoring the corporation’s commitment to clinical quality and innovation.
DOCS also expanded its offerings with Doximity Scribe, a free ambient AI scribe that automates clinical documentation and reduces after-hours administrative work.
Doximity, Inc. (NYSE:DOCS)’s last quarter, ending June 30, 2025, saw revenue climb 15% year-over-year, reaching $145.9 million, which exceeded analyst forecasts. The company delivered non-GAAP earnings per share (EPS) of $0.36. User engagement and product adoption surged, especially in new AI scribe and workflow tools.
10. Penumbra, Inc. (NYSE:PEN)
Number of Hedge Fund Holders: 47
Penumbra, Inc. (NYSE:PEN) based in California, is a global leader in thrombectomy and vascular intervention technologies, offering products such as the Indigo and Lightning series, as well as neuro and vascular embolization solutions. Operating in over 100 countries, the company serves acute stroke and broader vascular markets through both direct and distributor-driven channels.
In September 2025, Shruthi Narayan was promoted to President, bringing engineering and commercialization expertise to strengthen PEN’s focus on global innovation and market growth. The business also introduced the Ruby XL System, the largest and longest detachable embolization coil, demonstrating versatility in complex vascular procedures and supporting wider clinical adoption. These advances contribute to PEN’s reputation among the best healthcare stocks.
Expanding its thrombectomy capabilities, Penumbra, Inc. (NYSE:PEN) released the Lightning Bolt 6X device in a 150 cm length, enabling Computer Assisted Vacuum Thrombectomy (CAVT) in smaller, distal vessels, a critical advance for peripheral arterial disease interventions. Additionally, the firm completed enrollment for the STORM-PE Randomized Controlled Trial, evaluating CAVT’s effectiveness in pulmonary embolism, with results poised to influence future treatment guidelines and expand market penetration.
Looking ahead, Penumbra, Inc. (NYSE:PEN) remains committed to advancing minimally invasive clot removal technologies that improve patient outcomes while enhancing healthcare efficiency. The firm’s recent clinical data highlights the speed, safety, and efficacy of its CAVT devices, reinforcing growth potential in both U.S. and international markets.
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