In this article, we will discuss the 12 Best Healthcare Stocks to Buy for 2026.
Artificial Intelligence has been the catalyst behind the blockbuster rally in equity markets over the past two years. With stocks at all-time highs, valuation concerns are prompting investors to reallocate funds into sectors with more attractive, discounted valuations, seeking better risk-reward opportunities.
Healthcare is one sector that is drawing attention as money comes out of the AI trade. Similarly, the environment for healthcare deals has become more inviting as President Donald Trump increasingly pushes for deregulation. That was the catalyst behind healthcare stocks finishing the year on a high note and outpacing the MSCI World Index by 7.5% in the fourth quarter of 2025.
Similarly, a new trend entailing the intersection of healthcare and artificial intelligence is already taking shape. The trend has gathered steam amid growing demand for tools to analyze X-rays and CT scans while also helping physicians identify disease in earlier stages. At the JPMorgan Healthcare Conference, the role AI can play in drug discovery took center stage with companies pledging $1 billion in talent, infrastructure, and compute
“Health care is going to resume its rightful place in big-time managers’ portfolios, and that place will be funded by donations from the brutal war over who can claim to have spent the most to lose the least money on artificial intelligence,” said Jim Cramer.
The healthcare sector offers strong, long-term earnings growth potential of 11.5% annualized, well above most equity sectors. Additionally, the sector offers meaningful growth and upside potential as the companies sell products that can improve patients’ quality of life and longevity.
The investment landscape promises to reward investors willing to take some risk. A lower interest rate environment, coupled with improved funding conditions, promises to fuel investments in healthcare companies, particularly those with clear paths to commercial success.
Source: Pixabay
Our Methodology
We used Finviz and leading healthcare ETFs to compile a list of the best healthcare stocks to buy for 2026, narrowing it down to companies that gained at least 20% over the past year and still have positive upside potential. We sourced the Q3 2025 hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order based on the number of hedge fund holders on each stock.
Note: All data was sourced on January 29.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
Best Healthcare Stocks to Buy for 2026
12. Takeda Pharmaceutical Company Limited (NYSE:TAK)
1-Year Gain: 25.33%
Upside Potential: 27.84%
Number of Hedge Fund Holders: 19
Takeda Pharmaceutical Company Limited (NYSE:TAK) is one of the best healthcare stocks to buy for 2026. Takeda Pharmaceutical Company Limited (NYSE:TAK) reported Q3 FY2025 results on January 29, 2026, with revenue down 3.3% year-over-year at constant exchange rates due to VYVANSE’s loss of exclusivity. Growth and launch products rose 6.7% at CER and now account for 52% of revenue, helping offset declines. Key drivers included Entyvio (+7.4%), Livtencity (+43.6%), and Qdenga (+22.1%), underscoring how new products are cushioning the impact of VYVANSE’s 45.7% drop.
Financially, Takeda posted Q3 YTD revenue of ¥3,411.2 billion, core operating profit down 3.4% to ¥971.6 billion, and reported operating profit up 1.2% to ¥422.4 billion. Cash flow remained strong, with operating cash flow up 15.8% to ¥966.9 billion and adjusted free cash flow up 10.1% to ¥625.9 billion. Looking ahead, the company is preparing to launch three transformative medicines—Oveporexton, Rusfertide, and Zasocitinib—between late 2026 and early 2027, while accelerating late-stage programs in gastrointestinal, neuroscience, and oncology to drive long-term growth.
On January 22, Takeda announced the U.S. launch of GAMMAGARD LIQUID ERC, a ready-to-use immunoglobulin therapy for primary immunodeficiency (PI) patients aged two and older. The 10% solution, with IgA content ≤2 μg/mL, can be administered intravenously or subcutaneously without reconstitution, easing treatment for patients and providers. Available in 5g/50mL and 10g/100mL vials, it features Enhanced Removal Capability to lower IgA levels, offers long shelf life at room temperature or refrigeration, and adds to Takeda’s broad IG portfolio. While not specifically indicated for IgA sensitivity, it may suit some PI patients, though risks such as thrombosis, renal dysfunction, and hypersensitivity remain.
Takeda Pharmaceutical Company Limited (NYSE:TAK) is a top-20 global, R&D-driven biopharmaceutical company headquartered in Japan, focusing on discovering, developing, and manufacturing innovative medicines. Key areas include oncology, rare diseases, neuroscience, gastroenterology (GI), plasma-derived therapies, and vaccines.
11. BeOne Medicines AG (NASDAQ:ONC)
1-Year Gain: 54.26%
Upside Potential: 20.05%
Number of Hedge Fund Holders: 21
BeOne Medicines AG (NASDAQ:ONC) is one of the best healthcare stocks to buy for 2026. On January 13, at the 44th Annual J.P. Morgan Healthcare Conference, BeOne Medicines AG (NASDAQ:ONC) reiterated significant progress in its pipeline development.
BRUKINSA, a tyrosine kinase inhibitor, has achieved 74% six-year progression-free survival, compared with 32% with bendamustine plus rituximab, in treatment-naïve chronic lymphocytic leukemia. Sonrotoclax, its BCL2 inhibitor, has received regulatory approval, with an overall response rate of 86% in heavily pretreated CLL patients. The company is also advancing 15 new molecular entities into clinical trials and plans to deliver 8 to 10 additional candidates.
Earlier on January 7, Citizens reiterated a Market Perform rating and a $396 price target on the stock, impressed by robust efficacy data from the company’s phase 3 trial in gastric cancer patients. The expected approval of sonrotoclax, a next-generation BCL2 inhibitor, is also expected to trigger additional approval globally. Likewise, the research firm expects the company’s Brukinsa drug to generate $3.8 billion in 2025.
BeOne Medicines AG (NASDAQ:ONC) is a biotechnology company focused on discovering, developing, and commercializing innovative, affordable oncology treatments. It is known for products such as Brukinsa and Tevimbra and utilizes a worldwide network for R&D and manufacturing.
