12 Best Healthcare Stocks to Buy for 2026

3. CVS Health Corporation (NYSE:CVS)

1-Year Gain: 31.01%

Upside Potential: 29.76%

Number of Hedge Fund Holders: 78

CVS Health Corporation (NYSE:CVS) is one of the best healthcare stocks to buy for 2026. On January 27, BofA Securities cut its price target on CVS Health (NYSE: CVS) to $95 from $100 while keeping a Buy rating, citing CMS’s proposed CY 2027 Advance Notice policies that set a lower-than-expected net rate of 2.54%. The changes include a new CMS-HCC risk model and the removal of unlinked chart review records from risk scores, which could reduce payments to Medicare Advantage plans starting in 2027.

Earlier on January 7, Cantor Fitzgerald reiterated CVS Health Corporation as one of its preferred stocks for Medicare Advantage (MA) exposure in 2026. The research firm expects the company to benefit from a favorable regulatory environment.

CMS Enrollment data is expected mid-next month, and preliminary MA rate notices are among the upcoming catalysts in the Medicare Advantage sector, where the company is well-positioned to benefit. President Donald Trump’s Great Healthcare Plan aims to provide direct funding to consumers for purchasing health insurance, something that CVS will also benefit from. The new plan is to lower insurance costs and improve consumer access to healthcare.

Earlier, on January 6, the CVC board approved a quarterly dividend of $0.665 per share as the company continues to execute its integrated healthcare model. The dividend is to be paid on February 2 to shareholders of record as of January 22, 2026.

CVS Health Corporation (NYSE:CVS) is a leading U.S. health solutions company that integrates retail pharmacies and a major health insurer (Aetna) to offer connected health services, prescriptions, insurance, and wellness programs.