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.
10. Argenx SE – ADR (NASDAQ:ARGX)
1-Year Gain: 27.35%
Upside Potential: 25.92%
Number of Hedge Fund Holders: 50
Argenx SE – ADR (NASDAQ:ARGX) is one of the best healthcare stocks to buy for 2026. On January 13, Argenx SE – ADR (NASDAQ: ARGX) saw its market sentiment boosted after the US Food and Drug Administration accepted priority review for a supplemental biologics license application for the immune disorder drug Vyvgart.
The company submitted the application to expand the use of candidate drugs for treating adults with acetylcholine receptor antibody-seronegative generalized myasthenia gravis (gMG). If successful, the license would broaden the patient population eligible for the medication. The FDA has already granted priority review status, which is expected to accelerate regulatory decision timelines for the expanded drug indication.
Earlier, on January 12, William Blair reiterated an Outperform rating on the stock, impressed by the company’s strong sales momentum in its Vyvgart franchise. Sales for the candidate drug continue to exceed expectations, with the momentum expected to continue throughout 2026 and across indications in MG (myasthenia gravis) and CIDP (chronic inflammatory demyelinating polyneuropathy)
The research firm is also confident in the company’s other clinical assets, including empasiprubart for MMN (multifocal motor neuropathy), which presents a blockbuster opportunity.
Argenx SE – ADR (NASDAQ:ARGX) is a Netherlands-based global biotechnology company focused on developing, manufacturing, and commercializing antibody-based therapies for severe autoimmune diseases and cancers.
9. AstraZeneca PLC (NASDAQ:AZN)
1-Year Gain: 29.97%
Upside Potential: 15.29%
Number of Hedge Fund Holders: 54
AstraZeneca PLC (NASDAQ:AZN)is one of the best healthcare stocks to buy for 2026. On January 29, AstraZeneca announced a $15 billion investment in China through 2030 to expand manufacturing and R&D, strengthening capabilities in cell therapy and radioconjugates while deepening China-UK healthcare collaborations.
The investment, unveiled during UK Prime Minister Keir Starmer’s visit, will enhance AstraZeneca’s pipeline across cancer, autoimmune, and hematological diseases, build on its acquisition of Gracell Biotechnologies, and grow its workforce in China beyond 20,000. With expanded facilities in Wuxi, Taizhou, Qingdao, and Beijing, plus new sites to come, AstraZeneca aims to deliver next-generation treatments globally while advancing partnerships with leading universities and biotechs in both countries.
Earlier on January 14, Guggenheim reiterated a Buy rating on AstraZeneca PLC in anticipation of impressive fourth-quarter and 2025 financial results. The research firm expects the company to deliver top- and bottom-line results in line with estimates, affirming a strong year of commercial execution. Expectations are high for high single-digit revenue growth, at about $58.5 billion. Similarly, the company is expected to deliver double-digit EPS growth, reaching $9.15 a share.
AstraZeneca is expected to guide for mid-single-digit revenue growth, topping consensus estimates, and project low double-digit earnings growth versus forecasts of 10–12%. Confidence in its 2030 outlook is rising as the company advances its pipeline to offset upcoming patent expirations for Imfinzi and Tagrisso, with investors watching closely for updates on oral GLP-1 candidate AZD5004, amylin AZD6234, and Wainua in ATTR-CM to strengthen its cardiovascular and metabolic portfolio.
AstraZeneca PLC (NASDAQ:AZN) is a global, science-led biopharmaceutical company focused on discovering, developing, manufacturing, and selling prescription medicines for serious diseases, primarily in oncology (cancer), cardiovascular, renal & metabolism, and respiratory & immunology.
8. IDEXX Laboratories, Inc. (NASDAQ:IDXX)
1-Year Gain: 59.61%
Upside Potential: 17.15%
Number of Hedge Fund Holders: 55
IDEXX Laboratories Inc. (NASDAQ:IDXX) is one of the best healthcare stocks to buy for 2026. On January 15, IDEXX Laboratories (NASDAQ: IDXX) launched the ImageVue DR50 Plus, its most advanced veterinary imaging system, offering high-definition, AI-powered diagnostics with up to 25% less radiation than its previous model and 60% less than other solutions. Designed to improve safety and efficiency, it reduces retakes, supports new panel sizes, and integrates seamlessly with IDEXX’s Web PACS, telemedicine, and ezyVet software, enabling faster workflows and sharper images that enhance patient care, protect staff, and build trust with pet owners.
On January 13, IDEXX Laboratories Inc. (NASDAQ:IDXX) announced that Michael Erickson will become President and Chief Executive Officer, effective May 12, 2026. Erickson is to take over from Jonathan Mazelsky, who will transition to executive Chair of the Board, after which he will retire following the company’s annual shareholder meeting in 2027.
Analysts at Stifel have already echoed the management changes, insisting the CEO transition will be seamless. The analysts expect Erickson to benefit from IDEXX’s portfolio of recently launched products, including inVue, Cancer Dx, and the pending MultiCue Dx POC analyzer. Additionally, Stifel remains confident that IDEXX will deliver a fourth-quarter 2025 Companion Animal Group Diagnostics recurring organic revenue growth estimate of 8.9%.
IDEXX Laboratories, Inc. (NASDAQ:IDXX) is a global leader in animal health diagnostics and software, providing veterinarians with tools for pet care and offering diagnostic testing for livestock, poultry, and water quality, ensuring safety for humans and animals worldwide.
7. Cencora, Inc. (NYSE:COR)
1-Year Gain: 36.23%
Upside Potential: 15.51%
Number of Hedge Fund Holders: 59
Cencora, Inc. (NYSE:COR) is one of the best healthcare stocks to buy for 2026. On January 29, Morgan Stanley upgraded Cencora Inc. (NYSE:COR) from Equalweight to Overweight and raised its price target to $400, citing the company’s strong position in specialty pharmaceuticals and its pending majority acquisition of OneOncology.
The firm also highlighted Cencora’s plans to divest non-core assets as a positive step, boosting its FY2026 U.S. Healthcare Solutions AOI growth forecast to 10.8% and International AOI growth to 7.0%, resulting in an EPS estimate of $17.63, slightly above consensus.
On January 16, Cencora Inc. entered into credit agreements totaling $4.5 billion. The company is to leverage the credit facility to finance the acquisition of OneOncology.
The credit agreements include a $1.5 billion term credit agreement with JPMorgan Chase Bank, consisting of two tranches of $500 million and $1.5 billion, maturing in 2 and 3 years, respectively. It has also secured a separate $3 billion term loan facility with Citibank as administrative agent.
Cencora is to use proceeds from the credit agreements to pay acquisition consideration for OneOncology, its debt, and cover other related fees and expenses. Funding under the agreements is contingent on the company completing the acquisition.
Following the credit agreements, Jefferies upgraded Cencora Inc. (NYSE:COR) to a Buy from a Hold and raised the price target to $440 from $330. The research firm has also touted the company’s strong execution record and its increased long-term plan as compelling investment factors.
Cencora, Inc. (NYSE:COR) is a pharmaceutical solutions company that connects drug manufacturers with healthcare providers, ensuring safe and efficient delivery of medicines and health products for humans and animals.
6. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
1-Year Gain: 85.37%
Upside Potential: 15.66%
Number of Hedge Fund Holders: 60
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is one of the best healthcare stocks to buy for 2026. On January 28, Truist Securities raised its price target on Teva Pharma (NYSE:TEVA) to $38 from $36 while keeping a Buy rating, following Q4 2025 results that included a $500 million milestone payment. Although normalized revenue missed estimates by about 1%, Truist sees Teva’s growth story as intact, pointing to pipeline catalysts in 2026 such as a potential FDA decision on Olanzapine LAI, which could unlock a $3B sales opportunity.
The firm also expects biosimilars to support the generics business despite headwinds from gRevlimid sales and tougher Austedo comparisons, noting Teva’s PEG ratio of 0.3 suggests attractive value relative to growth.
The same day Teva Pharmaceutical Industries reported strong Q4 2025 results, beating expectations with EPS of $0.96 versus $0.65 forecast and revenue of $4.71 billion against $4.33 billion expected, aided by a $500 million milestone payment from Sanofi. Despite this, shares slipped as Teva projected lower 2026 revenue of $16.4–$16.8 billion and adjusted EPS of $2.57–$2.77, reflecting a more than $1 billion hit from lost sales of its generic Revlimid due to rising competition.
The company’s innovative portfolio continues to drive growth, with Austedo generating $725 million in U.S. sales in Q4, up 40% year-over-year, alongside contributions from Ajovy and Uzedy. Together, these three drugs delivered $3.1 billion in 2025 revenue and are expected to reach up to $3.6 billion in 2026, underscoring Teva’s transition from a generics-focused firm to a biopharma player. While near-term headwinds weigh on guidance, core earnings are projected to rise, supported by expanding branded medicines and pipeline momentum.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is a global leader in generic and specialty medicines, specializing in developing, manufacturing, and marketing drugs across various therapeutic areas, including central nervous system (CNS), respiratory, and oncology.
5. Edwards Lifesciences Corporation (NYSE:EW)
1-Year Gain: 23.22%
Upside Potential: 17.02%
Number of Hedge Fund Holders: 64
Edwards Lifesciences Corporation (NYSE:EW) is one of the best healthcare stocks to buy for 2026. On January 20, Stifel raised its price target of Edwards Lifesciences Corporation (NYSE:EW) to $110 from $105 while reiterating a Buy rating.
The price target hike is in response to a significant increase in the number of Transcatheter Aortic Valve Replacement (TAVR) procedures. After surveying physicians who perform the procedure, the results indicate significant growth in TAVR. Likewise, the results point to improvement in TAVR market fundamentals. The results align with the company’s revenue growing by 10% in the third quarter, driven by growth in the TAVR division, which accounts for 75% of total revenue. It is the strongest growth for the division in recent years.
Earlier, on January 9, TD Cowen upgraded Edwards Lifesciences to a Buy from Hold and raised the price target to $97 from $90. The price target hike is in response to the company entering what the research firm touts as a renewed growth cycle, driven by expanded indications for transcatheter aortic valve replacement (TAVR).
Edwards Lifesciences Corporation (NYSE:EW) is a medical technology company that develops and provides patient-focused innovations for heart conditions, specializing in structural heart disease (artificial heart valves, repair devices for mitral/tricuspid valves) and critical care monitoring.
4. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
1-Year Gain: 37.11%
Upside Potential: 38.60%
Number of Hedge Fund Holders: 72
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is one of the best healthcare stocks to buy for 2026. On January 20, RBC Capital reiterated an Outperform rating on Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) but cut the price target to $465 from $500.
The new price outlook comes on Alnylam Pharmaceuticals announcing strategic priorities for the year, including achieving revenue of $5.1 billion, exceeding the consensus estimate of $4.7 billion. While there have been concerns about November performance, it was mostly affected by one-time factors, including fewer selling days. In the long term, the company is targeting 25% compound annual growth rate through 2030, which aligns with revenue of $11.2 billion.
On the other hand, Cantor Fitzgerald has reiterated its Neutral rating on Alnylam Pharmaceuticals. The cautious outlook comes on Amvuttra cardiomyopathy sales slowing down in November but rebounding in December. The company expects Amvuttra’s net price to decline by mid-single digits in 2026. The sales patterns and pricing strategy provide context for the research firm’s neutral stance.
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) develops innovative medicines using RNA interference (RNAi) to “silence” disease-causing genes, acting as a pioneer in this revolutionary field to create treatments for rare and prevalent genetic, metabolic, cardiovascular, and neurological diseases.
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.
2. AbbVie Inc. (NYSE:ABBV)
1-Year Gain: 25.49%
Upside Potential: 16.37%
Number of Hedge Fund Holders: 93
AbbVie Inc. (NYSE:ABBV) is one of the best healthcare stocks to buy for 2026. On January 28, Goldman Sachs reaffirmed its Neutral rating and $223 price target on AbbVie Inc. (NYSE:ABBV) ahead of its Q4 2025 earnings and 2026 guidance release. The firm expects healthy growth, projecting $67.1 billion in revenue, $21.3 billion from Skyrizi, $10.4 billion from Rinvoq, and EPS of $14.22, in line with consensus, while noting investor concerns about competition and smaller earnings beats.
Goldman anticipates a slight revenue beat in Q4, with Skyrizi performing above expectations and Rinvoq slightly below, alongside continued pressure on the Aesthetics business and steady results in Neurology and Oncology. AbbVie’s high P/E ratio of 168.95 reflects strong growth expectations, supported by its 3.09% dividend yield.
Earlier on January 16, AbbVie Inc. delivered mixed results in the phase 3 Lymphoma trial. The EPCORE DLBCL-1 trial for epcoritamab showed improved progression-free survival in patients.
The trial showed higher complete response rates and longer response durations. However, the candidate drug did not demonstrate a significant improvement in overall survival and did not meet the overall survival endpoint. Nevertheless, the adverse events were consistent with the candidate drug’s known safety profile.
In a bid to address the issues raised in the trials, AbbVie and its partner Genmab are assessing potential factors that may have negatively influenced the results. Some of the factors include the COVID-19 pandemic and the increased availability of novel anti-lymphoma therapies.
AbbVie Inc. (NYSE:ABBV) is a global biopharmaceutical company focused on discovering, developing, and delivering innovative medicines and solutions for complex health issues, specializing in immunology, oncology, neuroscience, and eye care, and aiming to improve patient lives and societal health through targeted research, development, and strategic partnerships.
1. Eli Lilly and Company (NYSE:LLY)
1-Year Gain: 24.41%
Upside Potential: 16.33%
Number of Hedge Fund Holders: 114
Eli Lilly and Company (NYSE:LLY) is one of the best healthcare stocks to buy for 2026. On January 29, Reuters reported that U.S. President Donald Trump said Eli Lilly plans to build six new manufacturing plants in the United States. Lilly previously announced it would invest at least $27 billion to expand production and strengthen medical supply chains, with four plants planned and three already confirmed in Alabama, Virginia, and Texas. The expansion aims to boost U.S. manufacturing capacity and support the company’s long-term growth in pharmaceuticals.
On January 20, the US Food and Drug Administration granted Eli Lilly and Company Breakthrough Therapy Designation for its ovarian cancer drug sofetabart mipitecan. The designation paves the way for expedited development and review of the drug as it targets a serious condition.
The company secured the breakthrough designation following a positive Phase 1a/b STUDY. The results showed responses at all dose levels and across all folate receptor alpha expression levels, including patients on mirvetuximab soravtansine. The trial results also showed low rates of intestinal lung disease, peripheral neuropathy, and alopecia. ‘
Sofetabart mipitecan is currently in a Phase 3 Framework-01 study investigating its effectiveness as a monotherapy in patients with platinum-resistant ovarian cancer. Eli Lilly is investigating the drug in partnership with the European Network for Gynecological Oncological Trial Groups .
Meanwhile, Bernstein has reiterated an Outperform rating on Eli Lilly, set a $1300 price target, and touted it as a top pick in the sector. The positive stance comes as the research firm expects the company to capitalize on the oral medication opportunity and international expansion. The company should also benefit from its push to expand its diabetes treatment opportunities.
Eli Lilly and Company (NYSE:LLY) is a global healthcare company that discovers, develops, manufactures, and markets pharmaceutical products, focusing on diabetes (including insulin), oncology, immunology, neurodegeneration, and pain.
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