In this article, we will discuss the 12 Best Healthcare Stocks to Buy Now.
Healthcare companies in the US are facing policy headwinds under President Donald Trump’s Administration. The president’s calling for more scrutiny in Medicaid Payments, and a significant slashing of drug prices has rattled the sector.
Consequently, healthcare stocks have only gained 1.5% since the market bottomed in April and have remained down by about 2.6% year to date. Jared Holz, Mizuho health care equity strategist, has warned that the underperformance could continue as fundamentals in the sector deteriorate.
“We are just in for you know a number of other headlines that are facing the sector that are most likely going to be fundamentally negative than not. I think the concept we are all trying to understand at this point is whether the stocks have priced in the risks or if they have not and what most nations mean what other drug pricing initiatives mean, what the tariffs mean and there are so many variables, it’s really tough to contend with all of it,” Holz said in an interview with CNBC.
Amid the underperformance triggered by the unending uncertainties, Holz insists there are still bright spots in the sector that are likely to generate long-term value. While there will always be losers given how the healthcare sector operates, Holz advises investors to focus on the best opportunities.
The Centers for Medicare and Medicaid Services estimates that US healthcare spending will grow by 5.6% annually through 2032, underscoring long-term investment opportunities in the sector.
With that in mind, let’s take a look at the 12 Best Healthcare Stocks to Buy Now.
Our Methodology
We sifted through stock screeners to find the 12 Best Healthcare Stocks to Buy Now. We analyzed the stock’s year-to-date performance to highlight why they are considered strong buy opportunities. These stocks are also popular among elite hedge funds as of Q1 2025. Finally, we ranked the stocks in ascending order based on their year-to-date performance
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).
12. Baxter International Inc. (NYSE:BAX)
Year to Date Performance as of June 16: 4.65%
Hedge Fund Holding: 36
Baxter International Inc. (NYSE:BAX) is one of the 12 best healthcare stocks to buy now. On June 11, UBS reiterated a ‘Neutral’ rating on the stock and a $35 price target. The Neutral stance follows a meeting with the company’s Head of Investor Relations.
According to UBS, the company has demonstrated momentum across its portfolio with products like Novum IQ and Progressa+. Consequently, the products position the company to maintain the mid to single-digit sales growth achieved in recent quarters. Over the last 12 months, the company’s revenue has grown by 15.4%, reaching $10.8 billion.
Nevertheless, UBS remains cautious amid growing uncertainty about Baxter International’s new CEO. Additionally, there is uncertainty over the direction in which the company’s post-Vantive sales strategy will take in both organic and inorganic investments. UBS has warned that the strategic uncertainties could affect the company’s market growth rates, making it difficult to predict sales and earnings upside.
Baxter International Inc. (NYSE:BAX) is a global medical technology company that develops, manufactures, and markets a wide range of healthcare products and technologies. It focuses on products related to hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions.
11. AbbVie Inc. (NYSE:ABBV)
Year to Date Performance as of June 16: 6.49%
Hedge Fund Holding as of Q1 2025: 86
AbbVie Inc. (NYSE:ABBV) is one of the 12 best healthcare stocks to buy now. On June 12, the US Food and Drug Administration (FDA) approved the company’s Mavyret treatment label expansion. The approval makes the treatment the first antiviral therapy for people with Acute Hepatitis C Virus (HCV).
The FDA agreed to a label expansion following positive data from a late-stage study evaluating the drug’s effectiveness in adults with acute HCV infection. The adverse events identified in the treatment were mild or moderately severe, including fatigue, asthenia, headache, and diarrhea.
The label expansion comes when the US is expected to incur around $120 billion in medical costs over the next 10 years. Most of the costs would be linked to chronic liver disease and other related conditions associated with HCV. Mavyret generated $306 million in sales in the first quarter of the year, including $142 million in the US.
AbbVie Inc. (NYSE:ABBV) is a global biopharmaceutical company focused on discovering, developing, and delivering innovative medicines and solutions to address complex health issues. Its research and development efforts target areas like immunology, oncology, virology, and neuroscience.
10. Laboratory Corporation of America Holdings (NYSE:LH)
Year to Date Performance as of June 16: 14.43%
Hedge Fund Holding: 48
Laboratory Corporation of America Holdings (NYSE:LH) is one of the best healthcare stocks to buy now. On June 11, Morgan Stanley reiterated the stock’s ‘Overweight’ rating and raised the 12-month price target to $283 from $270.
The adjustment underscores the investment firm’s confidence in the company’s growth prospects as it also faces durable demand for its products. LabCorp has already unveiled new product launches, including LabCorp Plasma Complete. It’s also working on genetic risk label tests as part of its strategic focus on high-growth areas.
Laboratory Corporation of America Holdings (NYSE:LH) is a global life sciences and healthcare company. It provides laboratory services for diagnosis, healthcare decisions, and drug development. Its services include clinical lab tests, drug development support, and testing for various conditions, including oncology, genetics, and infectious diseases.
9. The Cigna Group (NYSE:CI)
Year to Date Performance as of June 16: 15.63%
Hedge Fund Holding: 74
The Cigna Group (NYSE:CI) is one of the 12 best healthcare stocks to buy now. On June 12, the company started rolling out new artificial intelligence-powered tools to enhance how people navigate their benefits and medical costs. The launch is part of the company’s push to streamline and simplify member’s healthcare journey.
AI-Powered Virtual Assistant is one of the tools designed to provide clear conversational and personalized answers to common questions. Cigna will also offer Personalized Provider Matching, a proprietary matching tool designed to give customers a tailored list of in-network providers and care delivery methods. The tool is to be integrated with the AI virtual assistant to help customers find relevant care. The Real-Time Cost Tracking tool provides a breakdown of deductibles, out-of-pocket expenses, and integrated bill payments.
Customers will also compare prices, search for providers, and estimate potential healthcare costs when selecting a benefits plan with Plan Selection Support. The unveiling of the new tools is part of Cigna Group’s push to transform and improve healthcare delivery. It’s also focused on creating a more personalized healthcare experience that empowers customers to improve overall health and vitality.
The Cigna Group (NYSE:CI), headquartered in Connecticut, is a global health organization offering insurance and a wide range of health-related services. Through its two core segments—Evernorth Health Services and Cigna Healthcare—it delivers both coordinated care solutions and specialized services, including pharmaceutical support. The company is dedicated to advancing a healthier future worldwide.
