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.
8. Gilead Sciences Inc. (NASDAQ:GILD)
Year to Date Performance as of June 16: 19.70%
Hedge Fund Holding: 79
Gilead Sciences Inc. (NASDAQ:GILD) is one of the 12 best healthcare stocks to buy now. Nevertheless, the company suffered a significant setback after the US Food and Drug Administration put on hold studies of several of its HIV drugs on June 11.
The FDA placed a hold on the HIV treatment trial of GS-1720 and GS-4182 on the identification of the safety signal of a decrease in CD4+ T-cells in trials. Gilead insists it is collaborating with authorities and working to resolve underlying issues. However, the FDA hold did not in any way affect multiple other HIV treatment combinations that the company is working on.
The combination is one of the several drugs that Gilead is working on to replace any revenue it could lose in case its bestselling HIV drug, Biktarvy, loses patent protection.
Gilead Sciences Inc. (NASDAQ:GILD) is a research-based biopharmaceutical company that discovers, develops, and commercializes innovative medicines in areas of unmet medical need. Each discovery and investigational drug candidate seeks to improve the care of patients living with life-threatening diseases worldwide.
7. GSK plc (NYSE:GSK)
Year to Date Performance as of June 16: 20.35%
Hedge Fund Holding: 32
GSK plc (NYSE:GSK) is one of the 12 best healthcare stocks to buy now. On June 12, the company announced licensing its Shigella vaccine candidate to Bharat Biotech. The licensing is part of the company’s effort to get the vaccine to patients where the pathogen poses a significant threat of causing death from diarrhea.
Shigella is responsible for the deaths of tens of thousands of children under five years in low and middle-income countries. GSK has developed altSonflex 1-2-3 to address the unmet need. Phase 1 and interim Phase 2 data of the candidate vaccine have already met the company’s immunogenicity success criteria.
Bharat Biotech will take charge of the continued development of altSonflex1-2-3, which encompasses Phase 3 clinical trials, regulatory progress, and large-scale production. GSK will support the initiative by helping design clinical trials, obtaining external financing, and aiding in access, delivery, and commercialization strategies.
GSK plc (NYSE:GSK) is a global pharmaceutical company focused on the discovery, development, and manufacture of medicines and vaccines. Its products are distributed worldwide through a broad network of wholesalers, pharmacies, hospitals, and healthcare providers.
6. Ascendis Pharma A/S (NASDAQ:ASND)
Year to Date Performance as of June 16: 23.77%
Hedge Fund Holding: 52
Ascendis Pharma A/S (NASDAQ:ASND) is among the 12 best healthcare stocks to buy now. On June 10, Canaccord Genuity reiterated a Hold rating on the stock and an $84 price target. The stance follows the release of new clinical trial data.
The pharmaceutical company delivered solid 26-week efficacy results from its TransCon HGH+TransCon CNP COACH trial. Nevertheless, the research firm raised concerns over potential long-term side effects of the human Growth Hormone under investigation. The remarks reflect a cautious optimism while considering the broader competitive landscape and long-term implications.
Consequently, while the candidate treatment offers an additional growth acceleration option, it might not be a permanent replacement for CNP immunotherapy in achondroplasia patients. On its part, Ascendis Pharma insists that the combination treatment presents an alternative therapeutic choice that patients and caregivers can rely on. The US Food and Drug Administration has accepted the company’s New Drug Application for TransCon. The approval follows the treatment’s significant benefits in annualized growth velocity and health improvements in Children.
Ascendis Pharma A/S (NASDAQ:ASND) is a biopharma company focused on developing innovative treatments for unmet medical needs, especially in the fields of endocrinology and oncology. The company utilizes its proprietary TransCon technology platform to design therapies that aim to deliver improved outcomes and set new standards in care.
5. IDEXX Laboratories, Inc. (NASDAQ:IDXX)
Year to Date Performance as of June 16: 27.85%
Hedge Fund Holding: 51
IDEXX Laboratories Inc. (NASDAQ:IDXX) is among the 12 best healthcare stocks. On June 11, Leerink Partners analyst Daniel Clark reiterated an Outperform rating on the stock. However, the analyst increased his stock price target to $580 from $515.
According to the analyst IDEXX Laboratories has evolved to become the largest player in the veterinarian space. It enjoys a dominant market share and robust growth profile. He expects the company’s offerings to play an integral part in the vet office in terms of workflow and profitability.
While some of IDEXX Laboratories’ revenue growth depends on visit volumes beyond its control, the analyst remains confident in the long-term outlook thanks to consistently high levels of pet ownership. Owners increasing spending on pet wellness and overall health are a welcome for the company.
IDEXX Laboratories Inc. (NASDAQ:IDXX) is a healthcare company that develops, manufactures, and distributes products and services for veterinary diagnostics, livestock and poultry diagnostics, water testing, dairy testing, and human medical diagnostics.
4. McKesson Corporation (NYSE:MCK)
Year to Date Performance as of June 16: 28.61%
Hedge Fund Holding: 70
McKesson Corporation (NYSE:MCK) is one of the 12 best healthcare stocks to buy now. On June 11, Morgan Stanley reiterated the stock’s ‘Overweight’ rating and increased the price target to $770 from $745. The adjustment follows a discussion with the executive team that left the research firm optimistic about the company’s growth prospects.
According to Morgan Stanley, McKesson is benefiting from enhanced operational performance. Consequently, it remains confident that the company will achieve its fiscal year 2026 earnings per share forecast of $37.31. The bullish outlook underscores the expected improvement in adjusted operating income across various segments.
McKesson Corporation (NYSE:MCK) is a global healthcare company that operates through four main business segments: US Pharmaceutical, Rx Technology Solutions, Medical-Surgical Solutions, and Global Operations. It provides healthcare information technology, medical supplies, and health management tools.
3. Tenet Healthcare Corporation (NYSE:THC)
Year to Date Performance as of June 16: 31.26%
Hedge Fund Holding: 62
Tenet Healthcare Corporation (NYSE:THC) is one of the 12 best healthcare stocks to buy now. On June 12, the stock was in recovery mode following a scathing report from Fuzzy Panda Research alleging that the company engaged in Medicare and Medicaid Fraud.
The short seller alleges the company received over $167 million in excess Medicare outlier payments. It also alleges that the company accelerated outlier gaming activities after its five-year Corporate Integrity agreement ended. Fuzzy Panda also alleges that Tenet charged private jet costs to government programs and used undocumented immigrant newborns to secure Medicaid reimbursement.
In the report, Fuzzy Panda alleged that the company could be hit by fines of between $675 million and $845 million. Over the past 20 years, the company has paid over $2.5 billion in fines.
Tenet Healthcare Corporation (NYSE:THC) is a diversified healthcare company that operates a network of hospitals, ambulatory surgery centers, and other outpatient facilities. It also provides revenue cycle management services through its Conifer Health Solutions subsidiary. Tenet’s mission is to deliver quality, compassionate care in their communities.
2. Cardinal Health, Inc. (NYSE:CAH)
Year to Date Performance as of June 16: 36.76%
Hedge Fund Holding: 60
Cardinal Health, Inc. (NYSE:CAH) is one of the 12 best healthcare stocks to buy now. On June 12, the company raised its fiscal year 2025 diluted earnings per share guidance to between $8.15 and $8.20 from an initial guidance of between $8.05 and $8.15. The company also established a preliminary fiscal year 2026 guidance of between $9.10 and $9.30, affirming expected growth.
In addition, Cardinal Health is targeting a long-term compound annual growth rate of between 12% and 14% for its non-GAAP diluted EPS between 2026 and 2028. It also targets 5% to 7% long-term profit growth in its Pharmaceutical and Specialty Solutions segment. The company also targets $50 million of profit growth under its Global Medical Products and Distribution.
Cardinal Health will achieve $10 billion in adjusted free cash flow over the next three years. It has already increased its baseline share repurchase plans to $750 million from $500 million. The company also plans to invest over $150 million in its Nuclear and Precision Health Solutions to support theranostics and PER product pipeline development.
Cardinal Health, Inc. (NYSE:CAH) is a healthcare company that operates in various sectors, including pharmaceutical distribution, medical product manufacturing and distribution, and performance and data solutions for healthcare facilities. It provides solutions to different healthcare providers, from hospitals and clinics to pharmacies and home care services.
1. Insmed Incorporated (NASDAQ:INSM)
Year to Date Performance as of June 16: 41.14%
Hedge Fund Holding: 64
Insmed Incorporated (NASDAQ:INSM) is one of the 12 best healthcare stocks to buy now. On June 11, Goldman Sachs analyst Andrea Tan reiterated a ‘Buy’ rating on the stock and increased the price target to $112 from $100. The adjustment underscores the analyst’s confidence about the company’s long-term prospects.
The Buy rating comes on the heels of the biopharmaceutical company raising $750 million in a public offering of common stock. It plans to use net proceeds from the offering to accelerate research and development efforts of brensocatib. Part of the funds will also finance the commercialization activities of ARIKAYCE. They will also support the development of treprostinil palmitil inhalation powder and other research initiatives.
Insmed Incorporated (NASDAQ:INSM) is a global biopharmaceutical company focused on developing and commercializing therapeutics for serious and rare diseases. It focuses on respiratory and rare diseases, specifically emphasizing metabolic diseases and endocrine disorders.
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