In this article, we will look at the 12 Best Medical Stocks to Buy Now.
On September 26, Geoff Meacham, Managing Director of Citi Research, appeared on CNBC’s “Closing Bell Overtime” to talk about President Trump’s plan to impose a 100% tariff on “all any branded or patented Pharmaceutical Product” entering the United States.
President Trump recently announced the imposition of 100% tariffs on pharmaceutical products entering the US starting October 1st, unless they are building domestic manufacturing plants. The EU and Japan would be exempt from the 100% tariff, honoring the 15% cap that was put into place under the current trade deals.
READ ALSO: 11 Best Large Cap Value Stocks to Buy Now and 12 Best Strong Buy Stocks to Invest in According to Wall Street.
Talking about this scenario, Meacham stated that the news could be a relief for investors who have been feeling uncertain about the sector since the initial tariff announcement on April 2nd. While he admitted that this isn’t the best case scenario for the companies, it certainly is a “bit of a derisking event”, according to him.
He added that many pharma companies have already made US investment promises, and he would be surprised if many companies haven’t already built new plants here or expanded their existing ones.
With these trends in view, let’s look at the best medical stocks to buy now.
Our Methodology
We used stock screeners to make a list of the best medical stocks and then selected the top 12 with the highest number of hedge fund holders as of Q2 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was sourced on September 30.
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 Best Medical Stocks to Buy Now
12. Gilead Sciences, Inc. (NASDAQ:GILD)
Number of Hedge Fund Holders: 71
Gilead Sciences, Inc. (NASDAQ:GILD) is one of the best medical stocks to buy now. RBC Capital analyst Brian Abrahams maintained a Hold rating on Gilead Sciences, Inc. (NASDAQ:GILD) on September 29 and set a price target of $98.00.
Gilead Sciences, Inc. (NASDAQ:GILD) reported a 2% growth in its total revenues for fiscal Q2 2025 to $7.1 billion compared to the same period last year, with management attributing the growth to higher HIV, Livdelzi, and Trodelvy sales.
Diluted EPS for the quarter reached $1.56 compared to $1.29 in the prior year period, with the increase primarily driven by net unrealized gains on securities compared to net unrealized losses in 2024 and higher product sales.
Gilead Sciences, Inc. (NASDAQ:GILD) is a biotech company that advances medicines to prevent and treat serious diseases such as cancer, immunodeficiency virus (HIV), viral hepatitis, and COVID-19.
Its portfolio of drugs focuses on medical areas with unmet needs and includes AmBisome, Atripla, Biktarvy, Cayston, Complera, and others. Gilead Sciences, Inc. (NASDAQ:GILD) operates in over 35 countries.
11. HCA Healthcare, Inc. (NYSE:HCA)
Number of Hedge Fund Holders: 73
HCA Healthcare, Inc. (NYSE:HCA) is one of the best medical stocks to buy now. In a report released on September 26, Sarah James from Cantor Fitzgerald reiterated a Buy rating on HCA Healthcare, Inc. (NYSE:HCA) and set a price target of $444.00.
HCA Healthcare, Inc. (NYSE:HCA) reported a 6.4% growth in its revenues for fiscal Q2 2025 to $18.605 billion, while net income attributable to the company rose 13.1% to $1.653 billion.
Management further reported that diluted EPS rose 23.5% to $6.83 per diluted share, while diluted EPS, as adjusted, grew 24.4% to $6.84 per diluted share. Adjusted EBITDA also rose 8.4% to $3.849 billion.
HCA Healthcare, Inc. (NYSE:HCA) is a health care services company involved in the operation of hospitals, urgent care facilities, freestanding surgery centers and emergency care facilities, diagnostic and imaging centers, walk-in clinics, radiation and oncology therapy centers, and more.
10. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 83
Pfizer Inc. (NYSE:PFE) is one of the best medical stocks to buy now. In a report released on September 29, Carter Gould from Cantor Fitzgerald maintained a Hold rating on Pfizer Inc. (NYSE:PFE) and set a price target of $24.00.
In other news, Pfizer Inc. (NYSE:PFE) announced on September 30 the signing of a historic agreement with the Trump Administration ensuring that US patients pay lower prices for their prescription medicines while bolstering the country’s role as the global leader in biopharmaceutical innovation.
Management reported that in response to the four points covered in the President’s July 31st letter, Pfizer Inc. (NYSE:PFE) has “voluntarily agreed to implement measures designed to ensure Americans receive comparable drug prices to those available in other developed countries and pricing newly launched medicines at parity with other key developed markets”.
Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company that manufactures, develops, markets, and sells biopharmaceutical products worldwide. It advances wellness, prevention, treatment, and cures in developing and emerging markets.
9. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 89
AbbVie Inc. (NYSE:ABBV) is one of the best medical stocks to buy now. In a report released on September 25, Courtney Breen from Bernstein maintained a Hold rating on AbbVie Inc. (NYSE:ABBV) without assigning a price target.
AbbVie Inc. (NYSE:ABBV) reported in its fiscal Q2 2025 earnings that the diluted EPS for the quarter reached $0.52 on a GAAP basis, reflecting a 32.5% drop.
Adjusted diluted EPS, however, rose 12.1% to $2.97. Management reported that the results included an “unfavorable impact of $0.42 per share related to acquired IPR&D and milestones expense”.
Furthermore, net revenue for fiscal Q2 2025 rose 6.6% on a reported basis to $15.423 billion.
AbbVie Inc. (NYSE:ABBV) is a research-based pharmaceutical company that develops and sells products to treat chronic diseases in oncology, gastroenterology, rheumatology, dermatology, virology, and various other serious health conditions.
8. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 92
Merck & Co., Inc. (NYSE:MRK) is one of the best medical stocks to buy now. On September 26, Bernstein analyst Courtney Breen maintained a Hold rating on Merck & Co., Inc. (NYSE:MRK). Similarly, Roth MKM also assigned a Hold rating to the stock on September 17 with a $90 price target.
In another report released on September 16, Berenberg Bank also downgraded Merck & Co., Inc. (NYSE:MRK) to a Hold, bringing the price target down to $90 from $100.
Merck & Co., Inc. (NYSE:MRK) has an analyst consensus of Moderate Buy, and the stock’s median price target of $82.78 implies an upside of 18.39% from current levels.
Merck & Co., Inc. (NYSE:MRK) is a biopharmaceutical company that delivers health solutions to advance the treatment and prevention of diseases in animals and people.
Its Pharmaceutical segment offers vaccines and human health pharmaceutical products, typically therapeutic and preventive agents. Its Animal Health segment develops, discovers, manufactures, and markets a range of vaccines and veterinary pharmaceutical products.
7. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 95
Johnson & Johnson (NYSE:JNJ) is one of the best medical stocks to buy now. In a report released on September 30, Matt Miksic from Barclays maintained a Hold rating on Johnson & Johnson (NYSE:JNJ) and set a price target of $176.00.
The rating update came after Johnson & Johnson (NYSE:JNJ) reported on September 29 the approval of TREMFYA for “pediatric patients living with moderate to severe plaque psoriasis, who are candidates for systemic therapy or phototherapy, and active psoriatic arthritis in children six years and older, weighing at least 40 kg”.
Management reported that the approval was based on the PROTOSTAR study that demonstrated pediatric patients receiving TREMFYA attained high levels of skin clearance vs. placebo at Week 16.
Johnson & Johnson (NYSE:JNJ) develops, manufactures, and sells products in the healthcare field. The company operates through two segments: Innovative Medicine and MedTech.
The MedTech segment includes an elaborate range of medical devices and products used in cardiovascular intervention, orthopedics, interventional solutions, surgery, and vision fields.
6. Boston Scientific Corporation (NYSE:BSX)
Number of Hedge Fund Holders: 100
Boston Scientific Corporation (NYSE:BSX) is one of the best medical stocks to buy now. On September 29, RBC Capital analyst Shagun Singh Chadha maintained a Buy rating on Boston Scientific Corporation (NYSE:BSX) and set a price target of $125.00.
Boston Scientific Corporation (NYSE:BSX) reported in its fiscal Q2 2025 earnings that net sales for the quarter reached $5.061 billion, reflecting a 22.8% growth on a reported basis, 21.6% on an operational basis, and 17.4% on an organic basis, all compared to the prior year period.
The company also reported GAAP net income attributable to common stockholders of $797 million or $0.53 per share (EPS), compared to $324 million or $0.22 per share a year ago.
Boston Scientific Corporation (NYSE:BSX) manufactures, develops, and markets medical devices used in interventional medical procedures. Its operations are divided into Cardiovascular and MedSurg segments.
The Cardiovascular segment covers Cardiology and Peripheral Interventions, while the MedSurg segment comprises Urology, Endoscopy, and Neuromodulation.
5. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 107
Intuitive Surgical, Inc. (NASDAQ:ISRG) is one of the best medical stocks to buy now. Morgan Stanley analyst Patrick Wood maintained a Buy rating on Intuitive Surgical, Inc. (NASDAQ:ISRG) on September 29 and set a price target of $650.00.
The analyst based the optimistic rating on the company’s potential in the endoluminal robotics market, reasoning that the recent success of EndoQuest’s PARADIGM trial reflects a notable opportunity for Intuitive Surgical, Inc. (NASDAQ:ISRG). The PARADIGM trial demonstrated the feasibility of performing complex colorectal lesions using endoscopic submucosal dissection (ESD).
Wood noted that while the procedure is technically challenging, it offers improved clinical outcomes compared to the more common methods in practice in the United States, which is why its success could pave the way for a broader adoption of robotic-assisted surgeries.
Intuitive Surgical, Inc. (NASDAQ:ISRG) has an elaborate ecosystem of services and products that provide robotic-assisted surgical solutions and invasive care. Its products include the Ion Endoluminal and the Da Vinci Surgical systems.
4. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders: 115
Danaher Corporation (NYSE:DHR) is one of the best medical stocks to buy now. On September 22, BofA lowered the firm’s price target on Danaher Corporation (NYSE:DHR) to $220 from $230 while keeping a Buy rating on the shares.
The firm told investors that although some trends are showing stabilization and/or improvement in certain areas of Life Sciences and Diagnostic Tools, there exist several pockets of uncertainty and softness over the past year.
BofA expects these trends to persist for at least the next few quarters, which is why it is trimming forecasts for many core Tools companies and now expects a more gradual return to “normal.”
Danaher Corporation (NYSE:DHR) designs, manufactures, and markets professional, medical, industrial, and commercial products and services, making it a significant diagnostics stock. It operates through Diagnostics, Biotechnology, Life Sciences, and Environmental and Applied Solutions.
Its Biotechnology segment offers a range of equipment and consumables for biological medicines. In contrast, the Life Diagnostics segment offers clinical instruments, devices, consumables, and other services for diagnosing and treating diseases.
3. Thermo Fisher Scientific Inc. (NYSE:TMO)
Number of Hedge Fund Holders: 117
Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the best medical stocks to buy now. Bank of America Securities analyst Michael Ryskin reiterated a Buy rating on Thermo Fisher Scientific Inc. (NYSE:TMO) on September 22, setting a price target of $560.00.
The same day, Eve Burstein from Bernstein also reiterated a Buy rating on the stock and set a price target of $570.00.
Similarly, Barclays upgraded Thermo Fisher Scientific Inc. (NYSE:TMO) to Overweight from Equal Weight on September 11, raising the price target to $550 from $490.
Thermo Fisher Scientific Inc. (NYSE:TMO) provides analytical instruments, reagents, equipment, software, and other services for analysis, research, diagnostics, and discovery. It operates through the Analytical Instruments, Life Sciences Solutions, Laboratory Products and Services, and Specialty Diagnostics segments.
2. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 119
Eli Lilly and Company (NYSE:LLY) is one of the best medical stocks to buy now. In a report released on September 26, CFRA upgraded Eli Lilly and Company (NYSE:LLY) to a Buy, setting a price target of $835.00.
Eli Lilly and Company (NYSE:LLY) reported a 38% growth in its revenue for fiscal Q2 2025 to $15.56 billion, driven primarily by volume growth from Zepbound and Mounjaro.
The company also increased the midpoint of its 2025 full-year revenue guidance by $1.5 billion to be in the $60 billion to $62 billion range, with reported EPS guidance raised to be in the range of $20.85 to $22.10.
Eli Lilly and Company (NYSE:LLY) develops, manufactures, discovers, and sells pharmaceutical products. These products span oncology, diabetes, immunology, neuroscience, and other therapies.
1. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 159
UnitedHealth Group Incorporated (NYSE:UNH) is one of the best medical stocks to buy now. In a report released on September 18, Ryan Langston from TD Cowen maintained a Hold rating on UnitedHealth Group Incorporated (NYSE:UNH) and set a price target of $275.00.
However, UBS reiterated a Buy rating on UnitedHealth Group Incorporated (NYSE:UNH) on September 19 with a $378 price target. Lance Wilkes from Bernstein also expressed bullish sentiments for the stock on September 17, assigning UnitedHealth Group Incorporated (NYSE:UNH) a Buy rating with a $379 price target.
UnitedHealth Group Incorporated (NYSE:UNH) provides healthcare coverage, data consultancy, and software services. It operates through the OptumRx, OptumInsight, OptumHealth, and UnitedHealthCare segments.
While we acknowledge the potential of UNH to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UNH and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
