In this article, we will look at the 12 Best Medical Stocks to Invest In According to Billionaires.
On May 20, Nancy Tengler of Laffer Tengler Investments appeared on CNBC to talk about the market reaction to economic conditions and how a likely pullback represents a good buying opportunity.
Talking about at what point bond yields create a meaningful risk to investors, she was of the view that if they get above the 5% range, then this “correction” or pullback will be justified. However, she also stated that it is important to remember that we also heard many of the same things during the tariff tantrum and the Deepseek period, which, according to her, was an optimal time to buy stocks. The bond market really put pressure on the administration again, and it responded by pulling back and taking a U-turn.
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Tengler further stated that markets do not exist in a vacuum. In this environment, she believes it is prudent to own companies that do not have debt, such as many of the Mag 7 names, as opposed to some of the second-tier names that have huge debt on their balance sheets and continue to need to borrow.
With these broader market trends in view, let’s narrow down and look at the best medical stocks to invest in according to billionaires.
Our Methodology
We sifted through the Finviz stock screener to compile a list of the best medical stocks and selected the top 12 stocks most favored by billionaires. We took the data for the number of billionaire investors for each stock from Insider Monkey’s Q4 2025 database. The stocks are ranked in ascending order of the number of billionaires who hold stakes in them. These stocks are also popular among elite hedge funds.
Note: All data was recorded on May 20.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
12 Best Medical Stocks to Invest In According to Billionaires
12. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Number of Billionaire Holders: 23
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is one of the best medical stocks to invest in according to billionaires. Canaccord cut the price target on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) to $875 from $1,057 on May 19, maintaining a Buy rating on the shares. The firm updated its model on the stock after its Phase 3 study of fianlimab+cemiplimab vs pembrolizumab failed to hit statistical significance on the primary endpoint of progression-free survival (PFS), which it considered a surprising and disappointing event.
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) also received a rating update from Wolfe Research on May 18. The firm cut the price target on the stock to $860 from $900 and reiterated an Outperform rating on the shares. The firm told investors in a research note that the company’s LAG-3 trial missed its primary endpoint, adding that although the opdualag head-to-head trial may have presented a path forward through the FDA, the firm is less optimistic. It further stated that commercial execution will be significant for Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) going forward, while H2 2026 catalysts may be underappreciated.
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a pharmaceutical company that develops, discovers, and commercializes therapies for several diseases, including cancer, eye disorders, and allergic conditions.
11. Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR)
Number of Billionaire Holders: 24
Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) is one of the best medical stocks to invest in according to billionaires. Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) received a rating update from Bernstein on May 13. The firm lifted the price target on the stock to $46 from $35, maintaining a Market Perform rating on the shares and stating that biotech has had a solid start to 2026, up 11% year-to-date, outperforming Pharma and the S&P. The firm’s coverage is up 7% year-to-date on a simple-average basis, and down 3% cap weighted, and it overall maintains a positive view on the sector. Bernstein expects M&A and IPO activity to remain healthy, and considers the recent changes to FDA leadership as a tailwind, especially for less mature companies.
In its financial results for fiscal Q2 2026, ARWR provided insight into key REDEMPLO® commercial events, reporting that it continued to build consistent momentum since its independent launch in the United States. The total prescriptions received and in process to date exceeded 400, representing greater than 40% growth over just the last four weeks alone. The company also reported that a total of around 180 patients to date have received at least one pre-filled syringe shipment, and new weekly prescriptions are accelerating as well.
Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) is a biopharmaceutical company that develops medicines that treat intractable diseases by silencing the genes that cause them.
