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.
READ NOW: 10 Best Airline Stocks to Buy According to Reddit AND 9 Best Communication Stocks to Invest In.
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.
10. Pfizer Inc. (NYSE:PFE)
Number of Billionaire Holders: 25
Pfizer Inc. (NYSE:PFE) is one of the best medical stocks to invest in according to billionaires. Pfizer Inc. (NYSE:PFE) announced on May 20 data from its Phase 2 study evaluating the safety, tolerability, and immunogenicity of a four-dose series of its investigational 25-valent pneumococcal conjugate vaccine candidate PF-07872412 in infants compared to four doses of PREVNAR 20 at months 2, 4, 6, and 12-15. The company reported that, based on the strong immune responses observed for all 25vPnC serotypes from Phase 2, compared to PREVNAR 20, it is confident that the required non-inferiority thresholds may be attained for the 25vPnG pediatric Phase 3 program.
Pfizer Inc. (NYSE:PFE) reported key preliminary data from the broader Phase 2 study at the 14th meeting of the International Society of Pneumonia & Pneumococcal Diseases in Copenhagen, Denmark (ISPPD). Annaliesa Anderson, Ph.D., Senior Vice President and Chief Vaccines Officer, Pfizer Inc. (NYSE:PFE), stated that the Phase 2 results reinforce the company’s confidence in a “next-generation vaccine designed to expand protection across serotypes while improving responses to key residual disease drivers such as serotype 3”.
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, and is also involved in developing immunotherapies that help the immune system to recognize and attack cancer cells.
9. Revolution Medicines, Inc. (NASDAQ:RVMD)
Number of Billionaire Holders: 26
Revolution Medicines, Inc. (NASDAQ:RVMD) is one of the best medical stocks to invest in according to billionaires. Truist assumed coverage of Revolution Medicines, Inc. (NASDAQ:RVMD) with a Buy rating on May 18, adjusting the price target on the stock to $179 from $116. The firm told investors in a research note that it views daraxon as the “leading anchor” across RAS-mutant cancers, and that the drug could capture over 70% of the pancreatic ductal adenocarcinoma addressable market. The firm considers Revolution Medicines, Inc.’s (NASDAQ:RVMD) “first-in-class positioning, high efficacy barrier, and broad trial footprint, as supporting a durable moat and competitive offense”.
In a separate development, Revolution Medicines, Inc. (NASDAQ:RVMD) announced on May 1 that the U.S. Food and Drug Administration (FDA) issued a “safe to proceed” letter to the company, allowing the initiation of an expanded access treatment protocol (EAP) for daraxonrasib in patients with previously treated metastatic pancreatic ductal adenocarcinoma (PDAC). Daraxonrasib is an investigational RAS(ON) inhibitor.
Revolution Medicines, Inc. (NASDAQ:RVMD) is a clinical-stage precision oncology company that develops novel targeted therapies. It discovers and develops cancer treatments through novel combination and monotherapy treatment regimens that enhance clinical benefits.
8. Thermo Fisher Scientific Inc. (NYSE:TMO)
Number of Billionaire Holders: 27
Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the best medical stocks to invest in according to billionaires. Thermo Fisher Scientific Inc. (NYSE:TMO) announced on May 18 the opening of a new bioanalytical and biomarker laboratory in Gothenburg, Sweden. Management stated that the new facility is located within GoCo Health Innovation City and expands the company’s global bioanalytical capabilities to support biotechnology and pharmaceutical customers across all phases of drug development.
Thermo Fisher Scientific Inc. (NYSE:TMO) reported that the facility boasts an advanced technology suite that includes cell-based assays, liquid chromatography-mass spectrometry, immunochemistry, molecular genomics, flow cytometry, and proteomics, which supports both small molecules and complex therapeutic modalities.
For reference, in its financial results for fiscal Q1 2026, Thermo Fisher Scientific Inc. (NYSE:TMO) reported that revenue for the quarter rose 6% to $11.01 billion, compared to $10.36 billion in the same quarter last year. Organic revenue underwent a 1% growth. Management further reported that the GAAP diluted EPS in fiscal Q1 2026 was $4.43, reflecting an 11% growth compared to the prior year period. GAAP operating income for the quarter reached $1.86 billion, up 9% versus the year-ago quarter, while GAAP operating margin was 16.9%, compared with 16.6% in fiscal Q1 2025.
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.
7. Johnson & Johnson (NYSE:JNJ)
Number of Billionaire Holders: 28
Johnson & Johnson (NYSE:JNJ) is one of the best medical stocks to invest in according to billionaires. Johnson & Johnson (NYSE:JNJ) announced on May 21 a collaboration with the Department of Health – Abu Dhabi (DOH) for the launch of a global program to develop an open surgical intelligence network. The Department of Health – Abu Dhabi (DOH) is the regulator of the healthcare sector in Abu Dhabi, UAE, and the collaboration establishes Abu Dhabi as the “first node” in a global infrastructure aimed at accelerating AI innovation for all stages of the surgery experience.
Johnson & Johnson (NYSE:JNJ) further reported that by integrating its Polyphonic™ open digital ecosystem with the Department of Health – Abu Dhabi and technology partners, including Nvidia and Amazon Web Services, the initiative aims to deploy the Polyphonic Surgery application into Abu Dhabi’s intelligent health system, which would connect operating rooms across the emirate to a surgical intelligence system. Management also stated that the initiative aligns with the company’s endeavors to “shape the future of surgery across open, laparoscopic, and robotic surgery”.
Johnson & Johnson (NYSE:JNJ) develops, manufactures, and sells products in the healthcare field. The company operates through two segments: Innovative Medicine and MedTech. The Innovative Medicine segment focuses on various therapeutic areas, including oncology, infectious diseases, immunology, cardiovascular and metabolic diseases, and others. The MedTech segment includes an elaborate range of medical devices and products used in cardiovascular intervention, orthopedics, interventional solutions, surgery, and vision fields.
6. CVS Health Corporation (NYSE:CVS)
Number of Billionaire Holders: 29
CVS Health Corporation (NYSE:CVS) is one of the best medical stocks to invest in according to billionaires. Morgan Stanley lifted the price target on CVS Health Corporation (NYSE:CVS) to $106 from $93 on May 14, maintaining an Overweight rating on the shares. CVS Health Corporation (NYSE:CVS) also received a rating update from Bernstein on May 13, with the firm lifting the price target on the stock to $106 from $94 and reiterating an Outperform rating on the shares.
The firm stated that it is continuing to see the company as having an attractive exposure to the Medicare Advantage turnaround, as well as potential for more stable earnings in its pharmacy and pharmacy benefit manager businesses post-PBM reform. It added that with the PBM bill and the first Federal Trade Commission settlement earlier this year, the firm considers the PBM reform as largely complete and a clearing event, driving less uncertainty around CVS Health Corporation’s (NYSE:CVS) turnaround.
CVS Health Corporation (NYSE:CVS) is a health solutions company that operates in four segments: healthcare benefits, health services, pharmacy & consumer wellness, and corporate/other.
While we acknowledge the potential of CVS 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 CVS and that has 100x upside potential, check out our report about the cheapest AI stock.
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