In this article, we will be taking a look at the 12 Best Performing Healthcare Stocks to Buy Right Now.
Spending on healthcare in the US is predicted to hit $5.3 trillion this year, making it one of the largest in the world. Although it is frequently thought of as a defensive industry that fared better in unpredictable times, that has not been the case. Despite the general equities market’s 12% gain so far this year and its rise to record highs, the sector is down roughly 1% for the year.
Over the last three years, the healthcare industry has produced mediocre returns for investors. In 2022, the industry fell 3.6%, but in 2023 and 2024, it increased by 0.3% and 0.9%, respectively. In 2025, the modest gains have persisted, with the healthcare sector being one of four S&P 500 sectors seeing negative returns.
The Trump administration’s actions are the main cause of the 2025 underperformance. Pressure for reduced drug pricing has been a problem for healthcare organizations, and tariffs on pharmaceuticals have made matters worse. The problem has been made worse by cuts to programs like Medicaid and health research.
“You have got this constant overarching political and regulatory overhang that doesn’t really seem to subside with any administration,” said Jared Holz, healthcare sector strategist at Mizuho Securities. “When you have so much nebulousness around the sector, it turns people off rather than invites them to the party.”
Despite the poor performance, the long-term outlook remains favorable. This is because the industry produces goods and services that are necessary for human survival. Similarly, the majority of equities are now trading at steep discounts due to the underperformance.
“Our perspective is a lot of this bad news is priced in and then some,” said Patrick Kaser, portfolio manager at Brandywine Global. “To bet against the sector from here, you’re essentially continuing to bet on the valuation gap, which is already large, continuing to widen.”
With these trends in mind, let’s take a look at the best-performing healthcare stocks to buy right now.
Our Methodology
For our methodology, we first screened healthcare stocks using the Stock Analysis screener, selecting those with year-to-date (YTD) returns of 20% or more. From this pool, we identified the 12 stocks with the highest YTD returns. The final ranking was then determined based on the number of hedge fund holders in each stock, arranged in ascending order as of Q2 2025, according to data from the Insider Monkey database.
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).
Here is our list of the 12 best-performing healthcare stocks to buy right now.
12. Celcuity Inc. (NASDAQ:CELC)
Number of Hedge Fund Holders: 15
Celcuity Inc. (NASDAQ:CELC) is a clinical-stage biotechnology company developing targeted oncology therapies, with a focus on solid tumors such as advanced breast cancer. Its lead drug candidate, gedatolisib, targets the PI3K and mTOR pathways, key drivers of tumor growth and resistance, aiming to improve outcomes for patients with hormone receptor-positive (HR+), HER2-negative advanced breast cancer. CELC stands twelfth on our list among the best performing stocks.
In August 2025, the U.S. FDA accepted CELC’s New Drug Application (NDA) for gedatolisib under the Real-Time Oncology Review (RTOR) program, allowing for a faster and more efficient regulatory process. The firm began its rolling submission in September and expects to complete it in the fourth quarter of 2025. This milestone follows strong Phase 3 VIKTORIA-1 trial results, which showed that gedatolisib significantly reduced disease progression risk and improved progression-free survival in the PIK3CA wild-type cohort. The therapy also holds Breakthrough Therapy and Fast Track designations, highlighting its potential to address unmet needs in patients who no longer respond to CDK4/6 inhibitors.
To support its late-stage development and prepare for commercialization, Celcuity Inc. (NASDAQ:CELC) recently expanded its senior secured credit facility to $500 million. The additional capital strengthens the company’s financial position, reduces liquidity concerns, and ensures resources are in place as it advances toward potential FDA approval and market launch.
11. ABIVAX Société Anonyme (NASDAQ:ABVX)
Number of Hedge Fund Holders: 17
ABIVAX Société Anonyme (NASDAQ:ABVX) is a clinical-stage biotechnology company developing therapies to regulate immune responses in chronic inflammatory diseases. Its lead candidate, obefazimod (ABX464), is an oral miR-124 enhancer currently in Phase 3 trials for ulcerative colitis (UC) and Phase 2b trials for Crohn’s disease.
In September 2025, ABVX announced it would present late-breaking data from the ABTECT Phase 3 induction trials at the United European Gastroenterology (UEG) Congress in Berlin on October 6. The presentation will highlight eight-week efficacy results of obefazimod, including outcomes in patients who previously did not respond to advanced therapies. Alongside the congress, the business will host an investor call and a symposium on new treatment mechanisms for UC.
Earlier in July, the corporation reported positive topline data from two Phase 3 induction trials in moderate to severe UC. Results showed a pooled clinical remission rate 16.4% higher than placebo, with the 50 mg dose achieving a 19.3% placebo-adjusted remission rate. Based on ongoing maintenance studies, ABVX plans to submit U.S. and European regulatory applications in the second half of 2026.
To support these late-stage programs, ABIVAX Société Anonyme (NASDAQ:ABVX) strengthened its financial position with a $650 million (€554 million) public offering in July 2025. The funding extends the company’s cash runway into the fourth quarter of 2027, bolstering investor confidence as it advances obefazimod toward potential approval and commercialization.
10. Indivior PLC (NASDAQ:INDV)
Number of Hedge Fund Holders: 23
Indivior PLC (NASDAQ:INDV) is a pharmaceutical company specializing in treatments for opioid use disorder (OUD), with its core products SUBLOCADE, a once-monthly buprenorphine injection, and SUBOXONE film forming the backbone of its revenue.
In September 2025, the corporation reported strong Q2 results, with total net revenue of $302 million. SUBLOCADE sales rose 9% year-over-year to $209 million, driven by a 20% increase in U.S. volumes versus Q1 2025. The company subsequently raised its full-year 2025 revenue guidance to $1.03–$1.08 billion, up from $955 million–$1.025 billion, while adjusted EBITDA guidance increased to $275–$300 million, positioning Indivior among the best performing stocks in its sector.
These results reflect progress on the “Indivior Action Agenda,” a strategic initiative focused on expanding SUBLOCADE in the U.S. and streamlining operations to boost efficiency and cash generation. The company also consolidated its stock listing to Nasdaq in July 2025, emphasizing a U.S.-focused growth strategy. Strengthening commercial leadership, Patrick Barry joined as Chief Commercial Officer in May, bringing over 30 years of pharmaceutical experience to accelerate SUBLOCADE commercialization.
Looking ahead, Indivior PLC (NASDAQ:INDV) expects continued SUBLOCADE growth through 2026 and beyond, alongside operational improvements that enhance shareholder value. The company is progressing toward resolving litigation settlement liabilities by 2027, which will improve financial flexibility. Research and development remain active, with pipeline programs INDV-2000 and INDV-6001 targeting next-generation treatments for OUD and related conditions.
9. Cidara Therapeutics, Inc. (NASDAQ:CDTX)
Number of Hedge Fund Holders: 34
Cidara Therapeutics, Inc. (NASDAQ:CDTX) is a biotechnology company leveraging its proprietary Cloudbreak® platform to develop drug-Fc conjugate (DFC) therapeutics. Its lead candidate, CD388, is a long-acting antiviral designed to provide universal prevention of seasonal and pandemic influenza with a single dose by directly inhibiting viral replication.
In September 2025, CDTX gained momentum following an End-of-Phase 2 meeting with the FDA, announcing an accelerated and expanded Phase 3 trial for CD388. The study start has been moved up by six months to align with the fall flu season, and the participant pool now includes adults over 65, high-risk, and immunocompromised individuals aged 12 and older, effectively doubling the potential U.S. patient market to over 100 million. The FDA indicated that a single successful Phase 3 trial may suffice for biologics license application approval, streamlining CD388’s path to market.
Supporting this expansion, dosing began in September 2025 for the Phase 3 ANCHOR trial, enrolling 6,000 participants to prevent seasonal influenza in high-risk populations. Positive Phase 2b NAVIGATE study results and encouraging preclinical data against H5N1 influenza have further strengthened investor confidence, with analysts raising the company’s price targets up to $167. The stock recently surged over 19% amid strong market anticipation.
Beyond influenza, Cidara Therapeutics, Inc. (NASDAQ:CDTX) is advancing other DFC programs, including CBO421 for oncology, which targets CD73 in solid tumors and has received investigational new drug (IND) clearance. This diversification highlights the company’s growth potential across multiple therapeutic areas, positioning CDTX as a notable player in innovative biotech development.
8. uniQure N.V. (NASDAQ:QURE)
Number of Hedge Fund Holders: 36
uniQure N.V. (NASDAQ:QURE) is a leading gene therapy company focused on developing transformative treatments for severe medical conditions. Its pipeline includes HEMGENIX for hemophilia B and AMT-130, a gene therapy candidate for Huntington’s disease, which has recently attracted significant attention.
In late September 2025, uniQure N.V. (NASDAQ:QURE) announced positive topline results from pivotal Phase I/II trials of AMT-130, showing a 75% slowing of disease progression over three years. These results mark a major milestone and set the stage for a Biologics License Application (BLA) submission to the FDA in early 2026, aiming for near-term market approval.
To support development and commercialization, the business raised $300 million through a public offering and secured a $175 million senior secured term loan. Alongside AMT-130, QURE continues to advance other gene therapy candidates, including AMT-260 for mesial temporal lobe epilepsy, AMT-162 for ALS, and AMT-191 for Fabry disease, highlighting a diversified pipeline targeting rare diseases.
Analysts have responded positively to the firm’s clinical breakthroughs and financial backing, with strong buy ratings and optimistic price targets. The combination of groundbreaking AMT-130 data, robust funding, and a broad pipeline positions uniQure N.V. (NASDAQ:QURE) among the best performing stocks in the healthcare sector, offering potential transformative impact for patients and promising near-term growth for investors.
7. iRhythm Technologies, Inc. (NASDAQ:IRTC)
Number of Hedge Fund Holders: 36
iRhythm Technologies, Inc. (NASDAQ:IRTC) is a digital healthcare leader specializing in device-based ambulatory cardiac monitoring, with its flagship Zio platform combining wearable biosensors, cloud analytics, and proprietary algorithms to deliver actionable cardiac data efficiently.
In September 2025, IRTC faced regulatory and legal challenges, including an FDA Warning Letter concerning its Zio AT System and a securities class action lawsuit linked to prior non-conformity findings. These developments have heightened perceived risks around compliance and corporate governance.
Despite these headwinds, the corporation demonstrated strong financial performance. Q2 2025 revenue reached $186.7 million, up 26.1% year-over-year, surpassing analyst expectations. Year-to-date, IRTC shares have gained nearly 96%, reflecting investor confidence in its growth trajectory.
Looking ahead, iRhythm Technologies, Inc. (NASDAQ:IRTC) ’s expansion plans center on broadening Zio’s adoption beyond traditional cardiology into international markets and other healthcare segments. Ongoing clinical validation trials, like AMALFI for high-risk atrial fibrillation detection, support this growth. Innovation efforts include next-generation wearable patches, AI-enhanced analytics, and partnerships such as with Lucem Health to improve diagnostic accuracy, workflow efficiency, and margins.
6. 89bio, Inc. (NASDAQ:ETNB)
Number of Hedge Fund Holders: 39
89bio, Inc. (NASDAQ:ETNB), a clinical-stage biopharmaceutical company, focuses on developing therapies for liver and cardiometabolic diseases, particularly metabolic dysfunction-associated steatohepatitis (MASH). Its lead candidate, pegozafermin, is a long-acting FGF21 analog designed to treat moderate to severe MASH, including advanced fibrosis, as well as related metabolic disorders.
In September 2025, Roche announced a definitive agreement to acquire 89bio, Inc. (NASDAQ:ETNB) for $14.50 per share in cash, valuing the company at approximately $2.4 billion. Shareholders will also receive a non-tradeable contingent value right (CVR) potentially worth up to $6 per share based on pegozafermin’s commercial success, bringing the total deal value to roughly $3.5 billion. This acquisition reflects strong confidence in pegozafermin’s potential as a best-in-class therapy for MASH, a serious liver condition often associated with obesity, and positions ETNB among the best performing stocks in the biotech sector.
Roche plans to integrate pegozafermin into its cardiovascular, renal, and metabolic portfolio, leveraging global development, manufacturing, and commercialization capabilities to maximize the therapy’s impact. The transaction is expected to close in Q4 2025 following unanimous board approval from both companies.
5. Mineralys Therapeutics, Inc. (NASDAQ:MLYS)
Number of Hedge Fund Holders: 40
Mineralys Therapeutics, Inc. (NASDAQ:MLYS), a clinical-stage biopharmaceutical company, focuses on developing therapies for diseases caused by dysregulated aldosterone, including hypertension, chronic kidney disease (CKD), and obstructive sleep apnea. Its lead candidate, lorundrostat, is an oral, highly selective aldosterone synthase inhibitor designed to treat cardiorenal conditions.
In September 2025, MLYS presented new positive subgroup data from its Phase 3 Launch-HTN trial at the American Heart Association Hypertension Scientific Sessions. The results showed significant and consistent blood pressure reductions in high-risk populations, including Black or African American adults, older adults, women, and patients with comorbid obesity. The data also highlighted a favorable safety and tolerability profile, reinforcing lorundrostat’s potential as a treatment for difficult-to-manage hypertension.
Looking ahead, the business plans a pre-NDA meeting with the FDA later this year, aiming for a New Drug Application filing as early as Q1 2026. This regulatory step is critical for advancing lorundrostat toward potential approval and commercial launch.
To support ongoing clinical and regulatory efforts, Mineralys Therapeutics, Inc. (NASDAQ:MLYS) completed an upsized $287.5 million public offering in early September 2025, strengthening its financial position and enabling continued development.
4. Guardant Health, Inc. (NASDAQ:GH)
Number of Hedge Fund Holders: 46
Guardant Health, Inc. (NASDAQ:GH), a leading precision oncology company, specializes in blood-based cancer diagnostics, with its flagship Shield test for colorectal cancer (CRC) using AI-driven liquid biopsy technology.
In September 2025, GH unveiled Shield V2, an upgraded version of its CRC test with improved sensitivity (84%) and specificity (90%), enhancing early cancer detection and potential clinical adoption. GH is also expanding commercial access through partnerships with LabFlorida and PathGroup, reaching over 250 hospitals and health systems across 25 states.
Financial performance shows strong momentum, with revenue rising 30.9% year-over-year and full-year 2025 guidance raised to $915-$925 million, positioning GH among the best performing stocks in the diagnostics sector. Looking ahead, Guardant Health, Inc. (NASDAQ:GH) plans to launch its Shield multi-cancer blood test in October 2025, aiming to detect multiple cancers early and significantly expand its diagnostic portfolio, tapping a market with an estimated $50 billion annual potential. Strategic moves include adding former U.S. Health and Human Services Secretary Alex Azar to the board to support commercialization and regulatory efforts.
The firm is also actively defending its intellectual property, recently filing a lawsuit against Sophia Genetics in Paris over liquid biopsy technology, reinforcing its competitive position in precision oncology.
3. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
Number of Hedge Fund Holders: 58
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), a leading biotech company specializing in RNA interference (RNAi) therapeutics, is advancing treatments for rare and prevalent diseases, notably transthyretin amyloidosis (ATTR). Its flagship product, Amvuttra (vutrisiran), treats both hereditary and cardiomyopathy forms of ATTR.
In Q2 2025, Amvuttra sales surged to $492 million, surpassing the $350 million consensus, driven by expanded use for ATTR cardiomyopathy approved in March 2025. Approximately 1,400 patients were on therapy by the end of the quarter. Strong performance prompted ALNY to raise its 2025 revenue guidance for Amvuttra and Onpattro to $2.18–$2.28 billion, with total projected net revenues between $2.65–$2.8 billion. This growth has lifted the company’s market valuation above $50 billion, with shares up over 15% recently.
Amvuttra’s quarterly subcutaneous administration may enhance patient adherence compared to oral competitors like Pfizer’s tafamidis and BridgeBio’s Attruby. Priced at $476,000 annually for cardiomyopathy, it is increasingly used as a first-line therapy, with commercial and Medicare payers approving treatment without prior competitor use, supporting sustainable growth in the U.S. market.
Beyond commercial success, Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is advancing its pipeline, including RNAi therapeutics for cardiovascular disease, such as zilebesiran for hypertension. The business also presented 12-month HELIOS-B Phase 3 data showing sustained benefits of Amvuttra in ATTR cardiomyopathy. Additionally, ALNY joined the Alliance for Genomic Discovery in September 2025, leveraging large-scale genomic datasets to accelerate target discovery and innovation in gene silencing therapies.
2. Verona Pharma plc (NASDAQ:VRNA)
Number of Hedge Fund Holders: 59
Verona Pharma plc (NASDAQ:VRNA) is a biopharmaceutical company developing therapies for respiratory diseases. Its lead product, Ohtuvayre (ensifentrine), is a first-in-class inhaled dual inhibitor of PDE3 and PDE4 for maintenance treatment of chronic obstructive pulmonary disease (COPD). Combining bronchodilator and anti-inflammatory effects, Ohtuvayre received FDA approval in June 2024 and has seen rapid adoption since its launch.
In September 2025, Verona Pharma plc (NASDAQ:VRNA) shareholders approved Merck & Co., Inc.’s $10 billion acquisition of the company, with 99.49% voting in favor. The deal is expected to close on October 7, 2025, pending final UK court approval. This acquisition strengthens MRK’s respiratory portfolio ahead of upcoming patent expirations on Keytruda, with Ohtuvayre providing a high-growth addition. VRNA’s management highlighted that Merck’s commercial and clinical capabilities will accelerate the drug’s reach to COPD patients, while Ohtuvayre is also being evaluated for non-cystic fibrosis bronchiectasis in ongoing trials.
Verona Pharma plc (NASDAQ:VRNA) continues to generate strong financial momentum. Q1 2025 net revenues reached $76.3 million, nearly double Q4 2024, driven primarily by Ohtuvayre sales. The corporation also presented updated Phase 3 ENHANCE study data at the European Respiratory Society International Congress in September 2025, reinforcing the drug’s efficacy across a broad COPD population.
1. Insmed Incorporated (NASDAQ:INSM)
Number of Hedge Fund Holders: 82
Insmed Incorporated (NASDAQ:INSM) tops our list for being one of the best performing stocks. It is a biopharmaceutical company focused on rare diseases, with a portfolio targeting serious conditions with unmet medical needs. Its flagship product, ARIKAYCE® (amikacin liposome inhalation suspension), addresses lung infections and has shown strong market growth.
Recently, INSM gained significant investor attention after FDA approval of Brinsupri for non-CF bronchiectasis. This milestone boosted stock performance, with shares rising nearly 9%, and prompted analysts to raise price targets, JPMorgan to $135, Stifel to $145, and H.C. Wainwright to $240, reflecting Brinsupri’s potential to generate $7 billion in revenue by 2033.
Financially, the business reported Q2 2025 revenues of $107.4 million for ARIKAYCE, up 19% year-over-year, with a strong gross margin of 75.7%, despite a net loss of $321.7 million. The company also completed a public offering, raising approximately $823 million to fund pipeline development and commercialization.
Looking ahead, Insmed Incorporated (NASDAQ:INSM)’s pipeline includes several promising late-stage assets. Brensocatib received FDA approval on August 12, 2025, while the Treprostinil Palmitil Inhalation Powder (TPIP) program is progressing toward Phase 3 studies for pulmonary hypertension, expected to begin in late 2025 and early 2026. These developments position INSM for continued growth and expansion in the rare disease market.
While we acknowledge the potential of INSMto 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 INSM and that has 100x upside potential, check out our report about this cheapest AI stock.
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