In this article, we will discuss the Goldman Sachs Healthcare Stocks: Top 10 Stock Picks.
The healthcare sector, long seen as a laggard amid the artificial intelligence boom, is beginning to turn the corner. Over the past six months, the S&P 500 Healthcare sector has rallied nearly 10%, far outpacing the broader index’s 0.26% gain as of March 13, underscoring its role as a defensive play in times of geopolitical and economic uncertainty. Analysts project global healthcare spending to surge from $11.2 trillion today to $20.5 trillion by 2050, driven by rising demand for health-related products and services.
Yet, according to the World Economic Forum (Jan 2026), the industry faces mounting strain from ageing populations, a looming 10 million‑worker shortfall by 2030, and costs rising faster than GDP. Despite more than $100 billion invested in U.S. digital health since 2010, most AI solutions remain unscalable, with over 70% of FDA approvals concentrated in imaging and limited adoption due to fragmented data, strict regulations, and systemic inefficiencies.
As experts stress, “Unlocking the full potential of digital solutions and AI in healthcare requires coordinated stakeholder action,” highlighting clinical entrepreneurship as a powerful but underutilized driver of innovation.
Goldman Strategists have already touted stocks of companies with tangible, productive assets as likely to hold steady amid emerging headwinds. According to the strategists, capital-intensive stocks that derive value from physical assets are outperforming as investors turn their attention to heavy assets.
“Markets are rewarding capacity, networks, infrastructure and engineering complexity—assets that are costly to replicate and less exposed to technological obsolescence,” wrote Guillaume Jaisson of Goldman Sachs.
Morgan Stanley strategists also echo similar sentiments, signaling that the focus has shifted from asset-light sectors like software. While healthcare stocks have underperformed in recent years ,a rotation from high-flying tech stocks trading at historical norms has once again triggered renewed interest in sectors trading at highly discounted valuations.
Last year, Goldman Sachs strategist David Kostin reiterated that a slump in the broader healthcare sector had created opportunities. The underperformance has resulted in valuations near record discounts at a time when other sectors, like tech, are trading above historical norms.
Given the ongoing rotation away from sectors trading at premium valuations, now may be the best time to examine Goldman Sachs’ top healthcare stocks in greater detail.
Our Methodology
To compile the list of the Goldman Sachs Healthcare Stocks: Top Stock Picks, we scanned the Goldman Sachs investment portfolio. We settled on the investment bank’s top healthcare picks. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
Goldman Sachs Healthcare Stocks: Top Stock Picks
10. Pfizer Inc. (NYSE:PFE)
Goldman Sachs Equity Stakes: $997.18 Million
Pfizer Inc. (NYSE:PFE) is one of Goldman Sachs top healthcare stocks. On March 9, analysts at BMO reiterated an Outperform rating on Pfizer Inc. (NYSE:PFE) and a $30 price target. The bullish stance follows positive phase 2 data on the company’s tri-specific antibody tilrekimig.
Trial results showed that the once-a-month inhibitor achieved a placebo-adjusted high of 51.9% in the middle-dose group. It compares to a high of 36% at 16 weeks for Regeneron’s Dupixent. The investigational drug also met its primary endpoint in the Phase 2 study for adults with atopic dermatitis, a skin disease that causes itching.
The trial results suggest a potentially higher competitive profile, with greater efficacy than the current treatment option from Sanofi and Regeneron. The positive results strengthen the company’s positioning in the immunology and inflammation sectors. In addition, it should provide Pfizer with a catalyst as it continues to rebuild momentum across its pipeline.
Pfizer Inc. (NYSE:PFE) is a leading global biopharmaceutical company that discovers, develops, manufactures, and markets innovative medicines and vaccines to treat and prevent diseases. Focused on oncology, inflammation, immunology, and vaccines, Pfizer offers over 150 products worldwide, including major COVID-19 vaccines and treatments.
9. Gilead Sciences, Inc. (NASDAQ:GILD)
Goldman Sachs Equity Stake: $1.07 Billion
Gilead Sciences Inc. (NASDAQ:GILD) is one of Goldman Sachs top healthcare stocks. On March 10, Jefferies initiated coverage of Gilead Sciences Inc. (NASDAQ:GILD) with a Buy rating and a $180 price target. The research firm has touted the company’s earnings-per-share growth and margin-expansion prospects as part of its bullish thesis.
According to the research firm, the company is not facing any near-term intellectual property cliffs or significant operating leverage. Instead, it is well positioned with its HIV franchise and the prospects for follow-on products. The research firm is also optimistic about the company’s prospects with the launch of Yetzugo in pre-exposure prophylaxis.
In addition, Gilead Sciences is making significant progress on its pipeline development. A phase 3 RAINIER trial for drug povetacicept has already met primary and secondary endpoints in treating immunoglobulin A nephropathy (IgAN).
Amid the pipeline development, Gilead has also inked a $7.8 billion deal to acquire blood cancer drug developer Arcellx. The deal follows a long partnership, signed in 2022, for the commercialization of medicines to combat multiple myeloma.
Gilead Sciences, Inc. (NASDAQ:GILD) is a US-based biopharmaceutical company that discovers, develops, and commercializes innovative medicines for life-threatening diseases, particularly in virology, oncology, and inflammation. It is known for its leadership in antiviral therapies for HIV, Hepatitis B and C, and COVID-19, with a strong focus on expanding its impact globally, including in Asia.
