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. 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. 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. 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. 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.
8. AstraZeneca PLC (NYSE:AZN)
Goldman Sachs Equity Stake: $1.32 Billion
AstraZeneca PLC (NYSE:AZN) is one of Goldman Sachs top healthcare stocks. On March 9, AstraZeneca PLC and Daiichi Sankyo secured Priority Review in the US for Enhertu, their candidate drug for patients with HER2-positive breast cancer.
The priority review comes on the heels of the Food and Drug Administration granting Enhertu Breakthrough Therapy Designation, given its potential to offer significant improvements over available treatment options. The designation is poised to accelerate the development and regulatory review of the candidate drug, given its potential to treat a serious condition.
The FDA priority review asserts the potential of Enhertu to become a new standard of care for HER2-positive early breast cancer based on the DESTINY-Breast05 Phase III trial. Trial results underscored the candidate’s drug potential to reduce the risk of invasive disease recurrence or death by 53%. The safety profile was consistent and did not trigger any new safety concerns.
Enhertu is currently approved in more than 90 countries as a treatment option for HER2-positive metastatic breast cancer.
Susan Galbraith, Executive Vice President, Oncology Haematology R&D, AstraZeneca, said: “While there has been significant progress in treating HER2-positive early breast cancer, managing patients at a higher risk of recurrence remains challenging. With this Priority Review, we move closer to bringing Enhertu to the post-neoadjuvant setting, offering more patients the opportunity for sustained long-term outcomes and a potential path to cure.”
AstraZeneca PLC is a global, science-led biopharmaceutical company focused on the discovery, development, and commercialization of prescription medicines. It specializes in treating major diseases across oncology, cardiovascular, renal, metabolism, respiratory, and immunology areas, generating billions in revenue from these therapeutic, life-changing medicines.
7. Boston Scientific Corp. (NYSE:BSX)
Goldman Sachs Equity Stake: $1.57 Billion
Boston Scientific Corp (NYSE:BSX) is one of Goldman Sachs top healthcare stocks. On March 4, TD Cowen reiterated that Boston Scientific Corp stock’s year-to-date decline appears overdone in the market. The stance follows a fireside chat with the company, whereby management affirmed confidence in achieving overall guidance.
The company also reiterated its positive outlook for its pulsed-field ablation and Watchman products. The company delivering on its guidance is expected to ease investor concern and trigger a stock recovery. Boston Scientific has already delivered 19.9% revenue growth over the past 12 months, affirming operational momentum despite recent headwinds.
Amid the positive outlook, TD Cowen has reiterated a Buy rating on Boston Scientific (BSX) with a $100 price target. The bullish outlook comes on the heels of the company delivering solid fourth-quarter and full-year 2025 earnings. Revenue in the quarter rose 15.9% year over year as adjusted earnings per share totaled $0.80, above the consensus estimate of $0.78 and guidance of $0.79.
Boston Scientific Corp. is a global medical technology leader that develops, manufactures, and markets less-invasive medical devices used in interventional specialties, including cardiology, peripheral interventions, electrophysiology, endoscopy, and urology. Their products, such as stents, pacemakers, and imaging systems, are used by healthcare professionals worldwide to diagnose and treat various diseases.
6. Thermo Fisher Scientific Inc. (NYSE:TMO)
Goldman Sachs Equity Stake: $1.77 Billion
Thermo Fisher Scientific Inc. (NYSE:TMO) is one of Goldman Sachs top healthcare stocks. On March 3 at the 47th Annual Raymond James Institutional Investor Conference, CEO Marc Casper outlined a strong strategic outlook for Thermo Fisher Scientific Inc. and future growth prospects.
The executive reiterated that the company is well-positioned to achieve 3% to 4% growth in 2026, given its robust market position. The company delivered 2% organic growth last year and is targeting a long‑term expansion rate of 5% to 6%. The robust growth will come as the company increasingly leverages AI to enhance operations and capitalize on market opportunities. In addition, there is increased focus on capital deployments towards mergers and acquisitions to strengthen the core business.
Thermo Fisher Scientific is in the process of completing the Olink acquisition, which is expected to enhance its endpoint solution capabilities. It’s also targeting other acquisitions with the aim of delivering high value to customers and strong returns.
Thermo Fisher Scientific Inc. is the world leader in serving science, providing over 2 million products and services for pharmaceutical development, biotechnology research, clinical diagnostics, and laboratory management. It supplies instruments, consumables, and software to accelerate research, enhance diagnostics, and manufacture medicines.
5. Abbott Laboratories (NYSE:ABT)
Goldman Sachs Equity Stake: $1.93 Billion
Abbott Laboratories (NYSE:ABT) is one of Goldman Sachs top healthcare stocks. On March 10, Abbott Laboratories confirmed the launch of its most advanced generation stent, XIENCE Skypoint, in India. The launch is designed to equip doctors in the country with stents that can reach difficult areas and treat a wide range of blockages.
XIENCE Skypoint stents are more flexible and easier to guide through heart arteries, including large vessels. Expected to be of great benefit to doctors treating cardiovascular diseases, the stents are also suited for treating complex heart blockages.
XIENCE Skypoint stands out for its slim, smooth delivery system, which helps doctors guide the stent through the vessel. It also includes a left main indication that helps doctors treat critical segments of the coronary artery.
Abbott is to offer the broadest matrix ever from the XIENCE family to support the treatment of long lesions. It will also help reduce the number of stents required per procedure. The ultimate goal is to offer doctors more options and patients greater confidence to support long-term heart health.
Abbott Laboratories is a diversified global healthcare company that develops, manufactures, and markets products across four core segments: medical devices, diagnostics, branded generic pharmaceuticals, and nutritional products for all ages.
4. Merck & Co., Inc. (NYSE:MRK)
Goldman Sachs Equity Stake: $2.03 Billion
Merck & Co., Inc. is one of Goldman Sachs top healthcare stocks. On March 3 at the TD Cowen 46th Annual Health Care Conference, Merck & Co., Inc. unveiled strategic initiatives to mitigate the loss of exclusivity of its blockbuster drug, KEYTRUDA. The company expects a shallow dip in revenues from the flagship drug as its exclusivity ends.
The strategic initiatives focus on innovation to transform the current portfolio through new products. The company is already expanding its oncology pipeline while also exploring new treatment options in cardiovascular and other therapeutic areas. Some of the new products slated for launch include WINREVAIR, OHTUVAYRE, CAPVAXIVE, INFLUENZA, and QULEX.
MK-1406 clinical trials for influenza prevention are ongoing in the Southern Hemisphere, while V940, a neoantigen therapy, is under development, with a melanoma readout expected in 2028. It is also working on MK-3000, which targets patients with diabetic macular edema and neovascular AMD.
Merck is also developing over 20 new growth drivers in the human health business as it targets $70 billion in commercial opportunity. The company is also pursuing strategic business development to double animal health revenue by mid-2030.
Merck & Co., Inc. is a leading, research-intensive global biopharmaceutical company that discovers, develops, and manufactures prescription medicines, vaccines, and biologic therapies. It specializes in human health—particularly oncology, infectious diseases, and immunology—while also providing animal health products.
3. AbbVie Inc. (NYSE:ABBV)
Goldman Sachs Equity Stake: $2.96 Billion
AbbVie Inc. (NYSE:ABBV) is one of Goldman Sachs top healthcare stocks. On March 9, William Blair reiterated an Outperform rating on AbbVie Inc.. The research firm remains confident about the company’s prospects following positive clinical trial results on a crucial obesity treatment.
The company announced top-line results from the Phase 1 multiple-ascending-dose study of ABBV-295. It is trialing the candidate long-acting amylin analog in the treatment of obesity. The results showed a 10% weight loss after 12 weeks in patients treated with the drug. The topline result is competitive across the amylin class at a time when the company is increasingly expanding its pipeline beyond oncology drugs.
Analysts at BMO have also touted the positive outlook for obesity drugs, which are expected to strengthen and diversify the company’s portfolio. The company has already announced a $380 million investment as it seeks to expand its manufacturing facilities while focusing on neuroscience and obesity drugs.
AbbVie has also delivered topline results from the Phase 3 AFFIRM study of Skyrizi for Crohn’s disease. The results also showed significant improvements in clinical remission and endoscopic response compared to Placebo.
AbbVie Inc. is a global research-driven biopharmaceutical company that discovers, develops, and markets advanced therapies for complex, serious health conditions. It focuses on immunology, oncology, neuroscience, eye care, and aesthetics.
2. Johnson & Johnson (NYSE:JNJ)
Goldman Sachs Equity Stake: $3.38 Billion
Johnson & Johnson is one of Goldman Sachs top healthcare stocks. On March 10, Johnson & Johnson announced the submission of a Type II variation application to the European Medicines Agency. The company is seeking approval of TECVAYLI (teclistamab) as a potential treatment for relapsed and refractory multiple Myeloma.
The company hopes to make TECVAYLI available at a time when patients with multiple myeloma continue to relapse. It hopes the drug will be approved as a potential treatment to improve long-term outcomes and change the course of the disease. The submission is supported by data from the Phase 3 MajesTEC-9 trial, which showed that the safety profile of teclistamab monotherapy was clinically manageable.
The submission follows the European Commission approving an indication extension for AKEEGA in combination with androgen deprivation therapy for the treatment of metastatic hormone-sensitive prostate cancer. The approval introduces a new precision-based treatment option for patients expected to have the greatest impact in helping change the trajectory of the disease.
“This expanded indication for niraparib and abiraterone acetate reflects our commitment to delivering transformative innovation across the prostate cancer continuum,” said Charles Drake, M.D., Ph.D., FAAP, Vice President, Prostate Cancer and Immunotherapy Disease Area Leader, Johnson & Johnson.
Johnson & Johnson is a diversified global healthcare company that develops, manufactures, and sells products in two primary segments: Innovative Medicine (pharmaceuticals) and MedTech (medical devices).
1. Eli Lilly and Company (NYSE:LLY)
Goldman Sachs Equity Stake: $6.38 Billion
Eli Lilly and Company (NYSE:LLY) is one of Goldman Sachs top healthcare stocks. On March 10, analysts at Bernstein SocGen reiterated an Outperform rating on Eli Lilly with a $1,300 price target. The positive stance comes on the heels of the company launching the Employer Connect platform to enhance access to its obesity medications through employer-sponsored programs.
The company has already partnered with 15 program administrators, including GoodRx and Mark Cuban’s Cost Plus Drugs, to enable employers to activate the GLP-1 coverage insurance platform for their staff. The unveiling of the new platform is part of an effort to capitalize on limited commercial insurance coverage. The new platform will expand GLP-1 coverage by enabling employers to customize coverage and wraparound services for employees. It also provides a way to share costs and lower employer expenses.
The launch of the new platform follows Mounjaro’s prescription reaching 724,500 and 361,000 new prescriptions for the week ending February 27, affirming strong interest in the company’s GLP-1 medications.
Eli Lilly and Company is a global healthcare company that discovers, develops, manufactures, and markets human pharmaceutical products, focusing on areas like diabetes, obesity, oncology, and immunology.
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