In this article, we will look at the Top 15 Low Volatility Healthcare Stocks to Buy Now.
On July 21, Dr. Warris Bokhari, Claimable CEO and co-founder, appeared on CNBC’s ‘Squawk Box’ to talk about the use of AI to appeal health care insurance denials, and more.
A majority of Americans have experienced the frustration of getting a healthcare insurance denial, often times finding no solution despite emails with service providers and phone calls with carriers. Dr. Bokhari runs a platform that can change that, as it uses AI to appeal denials for care to treat around 70 autoimmune conditions, including Crohn’s disease and others.
READ ALSO: 10 Best Strong Buy Healthcare Stocks to Buy Now and 11 Best Shipping and Container Stocks to Invest in Now.
Patients fill out a form, after which AI handles the next processes, scanning healthcare plans and relevant state and federal laws.
Dr. Bokhari stated that the platform’s inception came from a decade long observation of one of America’s unique problems, as there are around 850 million denials every year, and only around 1% of them are ever appealed. These statistics translate to around 70-90 million Americans every year who struggle with insurance issues such as denials.
Launched on October 2, 2024, in the US only, the platform helps patients appeal care denials for 70 autoimmune diseases, using AI to generate appeal letters based on healthcare plans.
With these trends in view, lets look at the 15 low volatility healthcare stocks to buy now.
A healthcare professional wearing a lab coat, holding a vial of medication.
Our Methodology
We used Finviz to compile a list of healthcare stocks with a beta below 1 and selected the top 15 with the highest number of hedge fund holders as of Q1 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Note: All data was recorded on July 24.
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).
Top 15 Low Volatility Healthcare Stocks to Buy Now
15. Novo Nordisk A/S (NYSE:NVO)
Beta: 0.22
Number of Hedge Fund Holders: 60
Novo Nordisk A/S (NYSE:NVO) is one of the top low volatility healthcare stocks to buy now. In a report released on July 17, David Evans from Kepler Capital maintained a Buy rating on Novo Nordisk A/S (NYSE:NVO) with a price target of DKK630.00.
Novo Nordisk A/S (NYSE:NVO) reported a 22% growth in operating profit in Danish kroner and 20% at constant exchange rates (CER) to DKK 38.8 billion in the first three months of 2025.
Sales in US Operations rose by 20% in Danish kroner and 17% at CER, while sales in International Operations grew by 18% in Danish kroner and 19% at CER in the same period.
Novo Nordisk A/S (NYSE:NVO) also experienced a 21% growth in Danish kroner in sales within Diabetes and Obesity care, primarily attributed to the Obesity care growth of 67% in Danish kroner to DKK 18.4 billion and GLP-1 diabetes sales growth of 13% in Danish kroner.
Novo Nordisk A/S (NYSE:NVO) is a global healthcare company specializing in diabetes care. It develops, discovers, manufactures, and markets pharmaceutical products.
Its operations are divided into two business segments: biopharmaceuticals and diabetes and obesity care. The latter segment covers GLP-1, insulin, and other protein-related products.
14. Stryker Corporation (NYSE:SYK)
Beta: 0.92
Number of Hedge Fund Holders: 61
Stryker Corporation (NYSE:SYK) is one of the top low volatility healthcare stocks to buy now. In a report released on July 20, Josh Jennings from TD Cowen maintained a Buy rating on Stryker Corporation (NYSE:SYK) with a price target of $435.00.
The analyst based the optimistic rating on the company’s strong performance in recent quarters and the anticipation of continued momentum.
Jennings stated that Stryker Corporation (NYSE:SYK) has consistently experienced robust growth, reporting a notable 10% organic growth in Q1, which translates to around 11.1% when adjusted for a selling day headwind.
He further stated that Stryker Corporation (NYSE:SYK) is positioned against one of its easier comparisons from 2024 despite an expected slowdown in growth to 8.8% for Q2.
According to Jennings, the company has historically achieved double-digit growth even in the backdrop of challenging benchmarks, suggesting that the present market estimates are well-founded.
Stryker Corporation (NYSE:SYK) is a medical technology company that offers products and services in Neurotechnology, Medical and Surgical, and Orthopedics and Spine. It operates through the MedSurg and Neurotechnology and the Orthopedics and Spine segments.
The company’s medical devices and products include surgical navigation systems, surgical equipment, emergency medical equipment, endoscopic and communications systems, neurosurgical and neurovascular devices, Mako Robotic-Arm Assisted technology, and several other products. Stryker Corporation (NYSE:SYK) holds around 13,000 global patents to shield its products from replication.
13. Medtronic plc (NYSE:MDT)
Beta: 0.82
Number of Hedge Fund Holders: 63
Medtronic plc (NYSE:MDT) is one of the top low volatility healthcare stocks to buy now. On July 16, Mizuho raised the firm’s price target on Medtronic plc (NYSE:MDT) to $100 from $98 while keeping an Outperform rating on the shares.
The firm told investors that it adjusted its price targets in the medical devices and diagnostics segment before the Q2 earnings reports.
Medtronic plc (NYSE:MDT) reported results for its fourth quarter and fiscal year 2025, which ended April 25, on May 21. It reported a FY25 revenue of $33.5 billion and adjusted revenue of $33.6 billion, reflecting a 3.6% growth as reported and 4.9% organic.
GAAP diluted EPS for FY25 also rose 31% to $3.61, while non-GAAP diluted EPS increased 6% to $5.49.
Medtronic plc (NYSE:MDT) is a medical technology company that manufactures, distributes, and sells device-based medical services and therapies.
It operates under four primary segments: Cardiovascular Portfolio, Neuroscience Portfolio, Medical Surgical Portfolio, and Diabetes Operating Unit.
12. Bristol-Myers Squibb Company (NYSE:BMY)
Beta: 0.37
Number of Hedge Fund Holders: 69
Bristol-Myers Squibb Company (NYSE:BMY) is one of the top low volatility healthcare stocks to buy now. On July 24, Goldman Sachs analyst Asad Haider maintained a Hold rating on Bristol-Myers Squibb Company (NYSE:BMY) with a $56.00 price target, basing the rating on the company’s current market position.
Haider stated that Bristol-Myers Squibb Company (NYSE:BMY) is anticipated to release mixed results for the upcoming quarter. While foreign exchange rates may have some positive impact on the earnings, potential negative effects from recent deals not fully accounted for in current earnings projections, and challenges at the product level are cause for concern.
The analyst further said that Bristol-Myers Squibb Company’s (NYSE:BMY) stock has remained stable within a narrow range despite it trading at a lower multiple compared to its peers and prior strong quarterly results.
He reasoned that this stability is partially because of investors anticipating significant clinical trial outcomes, especially the Phase-3 ADEPT-2 trial for Cobenfy in Alzheimer’s psychosis.
The Hold rating thus suggests the need for clarity regarding these clinical developments as they may prove critical for future stock movement.
Bristol-Myers Squibb Company (NYSE:BMY) is a biopharmaceutical company that discovers, develops, and delivers advanced medicines for serious diseases. Its medicines fall into various therapeutic classes, including hematology, oncology, cardiovascular, immunology, and neuroscience.
11. Amgen Inc. (NASDAQ:AMGN)
Beta: 0.48
Number of Hedge Fund Holders: 69
Amgen Inc. (NASDAQ:AMGN) is one of the top low volatility healthcare stocks to buy now. On July 23, BofA analyst Tim Anderson reiterated a Sell rating on Amgen Inc. (NASDAQ:AMGN) with a $261.00 price target.
Anderson reasoned that Amgen Inc. (NASDAQ:AMGN) stock is trading at a premium in comparison to its peers despite the modest growth in revenue and EPS estimates for the coming years, which shows that the market may have already priced in these improvements.
He supported the cautious outlook with the higher expected R&D expenses and policy uncertainties, even in the backdrop of positive developments such as FX adjustments and script trends for key products.
Anderson believes that while the future growth is positive, it is expected to be average, which fails to justify the current premium valuation.
Amgen Inc. (NASDAQ:AMGN) is a biotechnology company that discovers, develops, manufactures, and markets human therapeutics. It delivers new therapies for patients with complex cancers, especially in areas with significant unmet needs.
10. Abbott Laboratories (NYSE:ABT)
Beta: 0.73
Number of Hedge Fund Holders: 70
Abbott Laboratories (NYSE:ABT) is one of the top low volatility healthcare stocks to buy now. Analyst Mike Kratky from Leerink Partners reiterated a Hold rating on Abbott Laboratories (NYSE:ABT) on July 21, decreasing the price target to $136.00 from $143.00.
The analyst justified the Hold rating with the company’s performance, stating that Abbott Laboratories’ (NYSE:ABT) recent Q2 earnings report presented a mixed picture.
Management slashed their organic sales growth guidance, attributed primarily to several headwinds collectively affecting the Diagnostics segment outlook. These include changes in HIV funding, disruptions from value-based purchasing (VBP) in China, and weaker-than-expected COVID-19 sales.
Kratky also stated that positive aspects for Abbott Laboratories (NYSE:ABT) exist amid these challenges, especially in the company’s MedTech segment, which delivered solid growth. The non-MedTech segments are, however, continually facing complications, warranting a cautious outlook as these segments contribute significantly to the company’s revenue.
Abbott Laboratories (NYSE:ABT) discovers, develops, manufactures, and sells healthcare products. Its business segments include Diagnostic Products, Established Pharmaceutical Products, Medical Devices, and Nutritional Products. The company’s Abbott Molecular is a leader in oncology molecular diagnostics with its Vysis FISH assays.
9. Gilead Sciences, Inc. (NASDAQ:GILD)
Beta: 0.31
Number of Hedge Fund Holders: 79
Gilead Sciences, Inc. (NASDAQ:GILD) is one of the top low volatility healthcare stocks to buy now. In a report released on July 21, Geoff Meacham from Citi maintained a Buy rating on Gilead Sciences, Inc. (NASDAQ:GILD) with a price target of $125.00.
On July 14, Gilead Sciences, Inc. (NASDAQ:GILD) presented new data on the twice-yearly Lenacapavir (Yeztugo®) for HIV Prevention at the IAS 2025.
The company reported that new data from the PURPOSE trials showed that Lenacapavir was well-tolerated and effective across a range of populations, including lactating and pregnant women, young people, and adolescents.
The data also showed that the twice-yearly injectable PrEP was preferred compared to daily oral medication among PURPOSE trial participants.
Gilead Sciences, Inc. (NASDAQ:GILD) is a biotech company that advances medicines to prevent and treat serious diseases such as cancer, immunodeficiency virus (HIV), viral hepatitis, and COVID-19.
Its portfolio of drugs focuses on medical areas with unmet needs and includes AmBisome, Atripla, Biktarvy, Cayston, Complera, and others. Gilead Sciences, Inc. (NASDAQ:GILD) operates in over 35 countries.
8. AbbVie Inc. (NYSE:ABBV)
Beta: 0.48
Number of Hedge Fund Holders: 86
AbbVie Inc. (NYSE:ABBV) is one of the top low volatility healthcare stocks to buy now. In a report released on July 22, Vamil Divan from Guggenheim reiterated a Buy rating on AbbVie Inc. (NYSE:ABBV) with a price target of $216.00.
AbbVie Inc. (NYSE:ABBV) reported that net revenues in Q1 reached $13.343 billion, reflecting an 8.4% growth on a reported basis or 9.8% on an operational basis.
Global net revenues for the quarter for the Immunology portfolio rose to $6.264 billion, reflecting a growth of 16.6% on a reported basis or 18.1% on an operational basis. AbbVie Inc. (NYSE:ABBV) also experienced growth in global net revenues in the Neuroscience portfolio to $2.282 billion, reflecting a 16.1% increase on a reported basis or 17% on an operational basis.
AbbVie Inc. (NYSE:ABBV) is a research-based pharmaceutical company that develops and sells products to treat chronic diseases in oncology, gastroenterology, rheumatology, dermatology, virology, and various other serious health conditions.
7. Johnson & Johnson (NYSE:JNJ)
Beta: 0.4
Number of Hedge Fund Holders: 91
Johnson & Johnson (NYSE:JNJ) is one of the top low volatility healthcare stocks to buy now. On July 17, Guggenheim raised the firm’s price target on Johnson & Johnson (NYSE:JNJ) to $167 from $164, keeping a Neutral rating on the shares.
The firm gave the price target upgrade after Johnson & Johnson (NYSE:JNJ) delivered a “strong” Q2 and gave an “encouraging outlook” for its growth prospects in the second half of the year.
Guggenheim justified a Neutral rating on the stock by stating that it is waiting for increased visibility on the emerging Innovative Medicine pipeline that will need to offset Stelara’s decline.
Johnson & Johnson (NYSE:JNJ) reported a 5.8% sales growth in Q2 2025 to $23.7 billion, with operational growth of 4.6% and adjusted operational growth of 3.0%. The company also raised its 2025 outlook, increasing full-year estimated reported sales guidance at the midpoint by $2 billion to 5.4% and full-year EPS guidance by $0.25 to $10.85.
This increase was supported by favorable foreign exchange results and strong operational performance by the company.
Johnson & Johnson (NYSE:JNJ) develops, manufactures, and sells products in the healthcare field. The company operates through two segments: Innovative Medicine and MedTech.
The MedTech segment includes an elaborate range of medical devices and products used in cardiovascular intervention, orthopedics, interventional solutions, surgery, and vision fields.
6. Merck & Co., Inc. (NYSE:MRK)
Beta: 0.4
Number of Hedge Fund Holders: 93
Merck & Co., Inc. (NYSE:MRK) is one of the top low volatility healthcare stocks to buy now. Analyst Daina Graybosch of Leerink Partners maintained a Buy rating on Merck & Co., Inc. (NYSE:MRK) on July 21, bringing the price target down to $92 from $115.
The analyst told investors that Merck & Co., Inc.’s (NYSE:MRK) focus on the expansion of its cardiopulmonary and infectious disease franchises is anticipated to boost investor sentiment, especially because these domains show considerable development potential.
Graybosch reasoned that while challenges such as the regulatory pressures on Gardasil and Keytruda exist, Merck & Co., Inc.’s (NYSE:MRK) valuation remains attractive in comparison to its peers, which shows room for optimism and appreciation.
In addition, upcoming clinical trial results may also bolster Merck & Co., Inc.’s (NYSE:MRK) long-term revenue prospects according to the analyst, including those for enlicitide and Winrevair.
Merck & Co., Inc. (NYSE:MRK) is a biopharmaceutical company that delivers health solutions to advance the treatment and prevention of diseases in animals and people.
Its Pharmaceutical segment offers vaccines and human health pharmaceutical products, typically therapeutic and preventive agents. Its Animal Health segment develops, discovers, manufactures, and markets a range of vaccines and veterinary pharmaceutical products.
5. Pfizer Inc. (NYSE:PFE)
Beta: 0.5
Number of Hedge Fund Holders: 99
Pfizer Inc. (NYSE:PFE) is one of the top low volatility healthcare stocks to buy now. On July 22, Morgan Stanley analyst Terence Flynn maintained a Hold rating on Pfizer Inc. (NYSE:PFE) and set a price target of $32.00.
One of the primary factors behind this cautious rating is the impending patent expiration for Pfizer’s Tafamidis, marketed as Vyndamax and Vyndaqel, which may result in a considerable revenue decline.
The analyst reasoned that the patent cliff, which is expected later in the decade, may lead to lost revenue of around $20 billion. The market recognizes this factor, as it is reflected in Pfizer Inc.’s (NYSE:PFE) lower P/E ratio compared to historical industry averages and the S&P 500.
Flynn further stated that while Tafamidis is a successful product with expected sales of $6.4 billion in 2025, the patent expirations in the US and EU pose a challenge to Pfizer Inc. (NYSE:PFE).
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.
4. Thermo Fisher Scientific Inc. (NYSE:TMO)
Beta: 0.77
Number of Hedge Fund Holders: 101
Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the top low volatility healthcare stocks to buy now. On July 24, Barclays analyst Luke Sergott raised the firm’s price target on Thermo Fisher Scientific Inc. (NYSE:TMO) to $490 from $450, keeping an Equal Weight rating on the shares.
The analyst told investors in a research note that Thermo Fisher Scientific Inc. (NYSE:TMO) reported a Q2 beat, with Q2 revenue rising 3% to $10.85 billion. GAAP diluted earnings per share for the quarter grew 6% to $4.28, while adjusted EPS reached $5.36.
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.
3. Boston Scientific Corporation (NYSE:BSX)
Beta: 0.68
Number of Hedge Fund Holders: 108
Boston Scientific Corporation (NYSE:BSX) is one of the top low volatility healthcare stocks to buy now. On July 24, RBC Capital raised the firm’s price target on Boston Scientific Corporation (NYSE:BSX) to $125 from $120, keeping an Outperform rating on the shares.
The analyst told investors in a research note that Boston Scientific Corporation (NYSE:BSX) reported “impressive” Q2 results, raising its 2025 revenue growth and operating margin guidance.
The firm ranks Boston Scientific Corporation (NYSE:BSX) among the highest performing MedTech large-caps.
Boston Scientific Corporation (NYSE:BSX) reported its Q2 2025 earnings on July 23, with net sales for the quarter reaching $5.061 billion, growing 22.8% on a reported basis, 21.6% on an operational basis, and 17.4% on an organic basis, compared to the prior year period.
GAAP net income attributable to Boston Scientific Corporation (NYSE:BSX) common stockholders reached $797 million or $0.53 per share, compared to $324 million or $0.22 per share a year ago.
Boston Scientific Corporation (NYSE:BSX) manufactures, develops, and markets medical devices used in interventional medical procedures. Its operations are divided into Cardiovascular and MedSurg segments.
The Cardiovascular segment covers Cardiology and Peripheral Interventions, while the MedSurg segment comprises Urology, Endoscopy, and Neuromodulation.
2. Eli Lilly and Company (NYSE:LLY)
Beta: 0.4
Number of Hedge Fund Holders: 119
Eli Lilly and Company (NYSE:LLY) is one of the top low volatility healthcare stocks to buy now. On July 10, Morgan Stanley analyst Terence Flynn maintained a Buy rating on Eli Lilly and Company (NYSE:LLY), raising the target price from $1,133 to $1,135.
On July 9, Eli Lilly and Company (NYSE:LLY) announced that the US Food and Drug Administration (FDA) approved a label update with a new recommended titration dosing schedule for Kisunla, which is the company’s once-monthly amyloid-targeting therapy for adults with early symptomatic Alzheimer’s disease (AD).
The TRAILBLAZER-ALZ 6 study showed that “the modified titration schedule significantly lowered the incidence of amyloid-related imaging abnormalities with edema/effusion (ARIA-E) versus the original dosing schedule at 24 and 52 weeks, while still achieving similar levels of amyloid plaque removal and P-tau217 reduction”.
Eli Lilly and Company (NYSE:LLY) develops, manufactures, discovers, and sells pharmaceutical products. These products span oncology, diabetes, immunology, neuroscience, and other therapies.
1. UnitedHealth Group Incorporated (NYSE:UNH)
Beta: 0.46
Number of Hedge Fund Holders: 139
UnitedHealth Group Incorporated (NYSE:UNH) is one of the top low volatility healthcare stocks to buy now. On July 24, UnitedHealth Group Incorporated (NYSE:UNH) released a statement responding to the Department of Justice after a review of the media reports about investigations into specific aspects of its involvement in the Medicare program.
UnitedHealth Group Incorporated (NYSE:UNH) stated that it has now begun complying with the formal criminal and civil requests from the Department, and has “full confidence in its practices and is committed to working cooperatively with the Department throughout this process”.
It added that UnitedHealth Group Incorporated (NYSE:UNH) has a historical record of “responsible conduct and effective compliance,” with independent CMS audits showing that its practices are ranked “among the most accurate in the industry.”
Management stated that after a decade-long civil challenge by the Department to aspects of the company’s Medicare Advantage business, “a court-appointed Special Master concluded there was no evidence to support claims of wrongdoing”.
UnitedHealth Group Incorporated (NYSE:UNH) has launched its own initiative to provide confidence and transparency to stakeholders, focusing on conducting “third-party reviews of policies, practices, and associated processes and performance metrics for risk assessment coding, managed care practices, and pharmacy services.”
UnitedHealth Group Incorporated (NYSE:UNH) provides healthcare coverage, data consultancy, and software services. It operates through the OptumRx, OptumInsight, OptumHealth, and UnitedHealthCare segments, which have solid operations.
While we acknowledge the potential of UNH 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 UNH and that has 100x upside potential, check out our report about this cheapest AI stock.
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