After lagging behind the broader market in 2024, many healthcare stocks are making a comeback this year. Healthcare spending has been continuously soaring and is projected to do so in the coming years due to demographic tailwinds. The industry now accounts for a fifth of the U.S. economy, and it’s a good idea to have exposure to it.
Most executives now hold a favorable view of the industry’s prospects, a notable increase from 52% just a year ago. Moreover, it’s an industry that is more insulated from tariffs and macro risks.
Of course, the top gainers here are not defensive healthcare stocks, but it’s still worth looking into the winners here if you are chasing potential multibaggers.
Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified 15 Energy Stocks that are Up the Most in 2025 in another article.
A robotic arm picking up a product assembly line, displaying the company’s consumer healthcare and wellness offerings.
Methodology
For this article, I screened the best-performing healthcare stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. 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).
15. Journey Medical Corp (NASDAQ:DERM)
Number of Hedge Fund Holders In Q4 2024: 3
Journey Medical Corp (NASDAQ:DERM) is a commercial-stage pharmaceutical company that identifies, acquires, and commercializes innovative dermatology products.
The most significant driver of the stock’s surge in 2025 has been the U.S. Food and Drug Administration approval and commercial launch of Emrosi, a 40 mg minocycline hydrochloride modified-release capsule for the treatment of rosacea.
The FDA approved Emrosi in November 2024, ahead of the scheduled PDUFA date, and the company began initial distribution with the first prescriptions filled shortly after. Full-scale promotion of Emrosi started in April 2025, and the Phase 3 clinical trial results, published in JAMA Dermatology in March, demonstrated a best-in-class safety and efficacy profile with all endpoints met and no significant safety issues.
Investors responded positively to Emrosi’s commercial rollout and the company’s strong financial performance, which included meeting all 2024 guidance and reporting $56.1 million in revenue for the year.
The consensus price target of $9.88 implies 32.2% upside.
DERM stock is up 91.05% year-to-date.
14. Nuvectis Pharma Inc (NASDAQ:NVCT)
Number of Hedge Fund Holders In Q4 2024: 5
Nuvectis Pharma Inc (NASDAQ:NVCT) is a clinical-stage biopharmaceutical company developing precision medicines for oncology, with lead candidates NXP800 for ARID1a-mutated ovarian cancer and NXP900, a first-in-class SRC/YES1 kinase inhibitor for solid tumors.
The main catalyst behind the stock’s sharp rise in 2025 has been investor enthusiasm around upcoming and ongoing presentations of NXP900 at the 2025 American Association for Cancer Research Meeting, scheduled for late April. Shares soared 5.28% on April 24, 2025, capping a three-day run with a cumulative gain of 31.41%, as anticipation built for the conference presentations detailing first-in-human clinical data for NXP900 in advanced solid tumors and its potential to overcome resistance in non-small cell lung cancer.
Earlier in the year, Nuvectis completed a $15.5 million public offering in February to fund continued development of NXP800 and NXP900, which further strengthened its balance sheet and positioned the company for key 2025 milestones.
The consensus price target of $15.67 implies 49.35% upside.
NVCT stock is up 93.90% year-to-date.
13. Monopar Therapeutics Inc (NASDAQ:MNPR)
Number of Hedge Fund Holders In Q4 2024: 5
Monopar Therapeutics Inc (NASDAQ:MNPR) is a clinical-stage biopharmaceutical company developing novel radiopharmaceuticals for oncology and a late-stage treatment for Wilson disease called ALXN1840.
The stock’s strong move in 2025 has been propelled by a series of material events, starting with the in-licensing of ALXN1840 from Alexion, AstraZeneca Rare Disease in October 2024.
This deal included a $4 million upfront payment, equity issuance, and future milestone and royalty payments, giving Monopar exclusive global rights to a Phase 3-ready asset that met its primary endpoint for Wilson disease.
In the fourth quarter of 2024 and into early 2025, Monopar strengthened its financial position by raising over $55 million through public offerings and private placements, with a notable $19.2 million offering priced at $16.25 per share in March 2025. The company also initiated two first-in-human Phase 1 clinical trials for its radiopharmaceutical pipeline targeting advanced cancers, and announced plans to submit a New Drug Application for ALXN1840 in early 2026.
These developments, particularly the ALXN1840 licensing and the capital raises, led to substantial upward moves in the stock price.
The consensus price target of $55.33 implies 29.56% upside.
MNPR stock is up 94.14% year-to-date.
12. Tiziana Life Sciences Ltd (NASDAQ:TLSA)
Number of Hedge Fund Holders In Q4 2024: N/A
Tiziana Life Sciences Ltd (NASDAQ:TLSA) is a clinical-stage biotechnology company developing innovative immunotherapies for neurodegenerative and neuroinflammatory diseases, with a lead focus on its fully human anti-CD3 monoclonal antibody, Foralumab, for conditions such as secondary progressive multiple sclerosis, Alzheimer’s disease, and ALS.
The stock has surged in 2025, primarily due to significant progress in clinical development and strategic updates. The most notable catalyst was the announcement that Tiziana would begin a Phase 2 clinical trial of intranasal Foralumab for mild Alzheimer’s disease in the first half of 2025, following successful IND submissions and expanded access programs for both Alzheimer’s and non-active secondary progressive multiple sclerosis.
In December 2024, the company began dosing patients with moderate Alzheimer’s under an expanded access program, which further fueled investor optimism. Additionally, Tiziana received a grant from the ALS Association to support a Phase 2 clinical trial in ALS.
TLSA stock is up 95.35% year-to-date.
11. Agilon Health Inc (NYSE:AGL)
Number of Hedge Fund Holders In Q4 2024: 20
Agilon Health Inc (NYSE:AGL) partners with independent primary care physicians to deliver value-based care for seniors. It uses a platform that integrates technology, capital, and network support to transform healthcare delivery.
The stock is up significantly so far in 2025 due to the company’s strong fourth quarter and full-year 2024 results, where revenue rose 44% to $1.52 billion and Medicare Advantage membership increased 36% to 527,000.
Management’s guidance for 2025 further boosted confidence, as they projected continued membership growth. The market has also responded to Agilon’s ability to scale its model across 30 communities and its resilient performance amid broader healthcare volatility. Investors have been attracted to the company’s capitation-based business model, which allows for more predictable revenue and aligns incentives for quality care, although some analysts caution about ongoing profitability challenges.
The consensus price target of $4.81 implies 23.69% upside.
AGL stock is up 105.26% year-to-date.
10. GRAIL Inc (NASDAQ:GRAL)
Number of Hedge Fund Holders In Q4 2024: 28
GRAIL Inc (NASDAQ:GRAL) is a biotechnology company focused on early cancer detection through its Galleri multi-cancer early detection blood test, which uses next-generation sequencing and machine learning to identify cancer signals from a simple blood draw.
The stock has soared in 2025, with the most significant boost coming after the announcement that TRICARE, one of the largest US health plans, would cover the Galleri test for adults over 50 at elevated cancer risk.
This coverage decision dramatically expanded the test’s addressable market and validated GRAIL’s commercial strategy, leading to a sharp increase in investor interest. GRAIL also reported strong financial results, with 2024 revenue up 35% year-over-year to $125.6 million and Galleri test revenue up 45% to $108.6 million.
In February 2025, GRAIL announced a partnership with Quest Diagnostics to integrate Galleri into Quest’s national test ordering system, further expanding access and distribution. The company completed major registrational studies in July 2024 and plans to submit for FDA approval in 2026.
The consensus price target of $26 implies 30.1% downside.
GRAL stock is up 108.40% year-to-date.
9. Palvella Therapeutics Inc (NASDAQ:PVLA)
Number of Hedge Fund Holders In Q4 2024: 9
Palvella Therapeutics Inc (NASDAQ:PVLA) is a clinical-stage biopharmaceutical company developing and commercializing novel therapies for serious, rare genetic skin diseases that currently have no FDA-approved treatments.
The stock is up significantly so far in 2025 due to the February 2025 announcement that Palvella expanded its Phase 3 SELVA trial of QTORIN rapamycin to include younger patients aged 3 to 5 years, which broadened the potential patient population and increased investor optimism.
Earlier, Palvella reported exceptionally positive results from its Phase 2 trial of QTORIN rapamycin for microcystic lymphatic malformations, where 100% of participants were rated as “Much” or “Very Much” improved by clinicians, fueling further enthusiasm.
In March 2025, the company completed a merger and a $78.9 million private placement, which strengthened its balance sheet and enabled rapid advancement of its clinical pipeline. The company also initiated a Phase 2 trial (TOIVA) for QTORIN rapamycin in cutaneous venous malformations, with top-line results expected by late 2025.
The consensus price target of $44.43 implies 74.96% upside.
PVLA stock is up 111.58% year-to-date.
8. Chimerix Inc (NASDAQ:CMRX)
Number of Hedge Fund Holders In Q4 2024: 17
Chimerix Inc (NASDAQ:CMRX) is a biopharmaceutical company focused on developing medicines for deadly diseases, with its lead candidate dordaviprone targeting recurrent H3 K27M-mutant diffuse glioma, a rare brain cancer.
The stock’s dramatic rise in 2025, at one point up nearly 70% in a single day, was primarily triggered by two major events.
The first was the March 2025 announcement that the FDA accepted Chimerix’s New Drug Application for dordaviprone and granted it Priority Review, with a Prescription Drug User Fee Act (PDUFA) decision date set for August 18, 2025.
The second, and even more significant, event was the March 5, 2025 announcement that Jazz Pharmaceuticals would acquire Chimerix for $8.55 per share in cash, valuing the deal at about $935 million. This acquisition news caused Chimerix shares to surge.
The consensus price target of $8.53 implies 0.08% downside.
CMRX stock is up 145.40% year-to-date.
7. 908 Devices Inc (NASDAQ:MASS)
Number of Hedge Fund Holders In Q4 2024: 9
908 Devices Inc (NASDAQ:MASS) creates handheld and desktop devices for chemical analysis, focusing on applications in forensics, drug detection, and public safety.
The most important catalyst was the March 2025 announcement of a strategic transformation, where 908 Devices divested its desktop bioprocessing portfolio to Repligen for $70 million.
This move sharpened the company’s focus on its higher-growth handheld market and nearly doubled its cash reserves. The company also completed the acquisition of RedWave Technology in April 2024, and integrated FTIR products to strengthen its analytical device portfolio, and reported a 19% year-over-year revenue increase for 2024, with fourth quarter revenue up 31%.
Management raised its 2025 outlook, projecting 11% to 15% revenue growth and forecasting positive adjusted EBITDA by the end of 2025, with cash flow positivity expected in 2026. In April 2025, 908 Devices received a $2 million order from the Texas Department of Public Safety for drug detection tools.
The consensus price target of $5.33 implies 1.42% downside.
MASS stock is up 145.91% year-to-date.
6. DBV Technologies SA (NASDAQ:DBVT)
Number of Hedge Fund Holders In Q4 2024: 5
DBV Technologies SA (NASDAQ:DBVT) is a clinical-stage biopharmaceutical company developing non-invasive, self-administered therapies for food allergies, most notably the Viaskin Peanut Patch for children.
The stock is up significantly so far in 2025 as the company announced a pivotal agreement with the FDA. The FDA accepted positive safety data from the VITESSE Phase 3 study and allowed DBV to bypass an additional COMFORT trial, fast-tracking its Biologics License Application for the Viaskin Peanut Patch. This outcome could accelerate the product’s market release by up to a year and significantly de-risk the regulatory path.
On the same day, DBV Technologies also secured up to $306.9 million in new financing, with $125.5 million received immediately and the remainder contingent on warrant exercises. This capital infusion was earmarked to support the Viaskin Peanut program, regulatory submissions, and potential commercialization, but it came with the caveat of significant dilution for existing shareholders.
The consensus price target of $22.5 implies 163.77% upside.
DBVT stock is up 176.05% year-to-date.
5. Neuronetics Inc (NASDAQ:STIM)
Number of Hedge Fund Holders In Q4 2024: 5
Neuronetics Inc (NASDAQ:STIM) is a medical device company that manufactures and markets NeuroStar Advanced Therapy, a leading transcranial magnetic stimulation (TMS) system for treating major depressive disorder and other mental health conditions.
The stock’s strong performance in early 2025 was driven by several transformative developments. The most impactful was the completion of its acquisition of Greenbrook TMS in December 2024. This deal combined Neuronetics’ technology with Greenbrook’s network of over 95 clinics, creating a vertically integrated leader in mental health therapy delivery and unlocking over $22 million in annualized cost synergies.
Neuronetics also reported preliminary full-year 2024 revenue of $74.5 million, with pro forma revenue (including Greenbrook) at $129.8 million. The company issued 2025 guidance for 12% to 19% year-over-year revenue growth and projected cash flow breakeven by the third quarter of 2025.
Another major catalyst was the FDA’s clearance in March 2024 for NeuroStar as a first-line add-on treatment for adolescent depression, expanding the addressable market by 35% and supporting future growth.
The consensus price target of $5.5 implies 22.77% upside.
STIM stock is up 178.26% year-to-date.
4. Nutex Health Inc (NASDAQ:NUTX)
Number of Hedge Fund Holders In Q4 2024: 6
Nutex Health Inc (NASDAQ:NUTX) is a physician-led healthcare services company operating micro-hospitals, population health management, and real estate segments across the United States.
The stock is up significantly so far in 2025 after the fourth-quarter and full-year 2024 earnings report, released in late March 2025, which showed total revenue nearly doubling to $479.9 million and net income swinging to $52.2 million from a $45.8 million loss the prior year. Adjusted EBITDA jumped over 1,000% to $123.7 million, and the hospital division saw visits rise by 17%.
A key driver behind this explosive growth was Nutex’s strategic shift in mid-2024 to aggressively pursue arbitration under the No Surprises Act for out-of-network claims. This resulted in much higher reimbursement rates per visit and an over 80% success rate in claims.
The consensus price target of $80 implies 35.24% downside.
NUTX stock is up 289.84% year-to-date.
3. Regencell Bioscience Holdings Ltd (NASDAQ:RGC)
Number of Hedge Fund Holders In Q4 2024: N/A
Regencell Bioscience Holdings Ltd (NASDAQ:RGC) is an early-stage bioscience company focused on the research, development, and commercialization of traditional Chinese medicine formulas for neurocognitive disorders like ADHD and autism spectrum disorder, as well as infectious diseases affecting the immune system.
The stock has surged dramatically in 2025, with the most significant catalyst being the announcement of promising clinical trial results for its herbal formula targeting ADHD and ASD in Malaysia. However, this is from an unreliable source. It is more likely that the surge is due to technical reasons.
RGC stock is up 487.25% year-to-date.
2. X4 Pharmaceuticals Inc (NASDAQ:XFOR)
Number of Hedge Fund Holders In Q4 2024: 8
X4 Pharmaceuticals Inc (NASDAQ:XFOR) is a clinical-stage biopharmaceutical company developing novel therapies that improve immune cell trafficking, with a focus on rare diseases such as WHIM syndrome and chronic neutropenic disorders.
The stock is up significantly so far in 2025 as the company’s lead product, XOLREMDI (mavorixafor), is an oral CXCR4 antagonist that received U.S. approval in 2024 and is now being marketed for WHIM syndrome.
This marked X4’s transition to a fully integrated commercial company. The most impactful event for the stock in 2025 has been the continued commercial rollout of XOLREMDI, the initiation and expansion of the global Phase 3 4WARD trial for chronic neutropenia, and the anticipation of potential European approval.
On April 24, 2025, X4 announced a reverse stock split to address Nasdaq’s minimum bid price requirement, which is intended to stabilize and potentially boost the share price. The company reported $2.6 million in net revenues from XOLREMDI since its May 2024 launch and expects a significant ramp-up in 2025 as physician outreach increases. The stock has since experienced high volatility.
The consensus price target of $85 implies significant upside from the current price.
XFOR stock is up 676.99% year-to-date.
1. The Oncology Institute Inc (NASDAQ:TOI)
Number of Hedge Fund Holders In Q4 2024: 11
The Oncology Institute Inc (NASDAQ:TOI) provides value-based, community-focused cancer care, offering clinical trials, transfusions, and state-of-the-art treatments to over 1.8 million patients across more than 70 clinics.
The most significant driver of TOI’s stock surge in 2025 was the announcement on March 24 of a $16.5 million private placement, which included participation from both existing investors and company insiders.
Another key catalyst was the April 22 announcement of an expanded research partnership with Helios Clinical Research.
TOI stock is up 971.20% year-to-date.
While we acknowledge the potential of TOI, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TOI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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