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10 Best Healthcare and Insurance Stocks To Buy Following the 2026 Democratic Midterm Sweep

Democratic victories in both chambers of Congress have lifted hopes of relief for health insurers and hospital operators, putting renewed attention on healthcare stocks favored by hedge funds.

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Healthcare stocks emerged as some of the clearest beneficiaries of the Democrats’ sweeping victory in the November 3 midterm elections, as investors reassessed the outlook for federal healthcare spending. With Democrats gaining control of both the House and Senate, expectations of potential changes to Medicaid funding and Affordable Care Act subsidies helped fuel a rally in health insurance and hospital stocks.

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The immediate reaction was particularly pronounced among companies serving government-funded health programs. According to Reuters, Centene Corporation climbed more than 8% in early trading on November 4, while Molina Healthcare, Inc. gained approximately 6%. Hospital operators, including Universal Health Services, Inc., HCA Healthcare, Inc., and Tenet Healthcare Corporation, advanced between 6% and 8%.

The rally reflects expectations that a Democratic-controlled Congress could seek to delay provisions of President Donald Trump’s 2025 tax and spending legislation that are expected to reduce Medicaid enrollment and constrain certain payments to hospitals. Investors are also weighing the possibility of restoring enhanced Affordable Care Act subsidies, which expired at the beginning of 2026 and contributed to higher insurance costs and declining enrollment. For more insight into the sector, access our meticulously curated list of the 10 Best Healthcare Stocks to Buy According to Hedge Funds for free here.

However, the market’s response should not be mistaken for an immediate change in healthcare policy. As Reuters reported on November 4, JPMorgan analysts cautioned that President Trump’s veto power could limit the scope of legislative changes, potentially producing “legislative gridlock” rather than sweeping reforms. The financial implications also differ across the sector, as health insurers and hospitals are more directly exposed to federal coverage decisions, while pharmaceutical manufacturers, medical-device companies, and life-science suppliers operate under different commercial and regulatory pressures.

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Against this backdrop, we examine ten healthcare and insurance stocks to buy after the 2026 democratic midterm sweep, focusing on their operating performance, financial strengths, and company-specific challenges.

Our Methodology

To compile our list of the 10 Best Healthcare and Insurance Stocks To Buy Following the 2026 Democratic Midterm Sweep, we selected the top ten healthcare-sector companies with the highest hedge fund ownership, taking the data from Insider Monkey’s extensive database. The stocks are ranked in ascending order of the number of hedge funds holding stakes in them.

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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 612% since May 2014, beating its benchmark by 375 percentage points (see more details here).

10 Best Healthcare and Insurance Stocks To Buy Following the 2026 Democratic Midterm Sweep

10. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 88

AbbVie Inc. (NYSE:ABBV) has demonstrated that it can expand its pharmaceutical business despite the continuing erosion of sales from Humira, its former flagship immunology treatment. Its newer medicines, particularly Skyrizi and Rinvoq, have become increasingly important to the company’s financial performance.

The strength of this transition was evident in AbbVie’s third-quarter 2026 results. Revenue increased 10.3% year over year to $17.404 billion, supported by 16.3% growth in its immunology portfolio. Skyrizi generated $5.776 billion in global net revenue, while Rinvoq contributed $2.706 billion. Meanwhile, Humira revenue declined 31.2% to $683 million.

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The contrasting performance of these products illustrates how AbbVie has been replacing revenue lost to competition from Humira biosimilars. The company has also expanded its pipeline through the acquisition of Apogee Therapeutics, strengthening its exposure to immunology.

However, AbbVie’s growth is not uniform across its portfolio. Revenue from oncology increased only 0.8%, while aesthetics revenue declined 1.4% on a reported basis. For investors, the continued expansion of Skyrizi and Rinvoq supports the company’s transition away from Humira, although sustaining broader growth will require continuing contributions from additional products and therapeutic areas.

9. Boston Scientific Corporation (NYSE:BSX)

Number of Hedge Fund Holders: 99

Boston Scientific Corporation (NYSE:BSX) develops minimally invasive medical devices, with its cardiovascular business spanning electrophysiology, structural heart treatments, and vascular interventions. The company’s long-term investment case rests on its expanding treatment portfolio, although its latest results indicate that sustaining revenue growth remains a challenge. November month-to-date share-price performance through November 6, 2026, shows that the stock gained 1.83%.

According to its third-quarter 2026 results, the company generated net sales of $5.138 billion, up 1.5% year over year on a reported, operational, and organic basis. Cardiovascular sales reached $3.406 billion, up from $3.343 billion in the prior year period, while MedSurg revenue increased 0.6% to $1.733 billion. Management also projected a 1%–3% net sales decline for the fourth quarter of 2026.

Nevertheless, Boston Scientific continues advancing its cardiovascular portfolio. The company reported on November 2 that its SIMPLAAFY trial met its six-month primary endpoints, providing clinical evidence supporting potentially simpler post-implant medication regimens for its WATCHMAN FLX Pro device.

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Meanwhile, the company’s proposed $14.5 billion acquisition of Penumbra, announced earlier this year, would expand its cardiovascular portfolio into mechanical thrombectomy and neurovascular treatments. However, Reuters reported that pricing pressure in China and weakness in certain heart-device businesses could constrain growth in 2027, making sustained product adoption and profitability important considerations for investors.

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