99 Hedge Funds Back This Healthcare Stock: Is It Time to Buy?

We just published the list of the 10 Best Healthcare and Insurance Stocks To Buy Following the 2026 Democratic Midterm Sweep and Boston Scientific Corporation (BSX) takes the 9th spot on the list.

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 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.

Against this backdrop, we examine the best healthcare and insurance stocks to buy after the 2026 democratic midterm sweep, focusing on their operating performance, financial strengths, and company-specific challenges. You can see the expanded list of the 10 Best Healthcare and Insurance Stocks To Buy Following the 2026 Democratic Midterm Sweep. The top 5 stocks are shared below.

Boston Scientific Corporation (BSX) made our list of the best healthcare and insurance stocks to buy following the 2026 democratic midterm sweep with 99 hedge funds backing it up, making it a very popular stock in this space.

Baird Maintains Bullish View on Boston Scientific (BSX) Despite Lower Target

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.

While we acknowledge the risk and potential of BSX as an investment, we believe certain AI infrastructure stocks offer far stronger long-term potential at a much more attractive entry point. If you are looking for an AI stock more promising than BSX that operates as a critical AI tollbooth and stands as the most important company in the world, check out our report about this must-own AI stock.

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This article is originally published at Insider Monkey.