The 10 Best Healthcare Stocks to Buy Now

The healthcare sector is worth nearly $6 trillion in annual US spending. How can you capitalize on that as an investor? You’ve come to the right place. We took a deep look inside the VectorVest stock forecasting tool and uncovered the 10 best healthcare stocks to buy now.

Healthcare spans everything from massive pharmaceutical companies to mid-cap device makers, dialysis providers, and more. We made it a point to find the best long-term healthcare stocks and growth opportunities so no matter why you’re investing, there’s something on this list for you.

Learn more about which stocks are worth adding to your portfolio, or at least to your watchlist in the meantime. We’ll also introduce you to the VST system VectorVest uses to help you find winning opportunities on autopilot and earn higher returns with less work and stress!

How Are Healthcare Stocks Performing in 2026?

Let’s zoom out before we zoom in. The sector as a whole has become one of the strongest on the stock market through 2026 so far. Investors are rotating out of expensive AI and tech positions into opportunities with better earnings visibility and more reasonable valuations.

Healthcare checks both those boxes. It’s why the Health Care Select Sector SPDR ETF (XLV) is up around 10% year-to-date. The sector trailed the S&P 500 for three years in a row, but has become a leader for the market as a whole.

There are quite a few reasons we don’t anticipate this trend stopping. First and foremost, US national health expenditures are going to hit $5.9 trillion this year according to CMS estimates.

The FDA also approved 22 novel drugs in the first half of 2026, ranging from oncology to immunology, rare disease, and infectious disease.

Big drug companies are about to lose patent protection on some of their best-selling drugs. Yes, that’s a concern for pharma manufacturers – but they’re buying up smaller companies with promising drugs in development to try and replace what could become lost revenue.

Some of the best long-term healthcare stocks have decades of consecutive dividend increases. There are so many stable opportunities at your disposal. But not every company in healthcare has managed to ride the wave. Plenty have been hit by cyberattacks, DOJ investigations, product shutdowns, and, as a result, double-digit share price plummets.

The good news? You can avoid the pitfalls by simply choosing the best healthcare stocks to invest in – we’ve handpicked the top 10 companies on the stock market right now.

Top 10 Best Healthcare Stocks to Buy Now

From pharma to insurance, medical devices, biotech, and dialysis, there are so many sub-sectors you can pick from if you’re trying to add healthcare to your portfolio. Start with any of these 10 stocks, and you’re on the right track.

1. Eli Lilly (LLY)

Eli Lilly crossed the $1 trillion market cap threshold thanks to GLP-1 drug demand, and that isn’t going to slow down anytime soon. The company posted impressive Q2 2026 revenue results of $23 billion, up 48% year over year. Mounjaro managed to bring in $9.9 billion in the quarter (+91%) while Zepbound added $4.9 billion (+44%).

The company’s management decided to raise full-year revenue guidance, now forecasting as high as $87 billion with an adjusted EPS of up to $36.50. But it’s not going to accomplish this through obesity and diabetes drugs alone. Eli Lilly is tapping into other pipelines, including Alzheimer’s, oncology, and immunology. New drugs are advancing through late-stage trials.

Meanwhile, the company managed to get Mounjaro on China’s National Reimbursement Drug List in Q1 of this year to open a massive international market.

LLY is up just over 7% through 2026 thus far, with a forward P/E around 24. That’s pretty reasonable against the growth rate. The company has a dividend yield of 0.60%.

2. UnitedHealth Group (UNH)

This is by far the largest US health insurer by revenue, covering around 150 million Americans through UnitedHealthcare and Optum. The company’s Q2 2026 revenue came in at $112 billion, while operating earnings hit $8 billion – up 55% year over year.

Now, it’s important to keep in mind that UNH is in the midst of recovering from its worst stretch in company history. We all know what happened back in December 2024 when the UnitedHealthcare CEO was assassinated. Beyond being an absolute tragedy, it was bad for business. UNH was cut in half overnight from around $600/share down to under $300/share in early 2025. It has made its way back up to around $378 since then. Still a long way to go. But we have reason to be optimistic.

First and foremost, CEO Stephen Hemsley has returned to the helm. Q2 earnings crushed estimates. Management raised full-year adjusted EPS guidance to a minimum of $19.50. The company still boasts a 2.4% dividend yield. And the UNH stock sits at a discount today. It could be one of the best long-term healthcare stocks if you’re looking to bet on a recovery.

3. Baxter International (BAX)

Baxter finished its sale of its Vantive kidney care segment to Carlyle for around $3.5 billion in cash not too long ago. Now, the company is working to reshape itself into a leaner medical products company.

Q2 2026 revenue was $2.7 billion, which beat out the consensus. Adjusted EPS came in above expectations, too, at $0.36 compared to $0.31.

BAX is up more than 21% YTD. It hit $28 per share earlier this year and corrected down to $23 per share over the past few months. We see it possibly resuming its upward trajectory as the company laid out a reasonable full-year adjusted EPS of $1.85-$2.05.

It’s a fairly small stock compared to other options on our list of the best healthcare stocks to invest in at only $12.23 billion market cap, but it could be a good opportunity if you want more leverage than some of the other stocks on this list can offer.

4. Boston Scientific (BSX)

Boston Scientific is an interesting one. The company makes devices for interventional cardiology, electrophysiology, endoscopy, urology, and neuromodulation, and has been known as one of the best in its industry for some time.

Q2 revenue grew by 7.5% to $5.44 billion. However, management has now cut full-year guidance twice. Revenue growth dropped from 10.5-11.5% to 5.5-6.5%, and adjusted EPS went from $3.43-$3.49 to $3.22-$3.28.

A lot of this can be traced back to a referral slowdown for its best-selling WATCHMAN device on the heels of new clinical evidence. Competitive share losses hit the electrophysiology business. Then, the company was hit by a cyberattack just a few months back, which took a toll on global manufacturing, order processing, and shipping.

BSX has plummeted due to all this – down more than 55% in the past year alone. So what business does it have being called one of the best healthcare stocks to buy now? We love a comeback story! This is certainly not the right stock for every investor. But speculative investors looking for higher returns could bet on this one.

5. Ionis Pharmaceuticals (IONS)

Ionis develops RNA-targeted therapeutics for cardiovascular and neurological conditions. The company’s Q2 revenue surged 56% year over year, reaching $268 million and beating analyst estimates by a whopping $73.5 million. Revenue for the first half of the year came in at $540 million, and management is expecting to hit as high as $900 million for the full year.

A lot of the buzz around IONS in the past month or two can be traced back to recent FDA approval for ZANVASTRO (zilganersen). This is the first and only disease-modifying treatment for Alexander disease. Meanwhile, peak sales estimates for olezarsen (severe hypertriglyceridemia) increased from $2 billion to over $3 billion. The company has $2.1 billion cash on hand, too, so it can continue investing in new drugs.

The stock may be down nearly 44% YTD, but that’s precisely why we think it’s one of the best healthcare stocks to buy now. Surely it has to turn around at some point with all the good news. Keep an eye on it, and wait for the right time to buy this one.

6. Fresenius Medical Care (FMS)

This is the largest provider of dialysis products and services in the world, operating thousands of global clinics. Q1 2026 revenue reached EUR 4,861 million, and operating income grew 23% at constant currency. The company blew EPS estimates out of the water at $1.05 vs $0.57.

Fresenius has put on a masterclass in cost discipline. Cumulative sustainable savings have reached EUR 920 million. The company is projecting EUR 1.2 billion by 2027.

Meanwhile, the new 5008X CAREsystems are rolling out across U.S. clinics at scale. It doesn’t look as if revenue will grow too much on the horizon, but it’s the bottom line most people are excited about with Fresenius. It just keeps getting more and more profitable.

The stock trades around $22.62 and has stayed relatively flat. We have to imagine the next batch of good news will send it higher. Add it to your watchlist if you are looking for the best healthcare stocks to invest in.

7. Johnson & Johnson (JNJ)

It should come as no surprise to see Johnson & Johnson on a list of the best long-term healthcare stocks. This company is right on track to bring in over $100 billion in annual revenue for the first time ever.

Q2 2026 revenue brought in $25.3 billion. That’s a 6.6% year-over-year growth. Management raised full-year revenue guidance to $101.1 billion with adjusted EPS of $11.68.

The biggest question mark was answered over this summer, when a $5.5 billion talc settlement resolved around 69,000 lawsuits. This had been holding the stock back for years, and now, JNJ is free to run. And it is indeed running. Up 30% YTD and 52% over the past year.

This is a great stock for any buy-and-hold investor. JNJ yields 1.96% and has increased its dividend for over 60 consecutive years. This is a fairly safe bet with a market cap of nearly $655 billion.

8. CVS Health Corp. (CVS)

CVS is involved in multiple elements of healthcare – pharmacy, insurance, and pharmacy benefit management. Q2 2026 revenue reached $106.1 billion, which was a 7.3% improvement year over year. Adjusted EPS was up big, too, at $2.58 (+42.5%). Management is guiding for full-year adjusted EPS of between $7.90-$8.10.

A lot of the heavy lifting is being done by the insurance segment. Aetna’s medical benefit ratio improved from 89.9% to 87.4%. It brought in over $2 billion in additional adjusted operating income during the first half of the year. The risk, though, is that Caremark membership is expected to decline. The PBM business is being put under regulatory reform pressure, too.

Nevertheless, CVS hit a new 52-week high of $110 per share this summer. It has corrected since then to around $88 per share, but hitting on the top end of its guidance for the full year earnings report could send shares surging once more. The dividend yield of 3.10% is one of the strongest on this list, too.

9. Abbott Laboratories (ABT)

Abbott does a lot in the healthcare space: diagnostics, medical devices (including the FreeStyle Libre continuous glucose monitor), nutritional products, and established pharmaceuticals. It’s well-diversified, and one of the best healthcare stocks to invest in now.

Q2 2026 revenue came in 13% higher at $12.59 billion. Management is expecting to see full-year adjusted EPS of $5.45-$5.60 as things continue to trend in the right direction.

ABT has had a tough year on the stock market, to be sure. Started the year at $126/share, fell to just $82/share, recovered to $116/share, and is now down to just $101/share. It’s volatile, but we know LOTS of investors that actively seek out the best volatile stocks for swing trading – and this could be a great opportunity in that regard.

However, we also think the stock itself is poised to recover its losses (down 18% YTD) and find calmer waters in the future. It seems as if the worst of the bumps are behind this stock.

10. Philips (PHG)

Last but not least, we found Philips to be very intriguing. The company builds medical imaging systems, patient monitoring equipment, and personal health products. It saw Q2 2026 revenue come in at $4.98 billion, with adjusted EPS up 36.1% year over year!

Now, Philips is still working through the aftermath of a CPAP recall that blew apart its market cap over the past few years. It still trades at nearly half its value relative to 5 years ago.

But while revenue growth is modest, profitability is really trending in the right direction. The company still offers a dividend yield between 3.3% and 3.8%. This is one of the best healthcare stocks to add to your watchlist as the next earnings date looms on the horizon.

Comparing the Best Performing Healthcare Stocks

Want to Find Other Great Opportunities in the Healthcare Sector?

These are ten of the best healthcare stocks to invest in depending on your goals as an investor and your risk tolerance. But they’re just the tip of the iceberg. There are so many other opportunities waiting to be discovered, and VectorVest makes it easy to find them.

The VectorVest system updates ratings every day for more than 18,000 stocks, providing a simple buy, sell, or hold recommendation at any given time. It has outperformed the S&P 500 index over the past 20 years and counting, helping investors win more trades with less work.

It’s all based on an intuitive, proprietary stock rating system – the VST system. It’s made up of three individual ratings (relative value, relative safety, and relative timing), each of which sits on a straightforward scale of 0.00-2.00.

You can search for new stock ideas by any of the VST indicators, or narrow it down by sector! Learn more about the stock advisory today and start trading smarter. You can get an in-depth stock analysis for free for any of these stocks, or any others on your watchlist, to see how it works.

Frequently asked questions

Is it a good time to buy healthcare stocks?

Yes – the sector as a whole is outperforming most other sectors. You just have to make sure you’re choosing the best healthcare stocks to buy at any given time, which is where the VectorVest stock forecasting tools come into play.

Which healthcare stock is the best to buy right now?

That all depends on what you’re investing for – long-term gains or speculation. You can whittle down the list of 10 great opportunities above to find something that aligns with your risk tolerance and goals.

What is the most undervalued healthcare stock?

There are a few worth looking at. BSX trades 55% below its September 2025 peak. IONS is down 45% YTD despite 56% revenue growth and a new FDA approval. UNH is 54% below its all-time high while posting 55% operating earnings growth. Any of these could pop. Just wait for the timing to be right. VectorVest will tell you when to buy.

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