Best Healthcare Stocks to Buy in 2026

50 Premium Healthcare Companies.

Curated by Anish Das

Refreshed Oct 12, 2026

Access the highest quality healthcare stocks featuring $2B+ valuations and proven profitability in the medical sector.

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Screen VitalsEOD Data

Companies

Avg Market Cap

$72.18B

Avg ROE

28.85%

Avg P/E

32.14

Healthcare Sector

Pure-Play Exposure

Scale Matters

Market Cap ≥ $2B

High Efficiency

ROE ≥ 10%

Clean Capital

US Common Shares

Market Signal

Data Insight

This screen is currently exhibiting strong clustering in the Healthcare sector (100% of constituents).

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Compare Top 3 Open Screener

Ticker	Company	Price	Mkt Cap	Return 6M	ROE	ROIC
LLY	Eli Lilly and Company	$1179.27	$1.11T	25.5%	101.2%	41.8%
JNJ	Johnson & Johnson	$261.44	$629.34B	9.6%	35%	19.8%
MRK	Merck & Co., Inc.	$145.60	$359.61B	19.9%	36.9%	22%
GILD	Gilead Sciences, Inc.	$151.17	$187.69B	8.8%	40.7%	23.1%
ABT	Abbott Laboratories	$99.60	$173.48B	-0.7%	13%	10.5%
ISRG	Intuitive Surgical, Inc.	$423.96	$149.78B	-5.9%	16.6%	15%
VRTX	Vertex Pharmaceuticals Incorporated	$510.08	$129.46B	16.9%	22.5%	23%
SYK	Stryker Corporation	$277.33	$106.32B	-18.2%	15.1%	11.1%
CI	Cigna Corporation	$282.43	$74.71B	4.1%	14.3%	10.4%
EW	Edwards Lifesciences Corporation	$85.21	$49.06B	9.4%	10.5%	15.5%
A	Agilent Technologies, Inc.	$170.54	$48.17B	48.2%	20.6%	13.5%
VEEV	Veeva Systems Inc.	$296.13	$48.1B	95.6%	13.9%	12.9%
ILMN	Illumina, Inc.	$278.17	$42.09B	130%	33.4%	16.8%
IDXX	IDEXX Laboratories, Inc.	$518.00	$40.86B	-8%	66.2%	42.5%
RMD	ResMed Inc.	$230.05	$33.37B	0.5%	24.3%	24.5%
DXCM	DexCom, Inc.	$84.11	$32.46B	31.4%	34.5%	18.7%
WAT	Waters Corporation	$433.77	$32.44B	35.6%	29.3%	20.1%
ALNY	Alnylam Pharmaceuticals, Inc.	$232.68	$31.07B	-27.8%	73.3%	33.4%
GEHC	GE HealthCare Technologies Inc.	$65.74	$29.69B	-10.2%	21.6%	13.3%
WST	West Pharmaceutical Services, Inc.	$366.00	$25.76B	42.7%	16.9%	17.5%
UTHR	United Therapeutics Corporation	$549.16	$23.31B	-3.9%	19.7%	21.4%
INCY	Incyte Corporation	$112.79	$22.86B	17.4%	29.9%	51.1%
THC	Tenet Healthcare Corporation	$263.78	$22.72B	35.1%	16.1%	13.2%
MEDP	Medpace Holdings, Inc.	$612.05	$17.08B	24%	70.2%	154.9%
SOLV	Solventum Corporation	$87.29	$15.12B	32.7%	38.9%	16.9%
EXEL	Exelixis, Inc.	$59.86	$15.05B	35.2%	35.5%	32.1%
NBIX	Neurocrine Biosciences, Inc.	$142.44	$14.32B	10.5%	16.4%	16.1%
PEN	Penumbra, Inc.	$319.40	$12.56B	-3.1%	13.8%	11.3%
EHC	Encompass Health Corporation	$123.33	$12.23B	15%	18.5%	13.9%
UHS	Universal Health Services, Inc.	$177.35	$10.74B	-1.9%	21%	12.3%

LLY

Eli Lilly and Company

$1179.27Price

Mkt Cap$1.11T

Return 6M25.5%

ROE101.2%

ROIC41.8%

JNJ

Johnson & Johnson

$261.44Price

Mkt Cap$629.34B

Return 6M9.6%

ROE35%

ROIC19.8%

MRK

Merck & Co., Inc.

$145.60Price

Mkt Cap$359.61B

Return 6M19.9%

ROE36.9%

ROIC22%

GILD

Gilead Sciences, Inc.

$151.17Price

Mkt Cap$187.69B

Return 6M8.8%

ROE40.7%

ROIC23.1%

ABT

Abbott Laboratories

$99.60Price

Mkt Cap$173.48B

Return 6M-0.7%

ROE13%

ROIC10.5%

ISRG

Intuitive Surgical, Inc.

$423.96Price

Mkt Cap$149.78B

Return 6M-5.9%

ROE16.6%

ROIC15%

VRTX

Vertex Pharmaceuticals Incorporated

$510.08Price

Mkt Cap$129.46B

Return 6M16.9%

ROE22.5%

ROIC23%

SYK

Stryker Corporation

$277.33Price

Mkt Cap$106.32B

Return 6M-18.2%

ROE15.1%

ROIC11.1%

Cigna Corporation

$282.43Price

Mkt Cap$74.71B

Return 6M4.1%

ROE14.3%

ROIC10.4%

Edwards Lifesciences Corporation

$85.21Price

Mkt Cap$49.06B

Return 6M9.4%

ROE10.5%

ROIC15.5%

Agilent Technologies, Inc.

$170.54Price

Mkt Cap$48.17B

Return 6M48.2%

ROE20.6%

ROIC13.5%

VEEV

Veeva Systems Inc.

$296.13Price

Mkt Cap$48.1B

Return 6M95.6%

ROE13.9%

ROIC12.9%

ILMN

Illumina, Inc.

$278.17Price

Mkt Cap$42.09B

Return 6M130%

ROE33.4%

ROIC16.8%

IDXX

IDEXX Laboratories, Inc.

$518.00Price

Mkt Cap$40.86B

Return 6M-8%

ROE66.2%

ROIC42.5%

RMD

ResMed Inc.

$230.05Price

Mkt Cap$33.37B

Return 6M0.5%

ROE24.3%

ROIC24.5%

DXCM

DexCom, Inc.

$84.11Price

Mkt Cap$32.46B

Return 6M31.4%

ROE34.5%

ROIC18.7%

WAT

Waters Corporation

$433.77Price

Mkt Cap$32.44B

Return 6M35.6%

ROE29.3%

ROIC20.1%

ALNY

Alnylam Pharmaceuticals, Inc.

$232.68Price

Mkt Cap$31.07B

Return 6M-27.8%

ROE73.3%

ROIC33.4%

GEHC

GE HealthCare Technologies Inc.

$65.74Price

Mkt Cap$29.69B

Return 6M-10.2%

ROE21.6%

ROIC13.3%

WST

West Pharmaceutical Services, Inc.

$366.00Price

Mkt Cap$25.76B

Return 6M42.7%

ROE16.9%

ROIC17.5%

UTHR

United Therapeutics Corporation

$549.16Price

Mkt Cap$23.31B

Return 6M-3.9%

ROE19.7%

ROIC21.4%

INCY

Incyte Corporation

$112.79Price

Mkt Cap$22.86B

Return 6M17.4%

ROE29.9%

ROIC51.1%

THC

Tenet Healthcare Corporation

$263.78Price

Mkt Cap$22.72B

Return 6M35.1%

ROE16.1%

ROIC13.2%

MEDP

Medpace Holdings, Inc.

$612.05Price

Mkt Cap$17.08B

Return 6M24%

ROE70.2%

ROIC154.9%

SOLV

Solventum Corporation

$87.29Price

Mkt Cap$15.12B

Return 6M32.7%

ROE38.9%

ROIC16.9%

EXEL

Exelixis, Inc.

$59.86Price

Mkt Cap$15.05B

Return 6M35.2%

ROE35.5%

ROIC32.1%

NBIX

Neurocrine Biosciences, Inc.

$142.44Price

Mkt Cap$14.32B

Return 6M10.5%

ROE16.4%

ROIC16.1%

PEN

Penumbra, Inc.

$319.40Price

Mkt Cap$12.56B

Return 6M-3.1%

ROE13.8%

ROIC11.3%

EHC

Encompass Health Corporation

$123.33Price

Mkt Cap$12.23B

Return 6M15%

ROE18.5%

ROIC13.9%

UHS

Universal Health Services, Inc.

$177.35Price

Mkt Cap$10.74B

Return 6M-1.9%

ROE21%

ROIC12.3%

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Learn more about Best Healthcare Stocks to Buy in 2026

How We Build This List

Sector: HealthcareRestricts to Healthcare — pharmaceuticals, biotechnology, medical devices, and managed care. This sector spans both defensive value and high-growth opportunities.
Market Cap ≥ $2 BillionAt $2B+, medical companies typically have approved, commercialized products and diversified revenue streams. Filters out highly speculative, pre-revenue biotech startups.
ROE ≥ 10% (Quality Gate)Ensures the companies are highly profitable. This is especially crucial in healthcare, where R&D costs are massive and only the best operators command double-digit returns on equity.
US-Listed Common Shares Only (Excludes ADRs)Consistent GAAP data. Eliminates currency translation noise from foreign pharma peers.

Open Screener

What Makes a Stock a Best Healthcare Stocks constituent?

This screen identifies high-quality healthcare firms by filtering for a market cap over $2B and an ROE of at least 10%. By focusing on profitable, established players like UnitedHealth Group, which maintained strong ROE levels even during the 2020 pandemic, investors can avoid speculative, pre-revenue biotech firms that often burn cash without delivering results.

HEALTH

Sector Focus

Healthcare Only

MID-CAP

Size Filter

Market Cap >= $2B

10% ROE

Quality Filter

ROE >= 10%

Filter for Established Scale

We set a $2B minimum to exclude speculative biotech startups. For example, companies like Eli Lilly have the scale to fund massive R&D pipelines that small-cap firms cannot sustain.

Demand Profitability via ROE

An ROE of 10% filters for operational efficiency. Pfizer demonstrated this during 2021, where high capital efficiency allowed them to scale vaccine production profitably.

Focus on US-Listed Equities

We exclude ADRs to ensure GAAP reporting consistency. This avoids the accounting volatility seen in foreign firms like Novartis during the 2015 currency fluctuations.

Performance Dynamics: When Does This Strategy Outperform?

Strategy performance behaves differently based on market conditions. Let's analyze when this strategy outperforms and when it lags:

When Healthcare Quality Leads

✓ During the 2022 bear market, healthcare stocks outperformed the S&P 500 by roughly 12% as investors sought defensive earnings.
✓ In the 2008 financial crisis, large-cap healthcare firms like Johnson & Johnson saw significantly lower drawdowns than the broader market.
✓ During periods of high inflation, companies with pricing power like Merck often maintain margins better than consumer discretionary firms.

When Healthcare Quality Trails

✗ During the 2020-2021 tech-led bull market, healthcare lagged as investors chased high-growth software stocks with triple-digit returns.
✗ When interest rates fall rapidly, investors often rotate out of defensive healthcare into high-beta growth stocks, as seen in late 2023.
✗ During periods of extreme economic expansion, healthcare's steady growth often looks unattractive compared to cyclical sectors like industrials.

How to Use the Screener Results Table

To build a resilient portfolio, do not buy stocks on simple statistics alone. Use the key columns in our table to audit the durability, safety, and returns of each stock:

Return on Equity (ROE) Percentage

Measures how effectively management uses capital. A firm like Abbott Laboratories consistently hitting 15%+ ROE shows superior operational execution.

P/E Ratio Multiplier

Valuation relative to earnings. A P/E of 15x for a mature firm like CVS Health is often more sustainable than a 50x multiple for a volatile biotech.

Operating Margin Percentage

Indicates pricing power. Amgen's ability to maintain 30%+ margins highlights its competitive moat in the biologics space.

Debt-to-Equity Ratio

Measures leverage. A low ratio, like the one maintained by Gilead Sciences, provides a safety buffer during drug patent cliffs.

Risk Factors & Warning Signs to Track

The Patent Cliff Trap

The biggest risk is relying on past ROE while a company's primary drug faces patent expiration. For example, Bristol Myers Squibb faced significant pressure in 2023 as key patents neared expiration, proving that high historical ROE does not guarantee future growth if the product pipeline is empty.

What are Best Healthcare Stocks to Buy?

Isolates high-quality, profitable healthcare companies while filtering out speculative biotechs. It requires a $2B+ market cap and 10%+ ROE to focus on established sector giants.

Strictly Healthcare Sector
Market Capitalization ≥ $2 Billion
Return on Equity (ROE) ≥ 10%
US-Listed Common Shares Only

Why Invest in Best Healthcare Stocks to Buy?

Defensive Nature

Provides defensive demand through non-discretionary products

Demographic Tailwinds

Captures secular growth from aging global demographics

Innovation Upside

Offers massive upside from patented medical innovation

Profitability Filter

Ensures R&D spend converts to real profits

SCREEN CURATED BY

Anish Das

MBA, IIM Kozhikode · Founder & Individual Investor

5+ years experience

Methodology Verified

Review: Oct 2026

Founder of VCP Scanner, former Flipkart Brand Manager, and active US equity investor focused on transparent research workflows.

Editorial Disclosure: The data in this screener is systematically filtered using transparent rules, ensuring unbiased results. Reviewed for E-E-A-T standards. Not financial advice.

Frequently Asked Questions

Why exclude companies under $2B?

Small-cap biotech firms are often binary bets on a single clinical trial. A company like Novavax saw massive volatility in 2022, which is avoided by sticking to $2B+ market caps.

Is 10% ROE a high bar?

In healthcare, 10% is a baseline for quality. Industry giants like Johnson & Johnson have historically maintained ROEs well above this, signaling sustainable competitive advantages.

Does this screen include medical device makers?

Yes, companies like Medtronic are included if they meet the ROE and market cap criteria, as they provide essential, non-cyclical revenue.

How often should I re-screen?

Quarterly is ideal. Healthcare earnings reports, such as those from Pfizer or Merck, often trigger significant shifts in ROE that require a portfolio update.

Why avoid ADRs?

ADRs introduce currency risk and different accounting standards. Investing in US-listed firms like Eli Lilly provides cleaner, more comparable financial data.

Are these stocks recession-proof?

No stock is immune, but healthcare is defensive. During the 2008 recession, healthcare demand remained stable compared to the 37% drop in the S&P 500.

What if a stock has a high P/E but high ROE?

High ROE justifies a premium. For example, investors paid a high P/E for Intuitive Surgical in 2021 because its ROE reflected a dominant, recurring revenue model.

Does this screen capture growth biotech?

It captures established biotech, not speculative startups. It would include a profitable giant like Amgen but exclude a pre-revenue firm like many seen in the 2021 IPO boom.

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