Best Healthcare Stocks to Buy in 2026

49 Premium Healthcare Companies.

Curated by Anish Das

Refreshed Nov 6, 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

$80.49B

Avg ROE

29.01%

Avg P/E

33.94

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	$1367.71	$1.29T	38.6%	101.2%	41.8%
JNJ	Johnson & Johnson	$272.32	$655.53B	21.2%	35%	19.8%
MRK	Merck & Co., Inc.	$146.94	$362.92B	29.4%	36.9%	22%
GILD	Gilead Sciences, Inc.	$167.57	$208.05B	22.9%	40.7%	23.1%
ABT	Abbott Laboratories	$113.60	$197.87B	31.6%	13%	10.5%
ISRG	Intuitive Surgical, Inc.	$468.52	$165.52B	3.7%	16.6%	15%
VRTX	Vertex Pharmaceuticals Incorporated	$542.50	$137.69B	26.9%	22.5%	23%
SYK	Stryker Corporation	$335.08	$128.46B	14.6%	15.1%	11.1%
CI	Cigna Corporation	$301.48	$79.75B	6.9%	14.3%	10.4%
EW	Edwards Lifesciences Corporation	$100.82	$58.05B	21.2%	10.5%	15.5%
IDXX	IDEXX Laboratories, Inc.	$670.71	$52.91B	15.8%	66.2%	42.5%
VEEV	Veeva Systems Inc.	$310.10	$50.37B	85.3%	13.9%	12.9%
A	Agilent Technologies, Inc.	$171.78	$48.52B	46%	20.6%	13.5%
GEHC	GE HealthCare Technologies Inc.	$83.75	$37.83B	35.6%	21.6%	13.3%
RMD	ResMed Inc.	$239.31	$34.71B	14.2%	24.3%	24.5%
WAT	Waters Corporation	$453.08	$33.89B	29.6%	29.3%	20.1%
DXCM	DexCom, Inc.	$84.46	$32.59B	39.9%	34.5%	18.7%
ILMN	Illumina, Inc.	$208.00	$31.47B	45.9%	33.4%	16.8%
WST	West Pharmaceutical Services, Inc.	$392.48	$27.62B	25.6%	16.9%	17.5%
THC	Tenet Healthcare Corporation	$286.46	$24.67B	47.3%	16.1%	13.2%
UTHR	United Therapeutics Corporation	$565.72	$24.01B	-5.2%	19.7%	21.4%
INCY	Incyte Corporation	$118.01	$23.92B	18.2%	29.9%	51.1%
ALNY	Alnylam Pharmaceuticals, Inc.	$156.66	$20.92B	-48.3%	73.3%	33.4%
MEDP	Medpace Holdings, Inc.	$634.98	$17.72B	48.8%	70.2%	154.9%
EXEL	Exelixis, Inc.	$68.71	$17.27B	41.1%	35.5%	32.1%
NBIX	Neurocrine Biosciences, Inc.	$159.76	$16.06B	8.7%	16.4%	16.1%
SOLV	Solventum Corporation	$87.18	$15.1B	22.8%	38.9%	16.9%
EHC	Encompass Health Corporation	$141.27	$14.01B	34.5%	18.5%	13.9%
PEN	Penumbra, Inc.	$321.11	$12.63B	-1%	13.8%	11.3%
UHS	Universal Health Services, Inc.	$198.59	$12.02B	17.9%	21%	12.3%

LLY

Eli Lilly and Company

$1367.71Price

Mkt Cap$1.29T

Return 6M38.6%

ROE101.2%

ROIC41.8%

JNJ

Johnson & Johnson

$272.32Price

Mkt Cap$655.53B

Return 6M21.2%

ROE35%

ROIC19.8%

MRK

Merck & Co., Inc.

$146.94Price

Mkt Cap$362.92B

Return 6M29.4%

ROE36.9%

ROIC22%

GILD

Gilead Sciences, Inc.

$167.57Price

Mkt Cap$208.05B

Return 6M22.9%

ROE40.7%

ROIC23.1%

ABT

Abbott Laboratories

$113.60Price

Mkt Cap$197.87B

Return 6M31.6%

ROE13%

ROIC10.5%

ISRG

Intuitive Surgical, Inc.

$468.52Price

Mkt Cap$165.52B

Return 6M3.7%

ROE16.6%

ROIC15%

VRTX

Vertex Pharmaceuticals Incorporated

$542.50Price

Mkt Cap$137.69B

Return 6M26.9%

ROE22.5%

ROIC23%

SYK

Stryker Corporation

$335.08Price

Mkt Cap$128.46B

Return 6M14.6%

ROE15.1%

ROIC11.1%

Cigna Corporation

$301.48Price

Mkt Cap$79.75B

Return 6M6.9%

ROE14.3%

ROIC10.4%

Edwards Lifesciences Corporation

$100.82Price

Mkt Cap$58.05B

Return 6M21.2%

ROE10.5%

ROIC15.5%

IDXX

IDEXX Laboratories, Inc.

$670.71Price

Mkt Cap$52.91B

Return 6M15.8%

ROE66.2%

ROIC42.5%

VEEV

Veeva Systems Inc.

$310.10Price

Mkt Cap$50.37B

Return 6M85.3%

ROE13.9%

ROIC12.9%

Agilent Technologies, Inc.

$171.78Price

Mkt Cap$48.52B

Return 6M46%

ROE20.6%

ROIC13.5%

GEHC

GE HealthCare Technologies Inc.

$83.75Price

Mkt Cap$37.83B

Return 6M35.6%

ROE21.6%

ROIC13.3%

RMD

ResMed Inc.

$239.31Price

Mkt Cap$34.71B

Return 6M14.2%

ROE24.3%

ROIC24.5%

WAT

Waters Corporation

$453.08Price

Mkt Cap$33.89B

Return 6M29.6%

ROE29.3%

ROIC20.1%

DXCM

DexCom, Inc.

$84.46Price

Mkt Cap$32.59B

Return 6M39.9%

ROE34.5%

ROIC18.7%

ILMN

Illumina, Inc.

$208.00Price

Mkt Cap$31.47B

Return 6M45.9%

ROE33.4%

ROIC16.8%

WST

West Pharmaceutical Services, Inc.

$392.48Price

Mkt Cap$27.62B

Return 6M25.6%

ROE16.9%

ROIC17.5%

THC

Tenet Healthcare Corporation

$286.46Price

Mkt Cap$24.67B

Return 6M47.3%

ROE16.1%

ROIC13.2%

UTHR

United Therapeutics Corporation

$565.72Price

Mkt Cap$24.01B

Return 6M-5.2%

ROE19.7%

ROIC21.4%

INCY

Incyte Corporation

$118.01Price

Mkt Cap$23.92B

Return 6M18.2%

ROE29.9%

ROIC51.1%

ALNY

Alnylam Pharmaceuticals, Inc.

$156.66Price

Mkt Cap$20.92B

Return 6M-48.3%

ROE73.3%

ROIC33.4%

MEDP

Medpace Holdings, Inc.

$634.98Price

Mkt Cap$17.72B

Return 6M48.8%

ROE70.2%

ROIC154.9%

EXEL

Exelixis, Inc.

$68.71Price

Mkt Cap$17.27B

Return 6M41.1%

ROE35.5%

ROIC32.1%

NBIX

Neurocrine Biosciences, Inc.

$159.76Price

Mkt Cap$16.06B

Return 6M8.7%

ROE16.4%

ROIC16.1%

SOLV

Solventum Corporation

$87.18Price

Mkt Cap$15.1B

Return 6M22.8%

ROE38.9%

ROIC16.9%

EHC

Encompass Health Corporation

$141.27Price

Mkt Cap$14.01B

Return 6M34.5%

ROE18.5%

ROIC13.9%

PEN

Penumbra, Inc.

$321.11Price

Mkt Cap$12.63B

Return 6M-1%

ROE13.8%

ROIC11.3%

UHS

Universal Health Services, Inc.

$198.59Price

Mkt Cap$12.02B

Return 6M17.9%

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: Nov 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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