Best large-cap healthcare stocks to invest in 2025
Large-cap healthcare companies provide investors with access to innovation, scale, and resilience – key traits in a sector driven by both demographic tailwinds and technological advancement. From pharmaceuticals to diagnostics, these firms play essential roles in the global healthcare ecosystem while maintaining strong balance sheets and consistent revenue growth. As healthcare spending continues to rise worldwide, large-cap players are positioned to benefit from both organic expansion and strategic acquisitions.
Hims & Hers Health has quickly scaled its digital platform to serve a growing market for accessible, personalized wellness and treatment solutions. McKesson, one of the largest pharmaceutical distributors globally, benefits from its central role in healthcare supply chains. HCA Healthcare operates one of the most expansive hospital networks in the U.S., offering reliable earnings and continuous infrastructure investments.
With innovation, scale, and demand-driven stability on their side, these companies are among the best large-cap healthcare stocks to invest in 2025.
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Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in top 10 stocks mentioned in this article 5 years ago.
Now, let`s take a closer look at each of the companies:
Hims & Hers Health (HIMS)
Hims & Hers Health Inc. is a direct-to-consumer telehealth company offering personalized healthcare solutions through a digital platform. Founded in 2017 and headquartered in San Francisco, California, the company has rapidly expanded its services across the United States. In 2024, Hims & Hers achieved its first profitable year, reporting revenue of $1.5 billion—a 69% increase year-over-year—and net income of $126 million. The company's core business encompasses several segments: men's health (including treatments for erectile dysfunction and hair loss), women's health (such as birth control and menopause care), mental health services, dermatology, and weight management. Hims & Hers operates a subscription-based model, providing virtual consultations, prescription medications, and over-the-counter products delivered directly to consumers. The platform emphasizes accessibility and convenience, targeting health-conscious individuals seeking discreet and affordable healthcare options.
Hims & Hers Health financial statements
Analysts recommendation: 2.44
Financial Health
- Return on assets (ROA): 24.54%
- Return on equity (ROE): 36.79%
- Return on investment (ROI): 27%
Profitability
- Gross margin: 68.19%
- Operating margin: 6.48%
- Net profit margin: 9.21%
Growth
- EPS (past 5 years): 17.22%
- EPS (current): 0.69
- EPS estimate (next quarter): 0.15
- EPS growth (this year): 24.57%
- EPS growth (next year): 46%
- EPS growth (next 5 years): 35.15%
- EPS growth (quarter-over-quarter): 313.81%
- Sales growth (past 5 years): 62.28%
- Sales growth (quarter-over-quarter): 110.67%
💡 Why invest in Hims & Hers Health?
Hims & Hers Health offers several compelling reasons to consider investing:
- Rapid Revenue Growth: The company reported a 69% year-over-year revenue increase in 2024, indicating strong market demand.
- First Year of Profitability: Achieving net income of $126 million in 2024 marks a significant milestone in the company's financial performance.
- Expanding Subscriber Base: With 2.2 million subscribers by the end of 2024, the company experienced a 45% increase from the previous year.
- Diversified Service Offerings: The company's broad range of healthcare services caters to various consumer needs, enhancing market reach.
🐌 Key considerations before investing in Hims & Hers Health
However, prospective investors should weigh the following challenges:
- Regulatory Challenges: The company's compounded weight-loss treatments have attracted regulatory scrutiny, potentially impacting future offerings.
- Market Competition: The telehealth sector is highly competitive, with numerous players offering similar services, which may pressure margins.
- Dependence on Subscription Model: Reliance on a subscription-based revenue model may pose risks if customer retention declines.
- Public Perception Risks: Executive stock sales and regulatory issues have led to public scrutiny, which could affect brand reputation.
Final thoughts on Hims & Hers Health
Hims & Hers Health's impressive revenue growth and transition to profitability in 2024 highlight its potential in the telehealth industry. While regulatory challenges and market competition present risks, the company's diversified services and expanding subscriber base position it well for continued growth.
McKesson (MCK)
McKesson Corporation is a leading healthcare distribution and services company specializing in pharmaceutical supply chain management, medical supplies, and healthcare technology solutions. Founded in 1833 and headquartered in Irving, Texas, McKesson has grown into one of the largest healthcare companies in the United States, playing a critical role in ensuring the efficient delivery of medicines and medical products. The company serves hospitals, pharmacies, and healthcare providers, helping to streamline operations and improve patient outcomes.
With an extensive global distribution network, McKesson delivers pharmaceuticals and medical products to thousands of locations, supporting both independent healthcare providers and large-scale institutions. The company is also a key player in healthcare technology, offering advanced data analytics, automation, and supply chain solutions that enhance efficiency and reduce costs. By continuously innovating and expanding its reach, McKesson remains a vital force in the healthcare industry, ensuring access to essential medicines and improving overall healthcare delivery.
McKesson financial statements
Analysts recommendation: 1.68
Financial Health
- Return on assets (ROA): 4.62%
- Return on equity (ROE): N/A
- Return on investment (ROI): 85.21%
Profitability
- Gross margin: 3.41%
- Operating margin: 1.15%
- Net profit margin: 0.92%
Growth
- EPS (past 5 years): 39.07%
- EPS (current): 25.82
- EPS estimate (next quarter): 8.29
- EPS growth (this year): 12.61%
- EPS growth (next year): 12.43%
- EPS growth (next 5 years): 12.58%
- EPS growth (quarter-over-quarter): 66.5%
- Sales growth (past 5 years): 9.32%
- Sales growth (quarter-over-quarter): 18.95%
💡 Why invest in McKesson?
McKesson's robust profile makes it a tempting pick for investors seeking exposure to the ever-evolving healthcare sector. Here are some key factors fueling its appeal:
- Healthcare Distribution Lifeline: McKesson boasts a leading position in pharmaceutical distribution across North America, delivering a third of all drugs used in the region. This leadership translates to predictable revenue streams and a strong foundation for future growth.
- Beyond the Bottle: Recognizing the changing healthcare landscape, McKesson expands its offerings beyond traditional drug distribution, venturing into areas like medical-surgical supplies, laboratory equipment, and healthcare information technology (IT) solutions. This strategic diversification mitigates risk and unlocks diverse avenues for growth beyond its core business.
- Technology Integration: McKesson embraces digital transformation, offering advanced IT solutions that help healthcare providers streamline operations, improve efficiency, and enhance patient care. This focus on tech integration positions the company for a leadership role in the evolving healthcare ecosystem.
- Global Reach: With operations spanning North America and Europe, McKesson caters to a diverse customer base and benefits from the growth of various regional healthcare markets. This global footprint positions the company for future expansion.
🐌 Key considerations before investing in McKesson
While McKesson navigates the healthcare labyrinth with its vast network and diverse services, there are some potential challenges to consider before joining this high-stakes journey:
- Regulation Roundup: Evolving regulations surrounding drug pricing, healthcare reform, and data privacy can impact McKesson's operations and necessitate costly compliance measures. Staying informed about regulatory developments and McKesson's adaptation strategies is crucial.
- Legal Landscape: McKesson has faced legal challenges regarding its role in the opioid epidemic, which can generate negative publicity and impact the company's reputation. Monitoring ongoing legal developments and McKesson's response strategies is important.
- Competition Heats Up: Smaller regional players and online pharmacies are vying for market share, challenging McKesson's dominant position. Stay informed about industry trends and how McKesson plans to maintain its competitive edge.
- Reliance on Others: McKesson's profitability is heavily reliant on the success of pharmaceutical companies and healthcare providers. Monitoring industry trends and the overall health of the healthcare sector is important.
Final thoughts on McKesson
McKesson Corporation's leadership in pharmaceutical distribution, diverse service offerings, technology integration, and global reach paint a potentially promising picture for long-term investors seeking exposure to the dynamic healthcare sector. However, the evolving regulatory landscape, legal challenges, rising competition, and reliance on other industry players warrant a measured approach...
HCA Healthcare (HCA)
HCA Healthcare is a leading healthcare services provider operating hospitals, surgery centers, and urgent care facilities across the United States and the U.K. The company was founded in 1968 and is headquartered in Nashville, Tennessee. With a strong reputation for high-quality patient care, HCA Healthcare is one of the largest hospital networks in the world.
The company's core business focuses on managing a vast network of hospitals, outpatient centers, and specialized healthcare services. HCA Healthcare delivers comprehensive medical care, including emergency services, surgery, maternity care, and cancer treatment. By leveraging advanced technology and data-driven approaches, the company enhances patient outcomes while expanding access to high-quality healthcare services.
HCA Healthcare financial statements
Analysts recommendation: 1.97
Financial Health
- Return on assets (ROA): 9.9%
- Return on equity (ROE): N/A
- Return on investment (ROI): 14.67%
Profitability
- Gross margin: 15.15%
- Operating margin: 15.15%
- Net profit margin: 8.07%
Growth
- EPS (past 5 years): 16.93%
- EPS (current): 22.51
- EPS estimate (next quarter): 6.26
- EPS growth (this year): 15.37%
- EPS growth (next year): 10.68%
- EPS growth (next 5 years): 12.92%
- EPS growth (quarter-over-quarter): 8.73%
- Sales growth (past 5 years): 6.69%
- Sales growth (quarter-over-quarter): 5.66%
💡 Why invest in HCA Healthcare?
HCA Healthcare offers several potential advantages for investors seeking exposure to the healthcare industry:
- Scale and Diversification: HCA Healthcare's extensive network of facilities across multiple states provides geographic diversification and economies of scale.
- Essential Services: Healthcare is a non-cyclical industry with consistent demand, making HCA Healthcare's services essential to the population.
- Focus on Patient Care: HCA Healthcare prioritizes quality patient care and operational efficiency, leading to strong patient satisfaction and loyalty.
- Growth Opportunities: The aging population and increasing demand for healthcare services create growth opportunities for HCA Healthcare.
🐌 Key considerations before investing in HCA Healthcare
However, before investing in HCA Healthcare, it's crucial to consider these potential challenges:
- Regulatory Environment: The healthcare industry is heavily regulated, with changes in policies impacting costs, reimbursement rates, and operations.
- Labor Shortages: The healthcare industry faces challenges in recruiting and retaining qualified staff, which can impact operational efficiency and costs.
- Economic Conditions: Economic downturns can affect patient volumes and insurance reimbursement rates, impacting HCA Healthcare's financial performance.
- Rising Costs: Increasing costs for labor, supplies, and technology can impact profitability.
Final thoughts on HCA Healthcare
HCA Healthcare's scale, focus on patient care, and position in the essential healthcare industry make it an attractive investment for those seeking exposure to this sector. However, the complex regulatory environment, labor challenges, economic sensitivity, and rising costs necessitate careful consideration. Thorough research on HCA Healthcare's expansion plans, its financial performance, and the overall healthcare industry trends are crucial before investing. Remember, the healthcare sector is complex and dynamic, and investing in HCA Healthcare requires a long-term perspective.
Cencora (COR)
Cencora is a global pharmaceutical services company that specializes in drug distribution, consulting, and supply chain solutions for healthcare providers and manufacturers. Originally founded as AmerisourceBergen in 2001 through the merger of AmeriSource Health and Bergen Brunswig, the company rebranded to Cencora in 2023 to reflect its evolving global presence. Headquartered in Conshohocken, Pennsylvania, Cencora has become one of the largest pharmaceutical distributors in the world, playing a crucial role in ensuring access to essential medications.
The company provides a wide range of services, including specialty drug distribution, pharmacy management, and consulting solutions for biotech and pharmaceutical firms. With a strong focus on innovation, Cencora leverages data-driven insights and advanced logistics to enhance supply chain efficiency and improve patient outcomes. By working closely with healthcare providers, manufacturers, and pharmacies, Cencora continues to strengthen its position as a critical partner in the global healthcare ecosystem.
Cencora financial statements
Analysts recommendation: 1.89
Financial Health
- Return on assets (ROA): 2.51%
- Return on equity (ROE): 161.58%
- Return on investment (ROI): 20.91%
Profitability
- Gross margin: 2.94%
- Operating margin: 1.03%
- Net profit margin: 0.55%
Growth
- EPS (past 5 years): 13.29%
- EPS (current): 8.62
- EPS estimate (next quarter): 3.82
- EPS growth (this year): 14.63%
- EPS growth (next year): 9.65%
- EPS growth (next 5 years): 11.51%
- EPS growth (quarter-over-quarter): 75.92%
- Sales growth (past 5 years): 10.39%
- Sales growth (quarter-over-quarter): 10.29%
💡 Why invest in Cencora?
Cencora's robust profile presents a compelling case for investors seeking exposure to the evolving healthcare sector. Here's what fuels its healing engine:
- Distribution Dynamo: Cencora boasts a commanding presence in the US pharmaceutical distribution landscape, serving a vast network of healthcare providers and pharmacies. This leadership in logistics translates to consistent volume and predictable revenue streams, laying a solid foundation for future growth.
- Beyond the Bottle: Recognizing the shifting healthcare landscape, Cencora diversifies its offerings, providing value-added services like clinical trial logistics, specialty drug distribution, and data analytics solutions. This strategic expansion mitigates risk and unlocks diverse avenues for growth beyond traditional drug distribution.
- Global Growth Gambit: With operations spanning continents, Cencora taps into diverse healthcare needs and unlocks international growth potential. This global reach provides access to emerging markets with burgeoning healthcare demands, further bolstering its future prospects.
- Technology Alchemist: From automation in warehouses to AI-powered data analysis, Cencora invests heavily in R&D, striving to improve efficiency and personalize healthcare delivery. This commitment to innovation ensures its operations remain relevant and adaptable in a tech-driven healthcare landscape.
🐌 Key considerations before investing in Cencora
While Cencora navigates the medical maze with its distribution dominance and strategic expansion, there are some potential side effects to consider before joining this healthcare journey:
- Valuation Concerns: Like many established healthcare companies, COR's stock currently sits near multi-year highs. This might limit immediate gains, and a cautious approach with a patient, long-term perspective might be wise.
- Regulatory Maze: Evolving healthcare regulations and reimbursement challenges can impact Cencora's profitability and operational efficiency. Close monitoring of regulatory changes and their potential impact is crucial.
- Competition Conundrum: The healthcare sector is a competitive battleground, with diverse providers vying for attention. Cencora needs to constantly innovate and refine its offerings to maintain its competitive edge. Stay informed about industry trends and how Cencora plans to stand out.
- Economic Dependence: Healthcare spending can be impacted by economic downturns, potentially hitting Cencora's business volume and profitability. Monitoring broader economic trends is crucial for anticipating potential fluctuations.
Final thoughts on Cencora
Cencora's distribution dominance, value-added services, global expansion, and unwavering commitment to technology paint a potentially promising picture for long-term investors seeking exposure to the dynamic healthcare sector. However, near-peak valuation, regulatory uncertainties, rising competition, and economic dependence warrant a measured approach. Thorough research, analysis of Cencora's future plans and the healthcare landscape, and a clear understanding of your risk tolerance are crucial before joining this medical journey. Remember, navigating the intricate terrain of healthcare stocks requires both a discerning eye for innovative solutions and a balanced perspective on potential challenges. Choose wisely, and your portfolio might just find itself invigorated by the strategic metamorphosis of Cencora Inc.
Cardinal Health (CAH)
Cardinal Health is a multinational healthcare services and products company that provides pharmaceuticals, medical supplies, and solutions to healthcare providers worldwide. The company was founded in 1971 in Dublin, Ohio, originally as Cardinal Foods before shifting its focus to pharmaceutical distribution. Over the years, it has grown into a critical player in the healthcare supply chain, ensuring the efficient delivery of essential medical products.
Cardinal Health operates through two main segments: pharmaceutical distribution and medical products. Its pharmaceutical division supplies medications to hospitals, pharmacies, and healthcare facilities, while its medical segment provides surgical supplies, laboratory products, and patient care solutions. With a strong focus on logistics, Cardinal Health helps healthcare providers optimize supply chain efficiency, reduce costs, and improve patient care outcomes.
Cardinal Health financial statements
Analysts recommendation: 1.84
Financial Health
- Return on assets (ROA): 3.25%
- Return on equity (ROE): N/A
- Return on investment (ROI): 37.18%
Profitability
- Gross margin: 3.4%
- Operating margin: 1.07%
- Net profit margin: 0.7%
Growth
- EPS (past 5 years): -5.3%
- EPS (current): 6.4
- EPS estimate (next quarter): 1.97
- EPS growth (this year): 7.82%
- EPS growth (next year): 11.96%
- EPS growth (next 5 years): 10.45%
- EPS growth (quarter-over-quarter): 99.37%
- Sales growth (past 5 years): 9.33%
- Sales growth (quarter-over-quarter): -0.06%
💡 Why invest in Cardinal Health?
Cardinal Health offers several potential advantages for investors seeking exposure to the healthcare industry:
- Essential Role: As a distributor of pharmaceuticals and medical products, Cardinal Health plays a critical role in the healthcare supply chain.
- Diversified Revenue Streams: The company's three segments provide a diversified revenue base, reducing reliance on any single market.
- Scale and Efficiency: Cardinal Health's size and scale enable it to leverage its distribution network and negotiate favorable terms with suppliers.
- Growth Potential: The healthcare industry continues to grow, driven by factors such as an aging population and increasing demand for medical services.
🐌 Key considerations before investing in Cardinal Health
However, before investing in Cardinal Health, it's crucial to consider these potential challenges:
- Regulatory Environment: The healthcare industry is heavily regulated, with changes in government policies impacting reimbursement rates and market dynamics.
- Competition: The pharmaceutical distribution and medical products markets are competitive, with both established players and new entrants vying for market share.
- Supply Chain Disruptions: Issues with product availability, transportation, or manufacturing can impact operations and profitability.
- Economic Conditions: Economic downturns can affect healthcare spending and demand for medical products.
Final thoughts on Cardinal Health
Cardinal Health's role as a healthcare distribution leader, diversified revenue streams, and scale offer potential advantages for investors. However, the regulatory environment, competition, supply chain risks, and economic factors necessitate careful consideration. Thorough research on Cardinal Health's market share, financial performance, and the overall healthcare industry trends is crucial before investing.
Intuitive Surgical (ISRG)
Intuitive Surgical Inc. is a pioneer in robotic-assisted, minimally invasive surgery, best known for its da Vinci Surgical System. Founded in 1995 and headquartered in Sunnyvale, California, the company has established a significant presence in the medical technology sector. In 2024, Intuitive Surgical reported revenues of $8.35 billion, marking a 17% increase from the previous year, and a net income of $2.32 billion, reflecting a 29% year-over-year growth. The company's core business revolves around developing and manufacturing robotic surgical systems, primarily the da Vinci Surgical System, which enables surgeons to perform complex procedures with enhanced precision and control. Intuitive also offers a suite of instruments, accessories, and services, including training and support, to facilitate the effective use of its technology. Additionally, the company provides integrated digital capabilities and data-driven insights to optimize surgical performance and patient outcomes.
Intuitive Surgical financial statements
Analysts recommendation: 1.97
Financial Health
- Return on assets (ROA): 14.13%
- Return on equity (ROE): 15.94%
- Return on investment (ROI): 14.47%
Profitability
- Gross margin: 67.08%
- Operating margin: 28.2%
- Net profit margin: 28.41%
Growth
- EPS (past 5 years): 10.77%
- EPS (current): 6.82
- EPS estimate (next quarter): 1.93
- EPS growth (this year): 6.25%
- EPS growth (next year): 15.97%
- EPS growth (next 5 years): 13.03%
- EPS growth (quarter-over-quarter): 26.73%
- Sales growth (past 5 years): 13.81%
- Sales growth (quarter-over-quarter): 19.19%
💡 Why invest in Intuitive Surgical?
Intuitive Surgical Inc. offers several compelling reasons to consider investing:
- Market Leadership: As a pioneer in robotic-assisted surgery, Intuitive Surgical maintains a dominant position in the market with a substantial installed base of da Vinci systems worldwide.
- Strong Financial Performance: The company has demonstrated consistent revenue and net income growth, with a 17% and 29% increase respectively in 2024.
- Recurring Revenue Model: A significant portion of Intuitive's revenue comes from recurring sources, such as instrument and accessory sales and service contracts, providing financial stability.
- Innovation and R&D Investment: With over 2,000 employees in research and development, the company continues to innovate and expand its product offerings.
🐌 Key considerations before investing in Intuitive Surgical
However, prospective investors should weigh the following challenges:
- High Valuation: The company's strong performance has led to a high stock valuation, which may limit upside potential and make the stock more sensitive to market fluctuations.
- Regulatory Risks: Operating in the medical device industry, Intuitive is subject to stringent regulatory requirements, which can impact product approvals and market access.
- Competitive Pressure: The growing interest in robotic-assisted surgery has attracted new entrants, increasing competition and potential pricing pressures.
- Economic Sensitivity: Capital equipment purchases, such as surgical systems, can be influenced by hospital budgets and economic conditions, potentially affecting sales.
Final thoughts on Intuitive Surgical
Intuitive Surgical's leadership in robotic-assisted surgery, robust financial performance, and commitment to innovation position it as a strong player in the medical technology industry. While challenges exist, the company's strategic focus and recurring revenue model provide a solid foundation for sustained growth.
Boston Scientific (BSX)
Boston Scientific is a global medical technology company specializing in less-invasive devices that improve patient outcomes across a range of specialties. Founded in 1979 and headquartered in Marlborough, Massachusetts, the company has grown into a leader in the medical device industry. In 2024, Boston Scientific reported net sales of $16.747 billion, a 17.6% increase from the previous year, and a net income of $1.853 billion, up 18% year-over-year. The company's core business is organized into two primary segments: Cardiovascular and MedSurg. The Cardiovascular segment includes Interventional Cardiology, Peripheral Interventions, Cardiac Rhythm Management, and Electrophysiology, focusing on heart and vascular conditions. The MedSurg segment encompasses Endoscopy, Urology, and Neuromodulation, providing minimally invasive solutions for gastrointestinal, urological, and neurological disorders.
Boston Scientific financial statements
Analysts recommendation: 1.38
Financial Health
- Return on assets (ROA): 5.29%
- Return on equity (ROE): 9.65%
- Return on investment (ROI): 6.13%
Profitability
- Gross margin: 61.84%
- Operating margin: 16.56%
- Net profit margin: 11.58%
Growth
- EPS (past 5 years): -17.84%
- EPS (current): 1.36
- EPS estimate (next quarter): 0.73
- EPS growth (this year): 16.35%
- EPS growth (next year): 12.81%
- EPS growth (next 5 years): 13.99%
- EPS growth (quarter-over-quarter): 35.11%
- Sales growth (past 5 years): 9.77%
- Sales growth (quarter-over-quarter): 20.93%
💡 Why invest in Boston Scientific?
Boston Scientific offers several compelling reasons to consider investing:
- Strong Financial Performance: The company has demonstrated consistent revenue and net income growth, with a notable 17.6% increase in net sales in 2024.
- Innovative Product Portfolio: Boston Scientific continues to develop and launch cutting-edge medical devices, such as the Farapulse pulsed field ablation system, enhancing its competitive edge.
- Market Leadership: With a diversified portfolio across multiple medical specialties, the company maintains a strong position in the medical device industry.
🐌 Key considerations before investing in Boston Scientific
However, prospective investors should weigh the following challenges:
- Regulatory Risks: As a medical device manufacturer, the company is subject to stringent regulatory approvals, which can impact product launch timelines and costs.
- Product Recalls: Any issues leading to product recalls can affect the company's reputation and financial performance.
- Market Competition: The medical device industry is highly competitive, with numerous players vying for market share, which can pressure pricing and margins.
Final thoughts on Boston Scientific
Boston Scientific's robust financial growth and commitment to innovation position it as a compelling investment in the medical technology sector. While regulatory challenges and market competition are inherent risks, the company's diversified product portfolio and strong market presence offer potential for sustained long-term growth.
United Therapeutics (UTHR)
United Therapeutics is a biotechnology company specializing in the development and commercialization of innovative therapies for pulmonary hypertension and other life-threatening diseases. Founded in 1996 and headquartered in Silver Spring, Maryland, the company was established with a mission to address unmet medical needs through cutting-edge science and breakthrough treatments. Over the years, it has grown into a leading player in the biotech sector, leveraging advanced technologies to improve patient outcomes.
The company is best known for its portfolio of treatments for pulmonary arterial hypertension (PAH), including Remodulin, Tyvaso, and Orenitram, which have significantly improved the quality of life for patients. Beyond PAH, United Therapeutics is actively developing organ transplantation solutions, including 3D-printed organs and xenotransplantation, aiming to revolutionize the field of regenerative medicine. By combining innovation with a commitment to addressing rare and serious conditions, the company continues to push the boundaries of biotechnology to save and extend lives.
United Therapeutics financial statements
Analysts recommendation: 1.8
Financial Health
- Return on assets (ROA): 17.01%
- Return on equity (ROE): 19.94%
- Return on investment (ROI): 17.79%
Profitability
- Gross margin: 89%
- Operating margin: 46.88%
- Net profit margin: 40.44%
Growth
- EPS (past 5 years): N/A
- EPS (current): 25.06
- EPS estimate (next quarter): 7.31
- EPS growth (this year): 13.05%
- EPS growth (next year): 5.64%
- EPS growth (next 5 years): 6.49%
- EPS growth (quarter-over-quarter): 7.47%
- Sales growth (past 5 years): 14.94%
- Sales growth (quarter-over-quarter): 17.22%
💡 Why invest in United Therapeutics?
United Therapeutics' unique position in the biotechnology sector offers several potential advantages for investors seeking exposure to the healthcare industry:
- Focus on Orphan Diseases: The company primarily targets rare and life-threatening diseases, often with limited treatment options, creating a high unmet medical need.
- First-to-Market Advantage: United Therapeutics has successfully developed and commercialized several first-in-class therapies, providing a competitive advantage.
- Product Diversification: While pulmonary arterial hypertension (PAH) remains a core focus, the company is expanding into other therapeutic areas to reduce reliance on a single product.
- Strong Intellectual Property: United Therapeutics has a robust patent portfolio protecting its innovative products and processes.
🐌 Key considerations before investing in United Therapeutics
However, before investing in United Therapeutics, it's crucial to consider these potential challenges:
- High Competition: The biotechnology industry is highly competitive, with numerous companies developing treatments for similar diseases.
- Regulatory Risks: Drug development and approval processes are complex and subject to regulatory changes, which can impact product timelines and commercialization.
- Market Volatility: The biotechnology sector is known for its volatility, with stock prices often fluctuating based on clinical trial results, regulatory approvals, and market sentiment.
- Dependency on Key Products: While United Therapeutics has a diversified product pipeline, its commercial success is still heavily reliant on the performance of its core products.
Final thoughts on United Therapeutics
United Therapeutics' focus on orphan diseases, its track record of successful product development, and the potential for future growth in its pipeline paint a promising picture for long-term investors seeking exposure to the biotechnology sector. However, the competitive landscape, regulatory risks, market volatility, and dependence on key products necessitate careful consideration. Thorough research on United Therapeutics' product pipeline, clinical trial progress, and a clear understanding of the biotechnology industry are crucial before adding them to your portfolio. Remember, sometimes the most impactful investments come from companies addressing unmet medical needs. United Therapeutics could be a pioneering choice for your investment journey, but be sure to assess the potential risks before investing.
Argenx (ARGX)
Argenx SE is a global immunology company dedicated to developing innovative antibody-based therapies for severe autoimmune diseases and cancer. Founded in 2008 and headquartered in Breda, Netherlands, the company has built a strong reputation for leveraging its proprietary antibody discovery platform to target complex diseases with high unmet medical needs. Argenx collaborates with leading academic institutions and biotech partners to accelerate the development of transformative treatments.
With a robust pipeline of novel therapies, Argenx is best known for its flagship drug, Vyvgart (efgartigimod), which has been approved for the treatment of generalized myasthenia gravis (gMG). The company's unique approach focuses on harnessing the immune system to precisely modulate disease pathways, offering hope for patients suffering from debilitating autoimmune conditions. Through continuous innovation and strategic global expansion, Argenx SE remains at the forefront of next-generation immunotherapy development.
Argenx financial statements
Analysts recommendation: 1.29
Financial Health
- Return on assets (ROA): 15.48%
- Return on equity (ROE): 17.33%
- Return on investment (ROI): 15.03%
Profitability
- Gross margin: 89.2%
- Operating margin: -3.46%
- Net profit margin: 38.03%
Growth
- EPS (past 5 years): N/A
- EPS (current): 12.76
- EPS estimate (next quarter): 2.99
- EPS growth (this year): -1.08%
- EPS growth (next year): 62.87%
- EPS growth (next 5 years): 32.03%
- EPS growth (quarter-over-quarter): N/A
- Sales growth (past 5 years): 261.74%
- Sales growth (quarter-over-quarter): N/A
💡 Why invest in Argenx?
argenx offers several potential advantages for investors seeking exposure to the biotechnology sector:
- Innovative Platform: The company's Simple Antibody platform enables the rapid discovery and development of novel antibody therapeutics, driving pipeline growth.
- Focus on High-Need Diseases: argenx targets severe autoimmune diseases with limited treatment options, creating potential for significant market opportunity.
- Product Pipeline Diversity: A diversified pipeline reduces reliance on the success of a single product candidate.
- Potential for Partnerships and Acquisitions: Collaborations with other pharmaceutical companies can accelerate drug development and commercialization.
🐌 Key considerations before investing in Argenx
However, before investing in argenx, it's crucial to consider these potential challenges:
- Clinical Development Risk: Developing and commercializing new drugs is a complex and risky process with high rates of failure.
- Regulatory Hurdles: Gaining regulatory approval for new drugs can be time-consuming and expensive.
- Market Competition: The biotechnology industry is highly competitive, with numerous companies developing therapies for similar diseases.
- Financial Risk: Biotech companies often require substantial funding for research and development, which can lead to dilution for existing shareholders.
Final thoughts on Argenx
Argenx's innovative platform, focus on high-need diseases, and diversified pipeline make it an attractive investment for those seeking exposure to the biotechnology sector. However, the inherent risks of drug development, regulatory challenges, and market competition necessitate careful consideration. Thorough research on argenx's pipeline, clinical trial progress, and financial position is crucial before investing. Remember, investing in biotechnology companies often involves a long-term perspective and a tolerance for risk.
Stryker (SYK)
Stryker is a global medical-technology company that develops devices and services aimed at improving patient outcomes in orthopaedics, neurotechnology, and MedSurg specialties. Founded in 1941 in Kalamazoo, Michigan, by orthopaedic surgeon Dr. Homer Stryker, the firm has grown into one of the world's largest pure-play med-tech providers. For full-year 2024 it reported net sales of $16.7 billion—up 17.6% year-on-year—and net income of $1.85 billion, with management guiding to a further 8.5%-9.5% organic sales increase for 2025. Stryker's core business is organised around two primary segments: Orthopaedics & Spine, which includes joint replacement, trauma, extremities and (following recent portfolio reshaping) select spine and sports-medicine solutions, and MedSurg & Neurotechnology, covering endoscopy, surgical equipment, patient handling, neurovascular and neuromodulation devices. Both segments leverage an active acquisition strategy—more than 50 deals over the past decade—to expand technology platforms and geographic reach. Continued investment in R&D and accelerated commercial launches, such as the Farapulse pulsed-field ablation system, underpin Stryker's push into high-growth cardiovascular and robotics markets.
Stryker financial statements
Analysts recommendation: 1.76
Financial Health
- Return on assets (ROA): 6.69%
- Return on equity (ROE): 14.26%
- Return on investment (ROI): 8%
Profitability
- Gross margin: 61.73%
- Operating margin: 22.19%
- Net profit margin: 12.31%
Growth
- EPS (past 5 years): 7.2%
- EPS (current): 7.41
- EPS estimate (next quarter): 3.07
- EPS growth (this year): 9.52%
- EPS growth (next year): 11.15%
- EPS growth (next 5 years): 10.85%
- EPS growth (quarter-over-quarter): -17.28%
- Sales growth (past 5 years): 8.96%
- Sales growth (quarter-over-quarter): 11.88%
💡 Why invest in Stryker?
Stryker Corporation offers several compelling reasons to consider investing:
- Consistent Double-Digit Organic Growth: The company delivered organic sales increases of around 10% in both 2023 and 2024 and is guiding to high-single-digit growth again for 2025, underscoring sustained demand for its portfolio.
- Diversified High-Value Portfolio: Leadership positions in joint replacement, trauma, surgical equipment and neurotechnology reduce dependency on any single therapy area and provide cross-selling opportunities.
- Robust Innovation Pipeline: Marquee launches such as Mako robotic-assisted surgery upgrades and Farapulse PFA expand addressable markets and strengthen technological differentiation.
- Proven M&A Discipline: A long history of bolt-on acquisitions—supported by strong free cash flow—allows Stryker to enter new niches and augment growth without overleveraging.
🐌 Key considerations before investing in Stryker
However, prospective investors should weigh the following challenges:
- Regulatory and Quality-Control Risk: As a device manufacturer, Stryker faces potential recalls or FDA enforcement actions that can disrupt sales and erode brand trust.
- Capital-Equipment Sensitivity: Hospital budget pressures or macroeconomic slowdowns can delay purchases of big-ticket systems like Mako robots, affecting near-term revenues.
- Portfolio Reshaping Uncertainty: The recent divestiture of the U.S. spine business demonstrates select underperforming units and may create temporary revenue gaps during transition.
- Intense Competitive Landscape: Rival med-tech giants and innovative start-ups continually launch alternative orthopaedic and cardiovascular devices, pressuring pricing and market share.
Final thoughts on Stryker
Stryker combines a track record of double-digit organic growth, a diversified and innovation-rich product suite, and disciplined capital deployment to position itself as a long-term winner in global medical technology. Investors should balance those strengths against industry-wide regulatory risks, capital-equipment cyclicality, and competitive pressures when evaluating the company's future prospects.
Cigna (CI)
The Cigna Group is a global health services company providing insurance, pharmacy benefits, and healthcare solutions to individuals and businesses. Founded in 1982 and headquartered in Bloomfield, Connecticut, the company has grown into one of the largest health insurers in the world, serving millions of customers across more than 30 countries. With a focus on improving health outcomes and affordability, Cigna offers a wide range of services, including medical, dental, disability, and life insurance products.
The company operates through its core segments, including Cigna Healthcare and Evernorth, its health services division, which provides pharmacy benefit management, behavioral health, and care delivery solutions. Cigna is known for its emphasis on preventive care, value-based contracting, and digital health innovation to enhance patient experiences and reduce overall healthcare costs. By leveraging data-driven insights and a customer-first approach, The Cigna Group continues to play a vital role in shaping the future of healthcare, making high-quality care more accessible and efficient.
Cigna financial statements
Analysts recommendation: 1.58
Financial Health
- Return on assets (ROA): 3.42%
- Return on equity (ROE): 12.37%
- Return on investment (ROI): 7.55%
Profitability
- Gross margin: N/A
- Operating margin: 3.41%
- Net profit margin: 1.98%
Growth
- EPS (past 5 years): -2.04%
- EPS (current): 18.05
- EPS estimate (next quarter): 7.14
- EPS growth (this year): 8.57%
- EPS growth (next year): 11.54%
- EPS growth (next 5 years): 10.69%
- EPS growth (quarter-over-quarter): 601.24%
- Sales growth (past 5 years): 9.98%
- Sales growth (quarter-over-quarter): 18.19%
💡 Why invest in Cigna?
The Cigna Group's strong position in the healthcare industry offers several potential advantages for investors seeking exposure to this critical sector:
- Essential service: Health insurance is a must-have, making Cigna's offerings crucial for individuals and businesses.
- Diversified products: Cigna offers a wide range of health and dental plans, reducing reliance on any single market segment.
- Innovation focus: Cigna invests in new technologies to improve healthcare access, affordability, and customer experience.
- Global presence: Operating in over 65 countries allows Cigna to benefit from growth in emerging healthcare markets.
🐌 Key considerations before investing in Cigna
However, before investing in The Cigna Group, it's crucial to consider the potential challenges they face:
- Competitive landscape: The healthcare insurance industry is crowded, with Cigna needing a competitive edge in cost, coverage, and digital experience.
- Regulatory environment: Changes in government policies or healthcare laws can significantly impact Cigna's products, pricing, and profitability.
- Rising healthcare costs: Cigna must manage costs effectively while offering comprehensive coverage to customers.
- Economic downturns: During economic downturns, businesses and individuals might cut back on healthcare spending, impacting Cigna's revenue growth.
Final thoughts on Cigna
The Cigna Group's strong brand, experience, diversified products, and focus on innovation paint a promising picture for long-term investors seeking exposure to the essential healthcare sector. However, the competitive landscape, regulatory environment, rising healthcare costs, and economic sensitivity necessitate careful consideration. Thorough research on Cigna's innovation pipeline, their strategies for navigating these challenges, and a clear understanding of your risk tolerance are crucial before adding The Cigna Group to your portfolio. Remember, in today's world, navigating healthcare can be complex, and The Cigna Group strives to be a guiding force. Their story could be a healthy addition to your investment journey.
Gilead Sciences (GILD)
Gilead Sciences is a U.S.-based biopharmaceutical company renowned for its antiviral and oncology therapies. Founded in 1987 in Foster City, California, by Michael L. Riordan, the company has grown into a global leader in its field. In 2024, Gilead reported revenues of $28.75 billion, a 6% increase from the previous year, though net income declined sharply to $480 million due to acquisition-related charges. The company's core business encompasses a diverse portfolio of therapies targeting HIV, hepatitis B and C, and various cancers. Its flagship HIV treatment, Biktarvy, continues to lead in sales, while oncology products like Yescarta and Trodelvy are gaining traction. Gilead is also advancing its pipeline with promising candidates such as lenacapavir for HIV prevention and seladelpar for liver diseases.
Gilead Sciences financial statements
Analysts recommendation: 1.87
Financial Health
- Return on assets (ROA): 10.58%
- Return on equity (ROE): 32.51%
- Return on investment (ROI): 14.44%
Profitability
- Gross margin: 78.25%
- Operating margin: 38.01%
- Net profit margin: 20.79%
Growth
- EPS (past 5 years): -38.13%
- EPS (current): 4.76
- EPS estimate (next quarter): 1.96
- EPS growth (this year): 73.01%
- EPS growth (next year): 6.63%
- EPS growth (next 5 years): 25.74%
- EPS growth (quarter-over-quarter): 131.24%
- Sales growth (past 5 years): 5.3%
- Sales growth (quarter-over-quarter): -0.6%
💡 Why invest in Gilead Sciences?
Gilead Sciences offers several compelling reasons to consider investing:
- Strong Product Portfolio: Gilead's established treatments in HIV and hepatitis provide a stable revenue base.
- Innovative Pipeline: The company is investing in next-generation therapies, including long-acting HIV prevention and novel oncology treatments.
- Strategic Acquisitions: Recent acquisitions, like that of CymaBay Therapeutics, aim to bolster Gilead's presence in liver diseases and other therapeutic areas.
🐌 Key considerations before investing in Gilead Sciences
However, prospective investors should weigh the following challenges:
- Earnings Volatility: Significant charges from acquisitions have led to fluctuations in net income.
- Regulatory Risks: Potential changes in healthcare policies, such as cuts to HIV prevention funding, could impact revenues.
- Market Competition: The biopharmaceutical industry is highly competitive, with rivals developing similar therapies that could challenge Gilead's market share.
Final thoughts on Gilead Sciences
Gilead Sciences maintains a strong position in antiviral and oncology treatments, supported by a robust product portfolio and a pipeline of innovative therapies. While recent financial performance has been affected by acquisition-related charges, the company's strategic investments and ongoing research efforts position it for potential long-term growth. Investors should weigh these factors alongside industry risks when considering Gilead as a long-term investment.
Labcorp Holdings (LH)
Labcorp Holdings Inc. is a global life sciences company that provides comprehensive laboratory services and drug development solutions to healthcare providers, pharmaceutical companies, and patients. Founded in 1978 and headquartered in Burlington, North Carolina, Labcorp has established a significant presence in the diagnostics and biopharma sectors. In 2024, the company reported revenues of $13.0 billion, a 7.0% increase from the previous year, and a net income of $746 million, marking a 78.47% rise year-over-year. Labcorp operates through two primary segments: Diagnostics Laboratories and Biopharma Laboratory Services. The Diagnostics Laboratories segment offers routine and specialty testing services, including blood chemistry analyses, urinalyses, and genetic testing, through a vast network of patient service centers and laboratories. The Biopharma Laboratory Services segment provides early development research and central laboratory services, supporting pharmaceutical and biotechnology companies in drug development processes.
Labcorp Holdings financial statements
Analysts recommendation: 1.52
Financial Health
- Return on assets (ROA): 4.28%
- Return on equity (ROE): 8.99%
- Return on investment (ROI): 4.99%
Profitability
- Gross margin: 25.87%
- Operating margin: 8.66%
- Net profit margin: 5.55%
Growth
- EPS (past 5 years): 1.13%
- EPS (current): 8.67
- EPS estimate (next quarter): 4.18
- EPS growth (this year): 10.29%
- EPS growth (next year): 9.6%
- EPS growth (next 5 years): 9.81%
- EPS growth (quarter-over-quarter): -6.22%
- Sales growth (past 5 years): 3.87%
- Sales growth (quarter-over-quarter): 5.3%
💡 Why invest in Labcorp Holdings?
Labcorp Holdings Inc. offers several compelling reasons to consider investing:
- Strong Market Position: Labcorp is a leading provider of diagnostic and drug development services, with a broad portfolio catering to various healthcare needs.
- Robust Financial Performance: The company demonstrated significant revenue and net income growth in 2024, indicating operational efficiency and market demand.
- Strategic Acquisitions: Labcorp has expanded its capabilities through acquisitions, such as the purchase of certain laboratory testing businesses from OPKO Health, enhancing its services in reproductive and women's health.
- Innovation and Expansion: The company continues to invest in expanding its test menu and entering new therapeutic areas, including oncology, women's health, autoimmune diseases, and neurology.
🐌 Key considerations before investing in Labcorp Holdings
However, prospective investors should weigh the following challenges:
- Regulatory Risks: Operating in the healthcare sector, Labcorp is subject to stringent regulations, which can impact operations and profitability.
- Market Competition: The diagnostics and drug development industries are highly competitive, with pressure from both large national laboratories and emerging players.
- Integration Challenges: Mergers and acquisitions, while beneficial, can pose integration risks and potential disruptions.
- Economic Sensitivity: Labcorp's business can be influenced by macroeconomic factors that affect healthcare spending and pharmaceutical research investments.
Final thoughts on Labcorp Holdings
Labcorp's strong market position, diversified service offerings, and robust financial performance make it a compelling player in the diagnostics and drug development industries. While regulatory and competitive challenges exist, the company's strategic initiatives and focus on innovation position it well for sustained growth.
Molina Healthcare (MOH)
Molina Healthcare is a managed care company that provides health insurance services primarily to individuals and families eligible for government-sponsored healthcare programs like Medicaid and Medicare. The company was founded in 1980 by Dr. C. David Molina in Long Beach, California. Originally established as a single clinic serving low-income patients, Molina Healthcare has expanded into a nationwide provider of comprehensive health plans.
The company's core business revolves around offering Medicaid, Medicare Advantage, and Marketplace health plans across multiple U.S. states. Molina Healthcare focuses on improving access to quality care for underserved populations by partnering with healthcare providers, state governments, and community organizations. With a strong emphasis on cost-effective care management and patient-centered services, Molina continues to grow its footprint in the managed care industry.
Molina Healthcare financial statements
Analysts recommendation: 2.42
Financial Health
- Return on assets (ROA): 7.37%
- Return on equity (ROE): 26.72%
- Return on investment (ROI): 14.56%
Profitability
- Gross margin: N/A
- Operating margin: 4.05%
- Net profit margin: 2.81%
Growth
- EPS (past 5 years): 12.22%
- EPS (current): 20.7
- EPS estimate (next quarter): 6.2
- EPS growth (this year): 8.07%
- EPS growth (next year): 15.55%
- EPS growth (next 5 years): 12.8%
- EPS growth (quarter-over-quarter): 5.33%
- Sales growth (past 5 years): 19.92%
- Sales growth (quarter-over-quarter): 12.24%
💡 Why invest in Molina Healthcare?
Molina Healthcare offers several potential advantages for investors seeking exposure to the healthcare sector:
- Focus on Underserved Populations: The company serves a significant and growing population reliant on government-funded healthcare programs.
- Growth Potential: Expansion into new markets and growth in Medicaid and Medicare enrollment can drive revenue growth.
- Government Programs: Reliance on government programs provides a stable revenue stream, reducing exposure to economic downturns.
- Social Impact Investing: For investors interested in socially responsible investing, Molina Healthcare aligns with the goal of improving healthcare access.
🐌 Key considerations before investing in Molina Healthcare
However, before investing in Molina Healthcare, it's crucial to consider these potential challenges:
- Regulatory Environment: The healthcare industry is heavily regulated, with changes in government policies impacting reimbursement rates and program eligibility.
- Economic Conditions: Economic downturns can affect state budgets, impacting Medicaid funding and enrollment.
- Competition: The managed care industry is competitive, with both established players and new entrants vying for market share.
- Healthcare Reform: Changes in healthcare policies can significantly impact the company's business model and financial performance.
Final thoughts on Molina Healthcare
Molina Healthcare's focus on underserved populations, its role in expanding healthcare access, and the potential for growth in government-funded programs make it an attractive investment for those seeking exposure to the healthcare sector. However, the complex regulatory environment, economic sensitivity, competition, and potential healthcare reforms necessitate careful consideration. Thorough research on Molina Healthcare's market expansion plans, financial performance, and the overall healthcare industry trends is crucial before investing.
Quest Diagnostics (DGX)
Quest Diagnostics is a leading provider of diagnostic information services, offering a broad range of laboratory testing and related services to patients, physicians, hospitals, and insurers. Founded in 1967 and headquartered in Secaucus, New Jersey, the company has established a significant presence in the U.S. healthcare sector. In 2024, Quest reported revenues of $9.87 billion, a 6.7% increase from the previous year, and net income of $871 million, up 1.88% year-over-year. The company's core business is structured around two primary segments: Diagnostic Information Services (DIS) and Diagnostic Solutions (DS). DIS encompasses routine clinical testing, advanced diagnostics—including genetic and genomic testing—and health and wellness services for employers and insurers. DS focuses on developing and commercializing diagnostic products and services, including esoteric testing and companion diagnostics.
Quest Diagnostics financial statements
Analysts recommendation: 2.19
Financial Health
- Return on assets (ROA): 6%
- Return on equity (ROE): 13.35%
- Return on investment (ROI): 6.69%
Profitability
- Gross margin: 31.71%
- Operating margin: 14.38%
- Net profit margin: 8.78%
Growth
- EPS (past 5 years): 4.04%
- EPS (current): 7.91
- EPS estimate (next quarter): 2.57
- EPS growth (this year): 8.65%
- EPS growth (next year): 8.36%
- EPS growth (next 5 years): 8.27%
- EPS growth (quarter-over-quarter): 12.47%
- Sales growth (past 5 years): 5.68%
- Sales growth (quarter-over-quarter): 12.09%
💡 Why invest in Quest Diagnostics?
Quest Diagnostics Incorporated offers several compelling reasons to consider investing:
- Strong Market Position: As one of the largest diagnostic testing providers in the U.S., Quest has a substantial market share and extensive network.
- Diversified Service Offerings: The company's broad range of services, from routine tests to advanced diagnostics, caters to various healthcare needs.
- Consistent Financial Performance: Quest has demonstrated steady revenue and income growth, with a 6.7% revenue increase in 2024.
- Strategic Acquisitions: The company has expanded its capabilities and market reach through targeted acquisitions, such as the pending acquisition of LifeLabs.
🐌 Key considerations before investing in Quest Diagnostics
However, prospective investors should weigh the following challenges:
- Regulatory Risks: The healthcare industry is subject to stringent regulations, which can impact operations and profitability.
- Dependence on U.S. Market: With a primary focus on the U.S., Quest may be vulnerable to domestic economic and policy changes.
- Competitive Pressure: The diagnostic testing market is highly competitive, with pressure from both large national laboratories and regional players.
- Integration Challenges: Mergers and acquisitions, while beneficial, can pose integration risks and potential disruptions.
Final thoughts on Quest Diagnostics
Quest Diagnostics' robust market position, diversified service offerings, and consistent financial performance make it a compelling player in the diagnostic testing industry. While regulatory and competitive challenges exist, the company's strategic initiatives and focus on innovation position it well for sustained growth.
If you are interested in other stock categories, check out my other lists of the best large-cap utility, tech, semiconductor, retail, industrial, healthcare, financial, energy, basic materials stocks.