Best mega-cap healthcare stocks to invest in 2025

Mega-cap healthcare companies play a pivotal role in advancing medical innovation, improving patient outcomes, and addressing global health challenges. Their dominant market positions, robust pipelines, and diversified portfolios make them prime choices for long-term investors seeking stability and growth in the dynamic healthcare sector.

Eli Lilly and Company leads the way with groundbreaking advancements in treatments for diabetes and Alzheimer's, supported by a strong pipeline of innovative therapies. AbbVie combines a strong presence in immunology and oncology with blockbuster drugs like Humira, Skyrizi, and Rinvoq treating autoimmune diseases. AstraZeneca focuses on oncology, cardiovascular, renal, metabolism, respiratory, and immunology with cutting-edge drug development and strategic partnerships worldwide.

As 2025 draws to a close, these mega-cap healthcare stocks continue to represent compelling opportunities for investors seeking innovation and financial performance. Their market leadership, robust research pipelines, and global reach make them attractive long-term holdings in the healthcare sector.

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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 stocks mentioned in this article.

Now, let`s take a closer look at each of the companies:

  • Eli Lilly and Company (NYSE:LLY)

    Eli Lilly and Company is a global pharmaceutical leader headquartered in Indianapolis, Indiana. Founded in 1876 by Colonel Eli Lilly, the company has a storied history of innovation in medicine, earning a reputation for improving lives through groundbreaking research. With a presence in over 120 countries, Eli Lilly focuses on addressing some of the world`s most pressing health challenges.

    The company specializes in developing, manufacturing, and marketing pharmaceutical products for a wide range of medical conditions. Its areas of expertise include diabetes, oncology, immunology, and neuroscience, with well-known products like Trulicity, Humalog, and Verzenio. Committed to scientific discovery and patient-centered care, Eli Lilly continues to invest in research and development to bring innovative therapies to patients worldwide.

    Eli Lilly and Company financial statements

    Analysts recommendation: 1.58

    Financial Health

    • Return on assets (ROA): 19.33%
    • Return on equity (ROE): 96.82%
    • Return on investment (ROI): 28.47%

    Profitability

    • Gross margin: 83.03%
    • Operating margin: 44.41%
    • Net profit margin: 30.99%

    Growth

    • EPS (past 5 years): 18.77%
    • EPS (current): 20.22
    • EPS estimate (next quarter): 7.05
    • EPS growth (this year): 80.26%
    • EPS growth (next year): 32.73%
    • EPS growth (next 5 years): 42.5%
    • EPS growth (quarter-over-quarter): 479.29%
    • Sales growth (past 5 years): 15.08%
    • Sales growth (quarter-over-quarter): 53.87%

    💡 Why invest in Eli Lilly and Company?

    Lilly`s dominant position in diabetes, commitment to cutting-edge biotechnology, focus on personalized medicine, and global reach create a compelling case for investors seeking exposure to the evolving healthcare landscape:

    • Diabetes Treatment Leader: Lilly champions the fight against diabetes with market-leading drugs and a robust pipeline. This leadership translates to consistent revenue streams and a loyal patient base for future growth.
    • Biotech Innovation Focus: Beyond diabetes, Lilly invests heavily in cutting-edge biotechnologies like gene editing and immunotherapy. This commitment to innovation unlocks diverse growth avenues and future-proofs its offerings.
    • Personalized Medicine Pioneer: Lilly champions personalized medicine, tailoring treatments to individual patients` needs. This precision-driven approach enhances treatment efficacy and expands market reach significantly.
    • Global Expansion Strategy: With operations spanning continents, Lilly taps into diverse healthcare needs and unlocks international growth potential. This global reach provides access to emerging markets with burgeoning demands.

    🐌 Key considerations before investing in Eli Lilly and Company

    While Lilly shines bright with its medical might, there are some potential roadblocks to consider before embarking on this medical odyssey:

    • Premium Stock Valuation: Like many established pharmaceutical companies, LLY`s stock currently sits near all-time highs. This might limit immediate gains, and a cautious approach with a patient perspective might be wise.
    • Drug Development Rollercoaster: Success in the pharmaceutical space hinges on successful clinical trials and regulatory approvals. While Lilly has a strong track record, drug development failures can impact future performance.
    • Intense Market Competition: Rival drugmakers and nimble biotech startups are vying for market share, requiring Lilly to constantly innovate. Stay informed about competitor advancements and how Lilly plans to stay ahead.
    • Pricing Pressure Increases: Governments and healthcare providers are increasingly scrutinizing drug prices, potentially impacting Lilly`s profitability. Close monitoring of regulatory pressure and pricing trends is crucial for investors.

    Final thoughts on Eli Lilly and Company

    Lilly`s diabetes leadership, unwavering investment in biotech, and global reach paint a promising picture for long-term healthcare investors. However, high valuation, drug development uncertainties, and pricing pressures warrant a measured approach. Thorough research and understanding of your risk tolerance are crucial before investing in this pharmaceutical leader.

  • AbbVie (NYSE:ABBV)

    AbbVie is a global biopharmaceutical company focused on discovering and delivering innovative medicines for some of the world`s most complex diseases. Founded in 2013 as a spin-off from Abbott Laboratories, the company is headquartered in North Chicago, Illinois. Since its inception, AbbVie has grown into a major player in the pharmaceutical industry, with a strong presence in immunology, oncology, neuroscience, and virology.

    The company`s portfolio includes blockbuster drugs such as Humira, Skyrizi, and Rinvoq, which have been instrumental in treating autoimmune diseases. AbbVie is also a leader in hematologic oncology and neuroscience, with treatments for conditions like leukemia and Parkinson`s disease. By investing heavily in research and development, as well as strategic acquisitions like Allergan in 2020, AbbVie continues to expand its global reach and impact in the healthcare sector.

    AbbVie financial statements

    Analysts recommendation: 1.9

    Financial Health

    • Return on assets (ROA): 1.69%
    • Return on equity (ROE): 138.53%
    • Return on investment (ROI): 3.89%

    Profitability

    • Gross margin: 69.68%
    • Operating margin: 31.95%
    • Net profit margin: 3.94%

    Growth

    • EPS (past 5 years): -14.67%
    • EPS (current): 1.33
    • EPS estimate (next quarter): 3.36
    • EPS growth (this year): 5.05%
    • EPS growth (next year): 36.12%
    • EPS growth (next 5 years): 17.29%
    • EPS growth (quarter-over-quarter): -88.66%
    • Sales growth (past 5 years): 11.11%
    • Sales growth (quarter-over-quarter): 9.1%

    💡 Why invest in AbbVie?

    Several key factors make AbbVie an attractive prospect for investors seeking exposure to the healthcare sector:

    • Advanced Therapy Leadership: AbbVie holds a prominent position in developing and commercializing innovative treatments for various conditions, improving patients` lives through advanced biopharmaceutical solutions.
    • Established Product Portfolio: Blockbuster drugs like Humira generate significant revenue streams for AbbVie, fostering financial stability and funding for future research and development endeavors across therapeutic areas.
    • Research Development Focus: AbbVie prioritizes research and development, constantly innovating and building a robust pipeline of promising new treatments for diverse therapeutic areas including immunology and oncology.
    • Strong Commercial Capabilities: AbbVie leverages its global commercial expertise to effectively market and distribute its medications, ensuring patients worldwide have access to their innovative treatments and therapeutic solutions.

    🐌 Key considerations before investing in AbbVie

    While AbbVie boasts established products and a robust pipeline, investors should consider the challenges in this sector, such as patent expirations and the ever-present focus on drug pricing:

    • Patent Cliff Challenges: The expiration of patents on established drugs like Humira can lead to significant revenue decline if AbbVie fails to successfully replace them with new therapies and market-leading innovations.
    • Drug Pricing Scrutiny: The rising cost of medications is a major concern, and AbbVie faces ongoing pressure to justify the pricing of its drugs from regulators, payers, and patient advocacy groups worldwide.
    • Complex Regulatory Environment: The pharmaceutical industry is heavily regulated, and AbbVie must comply with complex rules governing clinical trials, drug approvals, and marketing practices across multiple global jurisdictions.
    • Clinical Trial Execution: Drug development requires successful clinical trials with uncertain outcomes, creating significant financial risk if promising candidates fail to demonstrate safety and efficacy in late-stage testing.

    Final thoughts on AbbVie

    AbbVie`s established product portfolio, focus on R&D, and strong commercial capabilities create compelling opportunities for investors seeking healthcare sector exposure with proven drug development expertise. However, patent expirations, drug pricing scrutiny, and complex regulatory environments warrant careful evaluation of pharmaceutical industry dynamics and pipeline strength. Like skilled pharmaceutical researchers who balance innovation with commercial success, AbbVie leverages its biopharmaceutical expertise to develop life-changing treatments while navigating the evolving landscape of global healthcare markets.

  • AstraZeneca (NYSE:AZN)

    AstraZeneca PLC is a global biopharmaceutical company focused on the discovery, development, and commercialization of prescription medicines, primarily in oncology, cardiovascular, renal, metabolism, respiratory, and immunology. Founded in 1999 through the merger of Sweden`s Astra AB and the UK`s Zeneca Group, the company is headquartered in Cambridge, United Kingdom. Over the years, AstraZeneca has established itself as one of the world`s leading pharmaceutical firms, delivering innovative treatments that address some of the most pressing medical challenges.

    With a strong research and development presence across North America, Europe, and Asia, AstraZeneca is committed to advancing science through cutting-edge drug development and strategic partnerships. The company is known for its groundbreaking work in oncology, with a robust pipeline of targeted therapies that improve patient outcomes. By leveraging advanced biologics, precision medicine, and artificial intelligence, AstraZeneca continues to drive innovation and expand access to life-saving treatments worldwide.

    AstraZeneca financial statements

    Analysts recommendation: 1.53

    Financial Health

    • Return on assets (ROA): 7.68%
    • Return on equity (ROE): 19.76%
    • Return on investment (ROI): 11.77%

    Profitability

    • Gross margin: 72.56%
    • Operating margin: 21.13%
    • Net profit margin: 14.71%

    Growth

    • EPS (past 5 years): 34.53%
    • EPS (current): 2.67
    • EPS estimate (next quarter): 1.06
    • EPS growth (this year): 11.51%
    • EPS growth (next year): 12.96%
    • EPS growth (next 5 years): 12.12%
    • EPS growth (quarter-over-quarter): 28.74%
    • Sales growth (past 5 years): 17.18%
    • Sales growth (quarter-over-quarter): 13.06%

    💡 Why invest in AstraZeneca?

    Several key factors make AstraZeneca an attractive prospect for investors seeking exposure to the growing healthcare sector:

    • Pharmaceutical Industry Leader: AstraZeneca ranks among the top ten pharmaceutical companies globally based on sales, boasting a strong market presence and brand recognition that drives consistent revenue streams.
    • Innovation Research Focus: Their commitment to research and development fuels a steady pipeline of new drugs, ensuring future growth and addressing unmet medical needs across multiple therapeutic areas globally.
    • Diverse Product Portfolio: AstraZeneca offers a wide range of medicines across various therapeutic areas, mitigating risk by not relying on a single product or treatment category for revenue generation effectively.
    • Global Market Accessibility: Their global presence and focus on affordability programs ensure broader access to their medications, improving healthcare outcomes worldwide and expanding market reach significantly.

    🐌 Key considerations before investing in AstraZeneca

    While AstraZeneca`s strong market position, focus on R&D, and diverse product portfolio are strengths, there are challenges to consider in the pharmaceutical industry:

    • Drug Development Risks: The research and development process for new drugs is expensive, time-consuming, and fraught with risk. Not all drugs in development make it to market successfully or generate expected returns.
    • Patent Expiration Concerns: Exclusive marketing rights for certain drugs eventually expire, opening the door to generic competition and potentially impacting revenue streams and profitability margins significantly.
    • Regulatory Compliance Requirements: The pharmaceutical industry is heavily regulated, with strict guidelines for drug development, testing, and marketing, potentially impacting development timelines and costs across global markets.
    • Pricing Affordability Debates: The high cost of some medications can spark debate and government intervention, potentially affecting pricing strategies and profitability in key markets worldwide and impacting revenue growth.

    Final thoughts on AstraZeneca

    AstraZeneca`s strong market position, focus on innovation, and diverse product portfolio create compelling opportunities for long-term healthcare investors. However, drug development risks, patent expiries, and regulatory hurdles warrant careful evaluation. Thorough research and understanding of your risk tolerance are crucial before investing in this pharmaceutical leader.

  • Abbott Laboratories (NYSE:ABT)

    Abbott Laboratories is a global healthcare company specializing in medical devices, diagnostics, nutrition, and branded generic pharmaceuticals. Founded in 1888 and headquartered in Abbott Park, Illinois, the company has established itself as a leader in developing innovative solutions that improve health outcomes worldwide.

    Abbott operates across more than 160 countries, offering a diverse portfolio that includes cutting-edge glucose monitoring systems, cardiovascular devices, rapid diagnostic tests, and well-known nutritional products such as Ensure and Similac. The company is at the forefront of medical advancements, continuously investing in research and development to address some of the most pressing healthcare challenges. With a strong commitment to innovation, quality, and accessibility, Abbott Laboratories continues to shape the future of healthcare, providing life-changing technologies and products that enhance the well-being of millions globally.

    Abbott Laboratories financial statements

    Analysts recommendation: 1.85

    Financial Health

    • Return on assets (ROA): 17.53%
    • Return on equity (ROE): 30.62%
    • Return on investment (ROI): 22.21%

    Profitability

    • Gross margin: 52.09%
    • Operating margin: 18.05%
    • Net profit margin: 31.69%

    Growth

    • EPS (past 5 years): 29.98%
    • EPS (current): 7.97
    • EPS estimate (next quarter): 1.5
    • EPS growth (this year): 10.35%
    • EPS growth (next year): 10.11%
    • EPS growth (next 5 years): 10.37%
    • EPS growth (quarter-over-quarter): -2.54%
    • Sales growth (past 5 years): 5.63%
    • Sales growth (quarter-over-quarter): 6.9%

    💡 Why invest in Abbott Laboratories?

    Abbott`s robust profile makes it a tempting pick for investors seeking exposure to the ever-evolving healthcare sector:

    • Diversified Healthcare Portfolio: Abbott boasts a diversified portfolio spanning diagnostics, medical devices, nutrition, and pharmaceuticals. This leadership translates to consistent revenue streams and mitigates risk effectively.
    • Innovation Leadership Focus: From continuous glucose monitors to next-generation heart valves, Abbott invests heavily in R&D. This commitment to innovation ensures its offerings remain relevant and future-proofs operations.
    • Global Market Presence: With operations spanning continents, Abbott caters to diverse healthcare needs worldwide. This global reach provides access to emerging markets with burgeoning healthcare demands and growth opportunities.
    • Strong Dividend Track: Abbott boasts a strong track record of consistent dividend payments, returning profits to shareholders. This income stream coupled with capital appreciation provides compelling value for investors.

    🐌 Key considerations before investing in Abbott Laboratories

    While Abbott navigates the healthcare labyrinth with its diversified portfolio and innovative solutions, there are some potential side effects to consider before joining this high-stakes journey:

    • Stock Price Volatility: Like many established healthcare companies, ABT`s stock can be volatile. The current price might reflect expectations of future approvals and market trends, requiring a cautious approach.
    • Regulatory Compliance Challenges: Evolving regulations surrounding drug approvals, healthcare reforms, and pricing policies can impact Abbott`s profitability and market access significantly. Close monitoring of developments is crucial.
    • Patent Cliff Exposure: Loss of exclusivity for key drugs due to patent expiry can impact revenue streams. Regularly assessing Abbott`s pipeline and patent expirations is important for understanding future growth.
    • Healthcare Policy Uncertainty: Macroeconomic factors like healthcare reforms and insurance coverage changes can impact patient access to treatment. Diversification in your portfolio mitigates this risk and provides stability.

    Final thoughts on Abbott Laboratories

    Abbott`s diversified portfolio, commitment to innovation, and global reach create compelling opportunities for long-term healthcare investors. However, high valuation, regulatory challenges, and patent considerations warrant a measured approach. Thorough research and understanding of your risk tolerance are crucial before investing in this healthcare leader.

If you are interested in other stock categories, check out my other lists of the best mega-cap tech, semiconductor, retail, healthcare, financial stocks.