Best mid-cap healthcare stocks to invest in 2026

Mid-cap healthcare blends innovation with scalability, offering investors exposure to diverse medical advances. These companies expand access, improve outcomes, and compound growth through focused execution.

Telix Pharmaceuticals develops radiopharmaceuticals that diagnose and treat cancer with targeted precision, pairing imaging agents with therapeutic delivery. Krystal Biotech commercializes gene therapies for rare skin diseases using its HSV-1 platform, advancing patient care with validated, scalable genetic medicine. Hims & Hers Health operates a subscription telehealth platform across men’s and women’s care, dermatology, mental health, and weight management.

These mid-cap healthcare leaders combine disciplined execution with durable growth potential. Our 2025 outlook highlights resilient operators positioned to compound value across niches.

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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:

  • Krystal Biotech (NYSE:KRYS)

    Krystal Biotech is a biotechnology company focused on developing gene therapy treatments for rare and serious skin diseases. Founded in 2016 and headquartered in Pittsburgh, Pennsylvania, the company specializes in leveraging its proprietary HSV-1-based gene delivery platform to create transformative treatments. Krystal Biotech is dedicated to advancing genetic medicine, with a strong emphasis on addressing unmet medical needs in dermatology and beyond.

    The company`s lead product, Vyjuvek, is a breakthrough gene therapy designed to treat dystrophic epidermolysis bullosa (DEB), a rare and debilitating skin disorder. Krystal Biotech`s pipeline includes other gene therapies targeting dermatological and respiratory conditions, demonstrating its commitment to expanding the applications of genetic medicine. By integrating cutting-edge science with a patient-centric approach, Krystal Biotech continues to push the boundaries of innovation in gene therapy.

    Krystal Biotech financial statements

    Analysts recommendation: 1.17

    Financial Health

    • Return on assets (ROA): 8.44%
    • Return on equity (ROE): 18.91%
    • Return on investment (ROI): 17.36%

    Profitability

    • Gross margin: 94.08%
    • Operating margin: 41.33%
    • Net profit margin: 52.64%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 6.67
    • EPS estimate (next quarter): 1.5
    • EPS growth (this year): 11.6%
    • EPS growth (next year): 21.3%
    • EPS growth (next 5 years): 49.8%
    • EPS growth (quarter-over-quarter): 192.66%
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 17.5%

    💡 Why invest in Krystal Biotech?

    181 shows compelling qualities that make it stand out in its market sector for potential long-term investors effectively:

    • FDA Commercial Success: Krystal Biotech achieved FDA approval for Vyjuvek, the first gene therapy for dystrophic epidermolysis bullosa, generating significant revenue streams and validating their HSV-1 delivery platform technology.
    • Orphan Disease Focus: The company targets rare skin diseases with substantial unmet medical needs, securing orphan drug designations that provide market exclusivity, premium pricing, and reduced regulatory barriers.
    • Proprietary Platform Technology: Krystal`s proprietary HSV-1-based gene delivery system enables multiple therapeutic applications across dermatological and respiratory conditions, creating pipeline expansion opportunities.
    • Exceptional Strong Financials: The company demonstrates impressive profitability metrics with high gross margins and strong cash generation, providing financial stability for continued research and development investments.

    🐌 Key considerations before investing in Krystal Biotech

    Even the most promising genetic medicines face scientific and commercial challenges that can impact long-term success:

    • Gene Therapy Risks: Gene therapy development involves complex manufacturing processes, potential safety concerns, and uncertain clinical outcomes that could delay or prevent successful commercialization of pipeline candidates.
    • Rare Disease Markets: Rare disease markets have inherently small patient populations, limiting revenue potential and requiring premium pricing strategies that may face reimbursement challenges from healthcare systems.
    • Competitive Threats Intensifying: Large pharmaceutical companies and specialized biotechnology firms increasingly compete in gene therapy markets, potentially challenging Krystal`s market position and pricing power.
    • Regulatory Complexity Pressures: Gene therapies face stringent regulatory oversight and evolving safety requirements that can increase development costs, extend approval timelines, and create compliance challenges.

    Final thoughts on Krystal Biotech

    Krystal Biotech's FDA-approved Vyjuvek and strong profitability demonstrate execution in rare disease gene therapy. Its proprietary platform and orphan focus offer durable advantages in genetic medicine. Investors should consider development, reimbursement, and competitive risks inherent to emerging gene therapies.

  • LeMaitre Vascular (NYSE:LMAT)

    LeMaitre Vascular is a medical device company specializing in products for the treatment of vascular disease. Founded in 1983 and headquartered in Burlington, Massachusetts, the company focuses on developing and manufacturing innovative solutions for surgeons treating peripheral vascular conditions. LeMaitre Vascular serves a global market, offering a range of devices designed to improve patient outcomes in vascular surgery.

    The company`s product portfolio includes grafts, stents, balloons, patches, and biologic implants used in procedures such as bypass surgery and vessel repair. With a strong emphasis on research and development, LeMaitre Vascular continually expands its offerings through acquisitions and in-house innovation. By maintaining close relationships with vascular surgeons and investing in cutting-edge medical technologies, the company remains a leader in the field of vascular surgery solutions.

    LeMaitre Vascular financial statements

    Analysts recommendation: 2

    Financial Health

    • Return on assets (ROA): 7.94%
    • Return on equity (ROE): 15.02%
    • Return on investment (ROI): 8.63%

    Profitability

    • Gross margin: 70.97%
    • Operating margin: 25.41%
    • Net profit margin: 22.14%

    Growth

    • EPS (past 5 years): 16.99%
    • EPS (current): 2.32
    • EPS estimate (next quarter): 0.57
    • EPS growth (this year): 53.6%
    • EPS growth (next year): 8.94%
    • EPS growth (next 5 years): 12.77%
    • EPS growth (quarter-over-quarter): 15.66%
    • Sales growth (past 5 years): 13.4%
    • Sales growth (quarter-over-quarter): 11.4%

    💡 Why invest in LeMaitre Vascular?

    35 presents fundamental strengths that position it well for investors seeking stable returns and growth prospects:

    • Vascular Virtuoso: LeMaitre boasts a legendary pedigree in peripheral vascular devices, specializing in innovative solutions for treating blockages and improving blood flow to the legs and feet. This leadership in limb salvage translates to consistent demand and predictable revenue streams, laying a solid foundation for future growth.
    • Beyond Basics: Recognizing the diverse needs of vascular patients, LeMaitre expands its offerings, developing minimally invasive stents, vein closure systems, and advanced diagnostic tools. This strategic diversification mitigates risk and unlocks diverse avenues for growth beyond traditional vascular surgery.
    • Innovation Alchemist: From biocompatible materials to AI-powered procedural guidance, LeMaitre invests heavily in R&D, striving to stay ahead of the curve with solutions that redefine vascular interventions. This commitment to innovation ensures its offerings remain relevant and future-proofs its operations.
    • Global Healing Chorus: With operations spanning continents, LeMaitre caters to diverse vascular needs worldwide and unlocks international growth potential. This global reach provides access to emerging markets with growing populations facing age-related vascular diseases, further bolstering its future prospects.

    🐌 Key considerations before investing in LeMaitre Vascular

    Before investing in 35, consider these headwinds that could impact future performance and investment returns comprehensively:

    • Valuation Concerns: Like many established medical device companies, LeMaitre`s stock can be volatile, and the current price might reflect expectations of future regulatory approvals and clinical trial outcomes. A cautious approach with a patient, long-term perspective is wise.
    • Regulatory Headwinds: Evolving regulations surrounding medical device approvals and reimbursement policies can impact LeMaitre`s market access and profitability. Close monitoring of regulatory developments and their impact on the sector is crucial.
    • Competition Intensifies: Larger established players and nimble start-ups are vying for market share in the vascular space, challenging LeMaitre`s competitive edge. Stay informed about industry trends and how LeMaitre plans to differentiate itself.
    • Healthcare Jitters: Macroeconomic factors like healthcare reforms and insurance coverage changes can impact patient access to treatment and indirectly affect LeMaitre`s sales. Diversification in your portfolio mitigates this risk.

    Final thoughts on LeMaitre Vascular

    LeMaitre`s clinical leadership, diversifying offerings, commitment to innovation, and global reach paint a potentially promising picture for long-term investors seeking exposure to the dynamic medical device sector. However, the volatile nature of the stock, regulatory headwinds, intensifying competition, and healthcare uncertainties warrant a measured approach. Thorough research, analysis of LeMaitre`s future plans and the medical device landscape, and a clear understanding of your risk tolerance are crucial before joining this medical expedition. Remember, navigating the intricate terrain of medical device stocks requires both a discerning eye for cutting-edge solutions and a balanced perspective on potential challenges. Choose wisely, and your portfolio might just find itself pumping with the renewed health brought by LeMaitre Vascular.

  • Merit Medical Systems (NYSE:MMSI)

    Merit Medical Systems is a global manufacturer and distributor of medical devices used primarily in interventional, diagnostic, and therapeutic procedures. Founded in 1987 by Fred P. Lampropoulos and headquartered in South Jordan, Utah, the company has expanded its product portfolio and global reach to become a key player in the medical technology industry. Over the years, Merit Medical has built a reputation for innovation and quality manufacturing in the interventional medicine space.

    The company`s core business focuses on developing and supplying a wide range of medical products, including catheters, guide wires, embolotherapy devices, and hemostasis management tools. Merit Medical serves hospitals, healthcare providers, and specialty clinics worldwide, emphasizing innovation and high-quality manufacturing to improve patient outcomes. Its commitment to advancing minimally invasive procedures has positioned it as a leader in the interventional medicine space, with products used in cardiovascular, peripheral vascular, and oncology procedures.

    Merit Medical Systems financial statements

    Analysts recommendation: 1.36

    Financial Health

    • Return on assets (ROA): 4.28%
    • Return on equity (ROE): 8.3%
    • Return on investment (ROI): 5.06%

    Profitability

    • Gross margin: 48.47%
    • Operating margin: 11.1%
    • Net profit margin: 8.02%

    Growth

    • EPS (past 5 years): 83.71%
    • EPS (current): 1.95
    • EPS estimate (next quarter): 0.95
    • EPS growth (this year): -4.2%
    • EPS growth (next year): 7.48%
    • EPS growth (next 5 years): 8.17%
    • EPS growth (quarter-over-quarter): -3.06%
    • Sales growth (past 5 years): 6.38%
    • Sales growth (quarter-over-quarter): 13%

    💡 Why invest in Merit Medical Systems?

    192 presents fundamental strengths that position it well for investors seeking stable returns and growth prospects:

    • Interventional Focus Specialization: Merit Medical specializes in interventional medical devices including catheters, guide wires, and embolotherapy products that enable minimally invasive procedures, benefiting from growing demand.
    • Product Innovation Drive: The company invests heavily in R&D to develop innovative medical devices and technologies, maintaining competitive advantages through continuous product improvements and new introductions.
    • Global Distribution Network: Merit Medical operates worldwide with manufacturing facilities and distribution networks across multiple continents, providing access to growing international healthcare markets and geographic diversification.
    • Recurring Revenue Streams: The company generates stable revenue streams through disposable medical devices and consumable products that require regular replacement, creating predictable demand patterns from healthcare providers.

    🐌 Key considerations before investing in Merit Medical Systems

    However, investors should carefully consider the challenges and risks facing 192 in its competitive landscape:

    • Regulatory Complexity Burdens: Merit Medical operates in heavily regulated markets requiring FDA approvals and international certifications, creating lengthy development timelines, compliance costs, and approval delays.
    • Competitive Pressure Dynamics: The medical device industry faces intense competition from established healthcare giants and innovative startups, pressuring margins and requiring continuous R&D investments to maintain market position.
    • Healthcare Spending Constraints: The company`s performance depends on healthcare capital expenditures and procedure volumes, making it vulnerable to budget constraints, reimbursement changes, and economic downturns affecting hospital spending.
    • Product Lifecycle Management: Medical devices face finite product lifecycles and require continuous innovation to maintain relevance, creating ongoing R&D costs and risks associated with new product development and market acceptance.

    Final thoughts on Merit Medical Systems

    Merit Medical Systems' specialization in interventional devices and steady product innovation support participation in minimally invasive care. Global distribution and consumable revenue enhance resilience across procedures. Investors should weigh regulatory demands and competitive pressures in the medical device sector.

  • Hims & Hers Health (NYSE: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, women`s health, 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.

    Hims & Hers Health financial statements

    Analysts recommendation: 2.78

    Financial Health

    • Return on assets (ROA): 5.54%
    • Return on equity (ROE): 26.21%
    • Return on investment (ROI): 7.89%

    Profitability

    • Gross margin: 75.01%
    • Operating margin: 1.97%
    • Net profit margin: 6.05%

    Growth

    • EPS (past 5 years): 17.22%
    • EPS (current): 0.53
    • EPS estimate (next quarter): 0.04
    • EPS growth (this year): -80.3%
    • EPS growth (next year): 31.83%
    • EPS growth (next 5 years): 14.91%
    • EPS growth (quarter-over-quarter): -80.29%
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 49.2%

    💡 Why invest in Hims & Hers Health?

    288 shows compelling qualities that make it stand out in its market sector for potential long-term investors methodically:

    • Rapid Revenue Growth: The company posted a 69% revenue increase in 2024, reflecting product-market fit, efficient marketing, and rising brand recognition as consumers embrace convenient, accessible virtual care.
    • First Profitable Year: Delivering $126 million in net income on $1.5 billion of revenue in 2024 shows Hims & Hers can reach scale economics while investing in technology, clinical capacity, and new service lines.
    • Expanding Subscriber Base: With 2.2 million subscribers at the end of 2024, up 45% year over year, the platform gains deeper cohorts, richer engagement data, and a larger base for cross-selling adjacent healthcare offerings.
    • Diversified Service Offerings: A broad menu across men's and women's health, dermatology, mental health, and weight-management reduces reliance on any single category and supports long-term growth as patients move through life stages.

    🐌 Key considerations before investing in Hims & Hers Health

    However, investors should carefully consider the challenges facing 288 in its competitive market landscape effectively:

    • Telehealth Regulatory Challenges: Compounded weight-loss treatments, evolving telehealth rules, and differing state-level requirements draw scrutiny from regulators and could restrict offerings, increase compliance costs, or slow innovation.
    • Intense Market Competition: Telehealth rivals, traditional providers, and digital pharmacies compete for similar patients, increasing acquisition costs and raising the bar for clinical quality, brand trust, and differentiated experiences.
    • Subscription Model Dependence: Dependence on subscription revenue exposes results to churn and pricing sensitivity, requiring product refresh, personalized engagement, and careful pricing tests to sustain lifetime economics.
    • Public Perception Risks: Executive stock sales, debate over compounded medications, and scrutiny of direct-to-consumer health marketing can influence public perception, regulatory posture, and partner willingness to engage.

    Final thoughts on Hims & Hers Health

    Hims & Hers Health`s rapid revenue expansion, first year of profitability, and growing subscriber base underscore its potential as a scaled direct-to-consumer telehealth platform. At the same time, regulatory scrutiny, competitive intensity, and subscription-model sensitivity introduce execution risks that management must carefully navigate. Like a virtual clinic balancing convenience with clinical rigor, the company`s long-term success depends on sustaining trust while profitably expanding its menu of accessible digital care solutions.

  • Topicus (V:TOI)

    Topicus.com Inc. is a leading Canadian technology company that operates as a constellation of vertical market software businesses, providing mission-critical software solutions to specialized industries including healthcare, education, and professional services. Spun off from Constellation Software in 2021, Topicus focuses on acquiring, developing, and managing software companies that serve niche markets with high switching costs and recurring revenue models. The company has established itself as a prominent player in the vertical market software space through its disciplined acquisition strategy and operational excellence in managing diverse software portfolios.

    The company`s core strategy revolves around acquiring small to medium-sized software businesses that dominate their respective vertical markets, particularly in Europe and other international markets outside North America. Topicus operates through a decentralized model where acquired companies maintain their operational independence while benefiting from the parent company`s capital allocation expertise and best practices. With the continued digitalization of specialized industries and the growing demand for industry-specific software solutions, Topicus is well-positioned to capitalize on consolidation opportunities in the fragmented vertical market software landscape while delivering sustainable growth and value creation.

    Topicus financial statements

    Analysts recommendation: 2.3

    Financial Health

    • Return on assets (ROA): 7.15%
    • Return on equity (ROE): 8.02%
    • Return on investment (ROI): 15.6%

    Profitability

    • Gross margin: 36.27%
    • Operating margin: 15.34%
    • Net profit margin: 1.76%

    Growth

    • EPS (past 5 years): 21.3%
    • EPS (current): 0.5
    • EPS estimate (next quarter): 45.8
    • EPS growth (this year): 51.6%
    • EPS growth (next year): 14.2%
    • EPS growth (next 5 years): 16.8%
    • EPS growth (quarter-over-quarter): 19.4%
    • Sales growth (past 5 years): 24.6%
    • Sales growth (quarter-over-quarter): 24.2%

    💡 Why invest in Topicus?

    343 presents fundamental strengths that position it well for investors seeking stable returns and growth prospects:

    • Market Focus Specialization: Topicus targets niche software markets with high switching costs and recurring revenue, providing defensive business characteristics and predictable cash flow generation from specialized industries.
    • Proven Acquisition Expertise: The company leverages experienced management team`s track record in identifying, acquiring, and integrating vertical market software businesses while maintaining operational excellence and growth momentum.
    • Decentralized Operating Model: Topicus maintains a hands-off approach that preserves entrepreneurial culture and domain expertise within acquired companies while providing capital and strategic guidance for sustainable growth.
    • International Market Expansion: The company focuses on European and international markets outside North America, accessing fragmented software markets with significant consolidation opportunities and less competition from larger acquirers.

    🐌 Key considerations before investing in Topicus

    Before investing in 343, consider these headwinds that could impact future performance and investment returns:

    • Acquisition Valuation Pressure: Increasing competition for quality software assets has driven up acquisition multiples, potentially reducing future returns and making it challenging to find attractively priced acquisition targets.
    • Portfolio Integration Risk: Successfully managing a diverse portfolio of acquired companies requires exceptional operational capabilities, and integration failures could impact overall performance and growth trajectory.
    • Market Concentration Exposure: Heavy focus on European markets creates geographic concentration risk and exposure to regional economic conditions, regulatory changes, and currency fluctuation impacts on financial performance.
    • Capital Allocation Dependency: The company`s success depends heavily on management`s ability to continuously identify and execute profitable acquisitions while maintaining disciplined capital allocation and avoiding value-destructive deals.

    Final thoughts on Topicus

    Topicus`s vertical market focus strategy, proven acquisition expertise, decentralized operating model, and international market expansion create compelling opportunities for investors seeking exposure to the growing vertical market software consolidation trend. However, the company`s acquisition valuation pressures, integration risks, market concentration exposure, and capital allocation dependency require careful evaluation of the inherent complexities in software roll-up investing. Like a skilled portfolio manager who builds value through strategic acquisitions, Topicus offers growth potential for investors who understand both the opportunities and challenges of the specialized software acquisition business model.

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