What are the best healthcare stocks to buy now?

Many healthcare stocks are good alternatives for investors to buy now. Some top candidates representing various areas of the healthcare sector include Vertex Pharmaceuticals, Intuitive Surgical, TransMedics Group, UnitedHealth Group, and HCA Healthcare.

Is it smart to invest in healthcare?

While investors must decide for themselves whether any sector is a good fit, healthcare could be a smart area for many. Healthcare spending is growing faster than the U.S. GDP as the population ages. This should create significant opportunities for innovative healthcare companies.

Do healthcare stocks do well in a recession?

Many healthcare stocks perform relatively well during a recession. Healthcare products and services are usually needed regardless of economic conditions. However, some healthcare stocks might be more affected by recessions than others.

Are profits from healthcare stocks tax-exempt?

Profits from healthcare stocks aren't tax-exempt. However, nonprofit hospitals (which aren't publicly traded) are exempt from federal and some state and local taxes.

What is the most profitable healthcare company?

Johnson & Johnson (NYSE:JNJ) generates the most profits of any company in the healthcare sector.

Which healthcare stock is undervalued?

Quite a few healthcare stocks could be viewed as undervalued. One notable example is Pfizer (NYSE: PFE), which trades at a low forward price-to-earnings (P/E) ratio of around 9..

Which healthcare stock did Warren Buffett buy?

The most prominent healthcare stock that Warren Buffett bought before stepping down as CEO of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) was UnitedHealth Group (NYSE: UNH). However, Berkshire subsequently sold UnitedHealth after Buffett handed the reins to his successor, Greg Abel. The only healthcare stock in Berkshire's portfolio in mid-2026 was dialysis provider DaVita (NYSE:DVA).

6 Best Healthcare Stocks for 2026 and How to Invest

By Keith Speights – Updated Aug 16, 2026 at 6:52 PM EST | Fact-checked by Frank Bass

Key Points

Global healthcare spending is growing, with $5.3 trillion spent in the U.S. alone.
Investing in diverse healthcare stocks like Vertex Pharmaceuticals offers growth potential.
UnitedHealth Group's expansion and market dominance make it a robust investment choice.

Healthcare stocks are shares of publicly traded companies that provide healthcare products or services. Everybody needs healthcare -- or will, at some point. And, when there’s something everyone needs, there’s a huge opportunity for investors.

About $10 trillion is spent on healthcare globally. More than half -- around $5.3 trillion -- is spent in the U.S. With the healthcare sector growing significantly faster than the overall economy, the numbers will almost certainly be much larger by the end of the decade.

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A graphic showing the four types of healthcare stocks: drug, medical device, payer, and healthcare provider stocks. — Image source: The Motley Fool.

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How can investors profit from this growth? Here’s what you need to know about investing in healthcare stocks.

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6 top healthcare stocks for 2026

Strong companies can be found across all types of healthcare stocks. Here are some top healthcare stocks to buy that represent each type:

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Ticker Information Table
Name and ticker	Current price	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Industry
Vertex Pharmaceuticals (NASDAQ:VRTX)	$552.06	$133.9 billion	Biotechnology
Intuitive Surgical (NASDAQ:ISRG)	$397.72	$138.2 billion	Healthcare Equipment and Supplies
TransMedics Group (NASDAQ:TMDX)	$93.97	$3.1 billion	Healthcare Equipment and Supplies
UnitedHealth Group (NYSE:UNH)	$388.61	$353.6 billion	Healthcare Providers and Services
HCA Healthcare (NYSE:HCA)	$407.05	$89.1 billion	Healthcare Providers and Services
Cardinal Health (NYSE:CAH)	$234.85	$54.7 billion	Healthcare Providers and Services

Data as of Aug 19, 2026. Showing 6 of 6 total entries.

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1. Vertex Pharmaceuticals

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NASDAQ: VRTX

Vertex Pharmaceuticals

Today's Change

(4.52%) $23.87

Current Price

$552.06

Key Data Points

Market Cap

$134B

Day's Range

$532.55 - $553.69

52wk Range

$374.17 - $553.69

Volume

1.4M

Avg Vol

1.6M

Gross Margin

86.12%

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Vertex Pharmaceuticals (VRTX +4.52%) stands out as one of the top biotech stocks on the market. The company primarily focuses on developing drugs that treat the underlying cause of cystic fibrosis (CF), a rare genetic disease that damages the lungs and other organs. Vertex has also expanded beyond CF with gene-editing therapy Casgevy (a one-time treatment for the rare blood disorders sickle cell disease and transfusion-dependent beta-thalassemia) and acute pain therapy Journavx.

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2. Intuitive Surgical

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NASDAQ: ISRG

Intuitive Surgical

Today's Change

(1.67%) $6.54

Current Price

$397.72

Key Data Points

Market Cap

$138B

Day's Range

$394.00 - $405.34

52wk Range

$328.57 - $603.88

Volume

2.1M

Avg Vol

3.1M

Gross Margin

66.66%

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Intuitive Surgical (ISRG +1.67%) is a great example of a medical device stock that also falls into the surgical stock category. The company’s Da Vinci robotic surgical system has been used in more than 20.4 million procedures since its introduction in 1999. Intuitive Surgical also markets Ion, a robotic system for minimally invasive peripheral lung biopsy. Over the long run, the company should have tremendous growth opportunities, as an aging population requires the types of surgical procedures for which Da Vinci is frequently used.

3. TransMedics Group

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NASDAQ: TMDX

TransMedics Group

Today's Change

(3.62%) $3.28

Current Price

$93.97

Key Data Points

Market Cap

$3.1B

Day's Range

$90.15 - $94.99

52wk Range

$60.10 - $156.00

Volume

702.2K

Avg Vol

1.1M

Gross Margin

57.75%

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TransMedics Group (TMDX +3.62%) developed and sells the Organ Care System (OCS), a system for transporting lungs, hearts, and livers intended for transplantation. OCS replicates the human body in many ways, keeping donated organs alive until they can be transplanted. TransMedics also created the National OCS Program (NOP), which provides end-to-end services for organ transplantation, including air transportation.

The company has a major growth opportunity in disrupting the organ transplant market. TransMedics is expanding internationally. It is also developing an OCS version for kidneys. There are more kidney transplants each year than lung, heart, and liver transplants combined.

4. UnitedHealth Group

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NYSE: UNH

UnitedHealth Group

Today's Change

(-1.35%) $-5.32

Current Price

$388.61

Key Data Points

Market Cap

$354B

Day's Range

$386.33 - $396.80

52wk Range

$255.97 - $461.62

Volume

5.3M

Avg Vol

5.9M

Dividend Yield

2.27%

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UnitedHealth Group (UNH -1.35%) is the largest commercial health insurer in the U.S. It also operates one of the biggest pharmacy benefit managers (PBMs) and is a leader in healthcare delivery services.

The company’s size, stability, and dividend make UnitedHealth Group one of the most attractive payer stocks on the market. UnitedHealth Group has also expanded its presence in the healthcare provider market with its 2023 acquisition of home health services provider LHC Group.

5. HCA Healthcare

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NYSE: HCA

HCA Healthcare

Today's Change

(-1.14%) $-4.68

Current Price

$407.05

Key Data Points

Market Cap

$89B

Day's Range

$406.81 - $422.00

52wk Range

$353.99 - $556.52

Volume

1.4M

Avg Vol

1.6M

Gross Margin

15.48%

Dividend Yield

0.73%

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HCA Healthcare (HCA -1.14%) owns and operates 190 hospitals and about 2,500 outpatient facilities, including surgery centers, physician clinics, freestanding emergency rooms, and urgent care centers. It's the largest health system operator in the U.S. HCA also operates healthcare facilities in the U.K. The company continues to grow, in large part through acquisitions.

6. Cardinal Health

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NYSE: CAH

Cardinal Health

Today's Change

(-0.06%) $-0.13

Current Price

$234.85

Key Data Points

Market Cap

$55B

Day's Range

$232.34 - $238.15

52wk Range

$145.87 - $258.30

Volume

1.4M

Avg Vol

2.3M

Gross Margin

3.70%

Dividend Yield

0.87%

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Benefits and risks of investing in healthcare stocks

The key benefits of investing in healthcare stocks include:

Many healthcare stocks have strong long-term growth prospects driven by aging demographics.
Healthcare stocks tend to perform well during economic downturns.
These stocks provide diversification in one of the most important sectors.
Many healthcare stocks offer attractive dividends.

However, there are also risks associated with investing in healthcare stocks, such as:

Drugmakers and medical device makers can fail to secure necessary regulatory approvals for their products.
Many healthcare stocks face significant litigation risk, especially if patients believe their products or services harmed them.
Drugmakers and medical device makers may not be able to convince payers, including health insurers, pharmacy benefit managers, and government agencies, to reimburse patients and healthcare providers for their products and services.
Many healthcare stocks are highly sensitive to Medicare reimbursement levels. Recent changes to Medicare allow the program to negotiate prices for some high-cost drugs with pharmaceutical companies. Some drugmakers' revenues and profits could be negatively affected since Medicare pays less for certain drugs.

Methodology: How these stocks were chosen

The most important criterion for selecting these stocks was that they had to generate most of their revenue from providing healthcare products and/or services. Each of the stocks chosen clearly passed this hurdle.

Size was also important. Healthcare stocks with market caps under $200 million weren't considered. The smallest stock on the list, TransMedics Group, has a market cap of several billion dollars.

The risk-reward proposition offered by each stock was critical as well. While each of the selected stocks faces some risks, their growth prospects make them attractive long-term picks for investors.

The bottom line

The long-term outlook for healthcare stocks appears very good. Aging demographic trends worldwide, combined with advances in technology, should open up tremendous opportunities for healthcare stocks -- and deliver healthy returns for patient investors.

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Investing in healthcare stocks: FAQ

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About the Author

Keith Speights is a contributing Motley Fool healthcare analyst covering publicly traded companies across pharmaceuticals, biotechnology, medical devices, technology, and marijuana. Prior to The Motley Fool, Keith was CEO of Constant Care Technology, a healthcare technology company; vice president of American HealthTech, a healthcare software company; and a director of operations for Blue Cross Blue Shield of Mississippi, a health insurer. He holds a B.S. in Industrial Engineering from Mississippi State University.

TMFFishBiz

Keith Speights has positions in Intuitive Surgical and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Intuitive Surgical, TransMedics Group, and Vertex Pharmaceuticals. The Motley Fool recommends HCA Healthcare and UnitedHealth Group and recommends the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.

6 Best Healthcare Stocks for 2026 and How to Invest

Key Points

6 top healthcare stocks for 2026

1. Vertex Pharmaceuticals

Key Data Points

2. Intuitive Surgical

Key Data Points

3. TransMedics Group

Key Data Points

4. UnitedHealth Group

Key Data Points

5. HCA Healthcare

Key Data Points

6. Cardinal Health

Key Data Points

Benefits and risks of investing in healthcare stocks

Methodology: How these stocks were chosen

The bottom line

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Investing in healthcare stocks: FAQ

About the Author

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Investing in healthcare stocks: FAQ

What are the best healthcare stocks to buy now?

Is it smart to invest in healthcare?

Do healthcare stocks do well in a recession?

Are profits from healthcare stocks tax-exempt?

What is the most profitable healthcare company?

Which healthcare stock is undervalued?

Which healthcare stock did Warren Buffett buy?

1. Vertex Pharmaceuticals

2. Intuitive Surgical

Benefits and risks of investing in healthcare stocks

Methodology: How these stocks were chosen

The bottom line

Related investing topics

6 top healthcare stocks for 2026

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

3. TransMedics Group

4. UnitedHealth Group

5. HCA Healthcare

6. Cardinal Health

How to buy healthcare stocks