Tech giant Nvidia has been one of the hottest stocks over the past couple of years, with its shares more than doubling since 2022. But technology isn't the only place where investors can find excellent investments.

In fact, three healthcare stocks that have outperformed Nvidia since 2022 are TransMedics Group (TMDX 3.17%), Eli Lilly (LLY 1.19%), and Verona Pharma (VRNA 1.04%). Here's a look at how well these stocks have performed, why they have fared so well, and whether they're still good buys today.

1. TransMedics Group: 369%

TransMedics is a fairly small medical device company with a market capitalization of $2.5 billion. The company has developed an organ care platform for which the Food and Drug Administration (FDA) has granted approval; it can transport multiple organs. It's the only multi-organ platform that regulators have approved. It can improve patient outcomes and be a game changer for the business.

The business has been making significant progress in growing its top line over the years, and TransMedics continues to generate impressive numbers. On Monday, the company reported its 2023 fourth-quarter results, and revenue totaling $81.2 million was up 159% year over year. TransMedics also posted a profit of $4 million. For 2024, TransMedics expects its full-year revenue to grow by around 50%, totaling between $360 million and $370 million.

With a lot more growth still on the horizon, it may not be too late to invest in the healthcare stock despite its already impressive gains.

2. Eli Lilly: 183%

Eli Lilly has become the largest healthcare stock in the world after nearly tripling in value since 2022. The big reason for its recent success is tirzepatide, the active ingredient in both Mounjaro, its diabetes drug, and Zepbound, its approved treatment for weight loss. In clinical trials, tirzepatide has helped people lose an astonishing 26.6% of their body weight when patients made significant lifestyle changes while also using the drug.

The hype surrounding anti-obesity treatments has been the catalyst behind its rally over the past couple of years, as Eli Lilly truly has a game changer on its hands. Analysts believe that tirzepatide could generate at least $68 billion in annual revenue at its peak. Just how high that number ends up will depend on what other indications it may get approved for. In clinical trials, tirzepatide has helped treat fatty liver disease, and similar drugs have been associated with helping to reduce the cardiovascular risk for obese people.

There could still be a lot more upside for Eli Lilly's stock simply due to the opportunity for tirzepatide. Although the stock looks expensive, trading at well over 100 times earnings, that doesn't mean it has peaked; Eli Lilly may very well be the first healthcare stock to reach a $1 trillion valuation.

3. Verona Pharma: 156%

Pharmaceutical company Verona Pharma rounds out this list with gains of 156% since 2022. It's the riskiest stock on this list as it doesn't have an approved product just yet, but it's close to the finish line with ensifentrine. The FDA is currently reviewing the company's application for it in treating chronic obstructive pulmonary disease, and a PDUFA date has been set for June 26.

The $1.4 billion stock could have a lot more room to run if regulators give the drug the green light as it could be a blockbuster, with analysts projecting that at its peak, it could bring in $1.5 billion in annual revenue.

Without approval, however, Verona will continue to incur losses and burn through cash as it doesn't have an approved product to rely on for consistent revenue. But with ensifentrine showing encouraging results in clinical trials, there's hope that approval will happen this year.

If you're not OK with taking on some considerable risk, however, you may want to wait on the sidelines with Verona Pharma stock as it's by no means a sure thing; if regulators push back on the treatment and don't end up approving it, that could lead to a sharp sell-off.