There's a strong case that healthcare is the most important sector in the stock market. These companies deliver innovative therapies and medical technologies that are often life-saving.
Investors stand to benefit as healthcare leaders and emerging players address the needs of an aging global population and the rising prevalence of chronic diseases.
Here are 10 under-the-radar healthcare stocks that could be great buys for your portfolio.
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1. Certara
Certara (CERT -0.22%) is poised to capitalize on the transformation in medicine driven by artificial intelligence (AI), providing bio-simulation software and services that accelerate drug development.
The company plays a crucial role in the pharmaceutical industry. Over 90% of all novel drugs approved by the Food and Drug Administration (FDA) since 2014 have leveraged its technology. Its AI-driven solutions enhance research and development (R&D), enabling faster and more precise drug development. Certara deserves a closer look by investors seeking to tap into the AI-driven healthcare transformation.
2. Beam Therapeutics
Beam Therapeutics (BEAM -1.98%) is a clinical-stage biotech pioneering precision-based gene editing therapies for genetic diseases, including sickle cell disease. Its innovative technology enables precise single-nucleotide DNA changes, potentially offering a safer alternative to traditional CRISPR genetic engineering.
Beam has reported early success in gene correction, with its lead candidate, BEAM-101, in phase 1/2 trials for sickle cell disease. While the company still has a lot to prove, its differentiated approach and clinical progress position it for remarkable growth in the long term.
3. Inspire Medical Systems
Inspire Medical Systems (INSP 2.15%) develops implantable neurostimulation devices for obstructive sleep apnea, offering its FDA-approved Inspire therapy as a noninvasive alternative to CPAP machines.
In its first quarter (the period ended March 31), revenue surged 23% year over year to $201 million, driven by growing U.S. adoption and new international approvals. With increasing demand for sleep apnea treatment, Inspire has a significant opportunity to capture market share.
4. Insulet
Insulet (PODD 1.03%) specializes in tubeless insulin pump technology. Its Omnipod system simplifies diabetes management for Type 1 and insulin-dependent Type 2 patients globally, offering convenience and improved outcomes.
With a 2025 revenue growth target of 19% to 22%, the company is poised for continued expansion, particularly in underpenetrated international markets. Insulet's strong growth trajectory positions it to reward shareholders further.
5. Krystal Biotech
Krystal Biotech (KRYS -2.62%) focuses on rare skin diseases. Its FDA-approved gene therapy, Vyjuvek, for dystrophic epidermolysis bullosa (fragile skin that blisters easily) is expected to approach $400 million in revenue this year, solidifying its position as a best-in-class treatment.
Vyjuvek's success validates Krystal's R&D, bolstering confidence in its pipeline and unlocking added market potential.
6. LifeMD
LifeMD (LFMD 1.55%) operates a telehealth platform providing specialized virtual care in weight loss, men's health, and dermatology. A partnership with Novo Nordisk to offer Wegovy, a leading GLP-1 treatment, has driven impressive growth, with first-quarter revenue surging 49% year over year for the period ended March 31.
LifeMD could expand its growing user base into a comprehensive health management ecosystem to fuel growth and solidify its telehealth leadership.
7. Option Care Health
Option Care Health (OPCH 0.75%) is the leading U.S. provider of home and alternative-site infusion services, delivering crucial therapies for chronic and acute conditions like cancer, immune deficiencies, and infections. As the healthcare industry shifts toward more personalized and cost-effective care, Option Care Health is in position to capitalize on the strong demand, with its extensive network and high-quality services.
8. Tempus AI
Tempus AI (TEM -2.69%) harnesses artificial intelligence to advance precision medicine, using its collection of clinical and molecular data from more than 40 million patients to power diagnostics in oncology, cardiology, and beyond. The company projects its revenue to climb by more than 80% this year, to about $1.3 billion.
Tempus AI's scalable platform and extensive data ecosystem present substantial opportunities for expansion and impact in personalized healthcare.
9. TransMedics Group
TransMedics Group (TMDX 1.08%) has revolutionized organ transplantation with its Organ Care System (OCS), the only FDA-approved device for heart, lung, and liver transplants that extends organ preservation time. The company's projected revenue growth of 30% this year underscores the strong momentum in a global expansion opportunity.
10. Veeva Systems
Veeva Systems (VEEV 0.60%) offers cloud-based software that streamlines clinical, regulatory, and commercial processes for life sciences companies. Serving over 1,000 customers, including major pharmaceutical companies and emerging biotechs, Veeva's platform is well positioned to capitalize on the industry's increasing reliance on digital solutions for innovation and compliance.
