Once again, the technology sector drove much of the market's gains this year. The healthcare industry, on the other hand, has been a bit of a laggard.
However, there have been notable standouts among medically focused stocks. The list of strong performers includes CRISPR Therapeutics (CRSP 2.12%), a biotech company, and HCA Healthcare (HCA 0.88%), a leading hospital chain. They have outperformed the S&P 500, (^GSPC 1.52%) rising by 44% and 58%, respectively, this year compared with about 18% for the benchmark index.
Could they keep the momentum going in 2026? Let's find out whether they are buys heading into the new year.
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1. CRISPR Therapeutics
The performance of smaller biotechs tends to be driven by clinical and regulatory progress. That's what we have seen this year with CRISPR Therapeutics, a gene editing specialist. None of the company's pipeline candidates are close to approval, but several are performing pretty well in early-stage studies. And the best part is that some of these could be major breakthroughs in their respective niches.
For instance, CRISPR Therapeutics CTX310 could be a one-time option (no such thing currently exists) for patients to lower their LDL cholesterol and triglycerides -- both of which, in higher levels, can cause strokes, heart attacks, or other major cardiovascular events.
So far, CTX310 has demonstrated the potential to deliver exactly what it promises in early-stage clinical studies, which has helped propel CRISPR Therapeutics' shares in the right direction, despite the fact that it still generates minimal revenue and is unprofitable. Should investors purchase the company's shares in 2026?
NASDAQ: CRSP
Key Data Points
In my view, there is a strong case to be made here, especially for investors who are comfortable with elevated risk. The risk comes from the fact that unforeseen clinical or regulatory setbacks (poor results from clinical trials, clinical holds due to potentially severe side effects) would sink the company's shares.
On the other hand, the stock has significant upside potential. Progress with CTX310 -- as well as other pipeline candidates, such as CTX320, being developed to lower Lipoprotein(a), which can cause heart disease -- will jolt the stock price. Next year, CRISPR Therapeutics also expects significant commercial progress for its lone approved product, Casgevy, which treats two rare blood diseases.
So, it's fair to be cautiously optimistic about CRISPR Therapeutics' prospects in 2026 and beyond. If it can launch several new products during the next few years, it could become a less risky, more established, and, perhaps, profitable biotech within the next decade.
2. HCA Healthcare
HCA Healthcare has outperformed the market this year, driven by strong financial results. The company beat expectations and was rewarded for it. Meanwhile, it has also bagged notable achievements, with 33 of its hospitals being named among the top 100 hospitals by Fortune. The corporation was also featured as one of the world's most admired companies by the renowned magazine.
With that said, can HCA Healthcare sustain that momentum throughout 2026? It's hard to say. On the one hand, one might argue that HCA Healthcare is still trading at just 16 times forward earnings, which is lower than the average forward price-to-earnings ratio of 18.2 for healthcare stocks.
NYSE: HCA
Key Data Points
However, there is some uncertainty ahead. Federal policy in the U.S. can have a significant impact on the company's financial results, and some potential changes could lead to lower patient demand for its services.
For instance, as the company pointed out during its third-quarter earnings conference call, we still don't know whether the enhanced premium tax credits, which help decrease out-of-pocket premium costs for some patients, leading to wider insurance coverage and higher demand for HCA's services, will be extended in 2026. That's just one example of several potential policy changes that could affect its results.
My view is that HCA Healthcare won't perform as well in 2026 as it did this year, but the stock remains a solid option for long-term investors. Nearly three dozen of its hospitals are named among the best, and they aren't just for show. HCA Healthcare has consistently sought to provide patients with better services, and this approach has been rewarded materially with a growing market share.
Furthermore, it benefits from a strong competitive edge, thanks to its relationships with third-party payers, patients, and physicians. And with long-term trends like the world's aging population, which will lead to higher demand for its services, even one bad year (if it has one in 2026) won't significantly alter its long-term prospects.
In short, HCA Healthcare is still a buy in 2026.
