Federal forecasters expect US healthcare spending to grow about 5.8% a year through 2033, outpacing the broader economy. People over 65 are the fastest-growing age group in the country, and they use far more care than anyone else. On top of that steady demand, the new class of GLP-1 weight-loss drugs is creating one of the largest product launches in the history of medicine. The best healthcare stocks right now include Eli Lilly, Johnson & Johnson, AbbVie, UnitedHealth Group, Merck, Amgen, Thermo Fisher Scientific, and Intuitive Surgical, chosen for their market leadership, cash flow, and balance sheet strength.
Healthcare is also one of the few sectors that holds up when the rest of the market wobbles. People do not stop filling prescriptions or having surgery during a recession. That defensive quality, paired with real growth from drugs and devices, is why this sector belongs in most long-term portfolios.
How We Picked These Stocks
More than 1,000 healthcare companies trade on US exchanges, from tiny biotechs to trillion-dollar drugmakers. We filtered for large, established companies with a clear leadership position in their niche, durable revenue, strong free cash flow (the cash left after running the business and paying for equipment), and a balance sheet that can fund research through good years and bad. We excluded single-product biotechs with no approved drugs and companies that depend on one patent about to expire.
The result is eight companies that each lead a different part of healthcare: branded drugs, diversified products, immunology, health insurance, oncology, biotech, lab tools, and surgical robotics. Owning the group gives you exposure to the whole sector rather than a single bet.
Eli Lilly (NYSE: LLY)
Why it made the list: Eli Lilly is the runaway leader in the GLP-1 weight-loss and diabetes market, with its drugs Mounjaro and Zepbound driving some of the fastest revenue growth of any large company in the world. It became the first healthcare company to reach a $1 trillion market value.
The bull case: An aging population, rising obesity rates, and expanding insurance coverage all point to years of demand. Lilly is rolling out an oral GLP-1 pill that could reach far more patients than today's injections, and Medicare is starting to cover obesity treatment for the first time.
The risk: The stock trades at a high multiple, meaning a lot of future growth is already priced in. Any stumble on a drug launch or a faster-than-expected move by competitors could hit the shares hard.
Key number: First healthcare company to cross a $1 trillion market value.
Johnson & Johnson (NYSE: JNJ)
Why it made the list: Johnson & Johnson is the most diversified name in healthcare, with a deep drug pipeline in cancer and immune diseases alongside a large medical device business. It has raised its dividend for more than 60 straight years, one of the longest streaks in the entire market.
The bull case: The company carries a top-tier AAA credit rating, held by only a handful of US companies, which lets it fund research cheaply and keep paying a rising dividend. New drug launches are designed to replace older products as their patents fade.
The risk: J&J still faces thousands of lawsuits tied to its discontinued talc products, and the final cost of settling them is not yet fixed.
Key number: More than 60 consecutive years of dividend increases.
AbbVie (NYSE: ABBV)
Why it made the list: AbbVie built its name on the immune-disease drug Humira, and it has managed the loss of that patent better than almost anyone expected. Two newer drugs, Skyrizi and Rinvoq, are growing fast enough to more than replace Humira's lost sales.
The bull case: AbbVie is a Dividend King, with more than 50 straight years of dividend increases counting its years as part of Abbott. The yield is among the highest of any large drugmaker, and the new drug lineup gives it room to keep raising the payout.
The risk: The company carries heavy debt from past deals, and its growth leans on just a few key drugs.
Key number: More than 50 consecutive years of dividend growth.
UnitedHealth Group (NYSE: UNH)
Why it made the list: UnitedHealth Group is the largest US health insurer and also owns Optum, a giant health-services arm that handles pharmacy benefits, data, and care delivery. The combination gives it more than $400 billion in annual revenue and a hand in nearly every part of the system.
The bull case: Scale is a powerful advantage in insurance, and an aging population keeps enrollment in Medicare Advantage plans rising. After a sharp drop in 2025, the stock has recovered part of its losses, and analysts still rate it a buy. Our coverage of the recent rotation into health insurers shows money moving back toward the group.
The risk: The Department of Justice has an ongoing investigation into the company's Medicare billing, and the matter is not resolved. UnitedHealth has guided for its first annual revenue decline in a decade.
Key number: More than $400 billion in annual revenue.
Merck (NYSE: MRK)
Why it made the list: Merck makes Keytruda, the world's best-selling drug, a cancer treatment with more than $25 billion in annual sales. The company also has a strong vaccine business and a deep research pipeline.
The bull case: Merck is spending heavily on new drugs and acquisitions to prepare for life after Keytruda. A new under-the-skin version of the drug could keep some sales in house even as competition arrives.
The risk: Keytruda's main US patent expires in 2028, which opens the door to cheaper copies and a likely drop in its sales. How well Merck replaces that revenue is the central question for the stock.
Key number: Keytruda generates more than $25 billion in annual sales.
Amgen (NASDAQ: AMGN)
Why it made the list: Amgen is one of the oldest and largest biotech companies, with steady cash flow from drugs treating bone disease, heart conditions, and cancer. It pairs that base with a growing dividend.
The bull case: Amgen has an experimental obesity drug, MariTide, in late-stage testing that could give it a foothold in the same GLP-1 market driving Lilly's growth. A monthly dosing schedule could set it apart from rivals.
The risk: Several of Amgen's older drugs face competition from cheaper copies, and the obesity trial results are not yet final.
Key number: Dividend raised every year since the company began paying one in 2011.
Thermo Fisher Scientific (NYSE: TMO)
Why it made the list: Thermo Fisher sells the lab equipment, instruments, and services that drugmakers and hospitals depend on. It is a picks-and-shovels way to own healthcare, earning money no matter which drug or device wins.
The bull case: With more than $40 billion in annual revenue and thousands of products, Thermo Fisher benefits from the rising research budgets across the whole industry. Much of its revenue is recurring, since labs keep reordering supplies.
The risk: Demand from biotech customers can soften when funding tightens, and a slowdown in pharma research spending would weigh on sales.
Key number: More than $40 billion in annual revenue.
Intuitive Surgical (NASDAQ: ISRG)
Why it made the list: Intuitive Surgical dominates robotic surgery with its da Vinci systems, used in millions of procedures worldwide. It sells the robots once, then earns repeat revenue from the instruments and service each surgery requires.
The bull case: More than 10,000 da Vinci systems are installed worldwide, and each one generates ongoing high-margin sales for years. As hospitals adopt robotic surgery for more types of procedures, that recurring revenue keeps climbing.
The risk: The stock has fallen well off its high on worries about new competition and the cost of tariffs on imported parts. It pays no dividend, so the entire return depends on growth.
Key number: More than 10,000 da Vinci surgical systems installed worldwide.
Sector Overview
Healthcare runs on demand that does not fade with the economy. People need medicine, surgery, and insurance in good times and bad, which gives the sector a steady floor that many others lack. That stability is one reason money has rotated toward defensive names this year, a shift we covered when the Dow set a record while the Nasdaq fell.
Two forces are reshaping the sector at once. The first is age: the over-65 population is growing faster than any other group, and older people drive the bulk of drug and hospital spending. The second is the GLP-1 wave, where weight-loss and diabetes drugs have become the fastest-growing product category in medicine, lifting Lilly and pulling in rivals like Amgen and Merck.
The trade-off is policy risk. Drug pricing, Medicare reimbursement, and federal investigations can swing a single stock hard, as UnitedHealth's 2025 selloff showed. Spreading money across drugs, devices, tools, and insurance softens that risk. For income-focused investors, several of these names also appear in our guide to the best dividend stocks, and value hunters can compare them against our best value stocks list.
What to Watch
- GLP-1 pill approvals: Eli Lilly's oral weight-loss drug could win US approval and reach a far larger group of patients than injections do today.
- Merck's Keytruda cliff: The 2028 patent expiration draws closer, and every new drug launch or deal signals how well Merck can replace those sales.
- UnitedHealth's DOJ case: Any update on the Medicare billing investigation could move the stock and the broader insurance group sharply.
Bottom Line
These eight stocks give investors a way to own the full breadth of healthcare, from the GLP-1 leader to the company that supplies the labs. The group blends steady dividend payers like Johnson & Johnson and AbbVie with faster growers like Lilly and Intuitive Surgical. For a long-term investor who wants defensive ballast and real growth in one place, a basket across these names is a sound starting point for deeper research.
Frequently Asked Questions
What are the best healthcare stocks to buy right now?
The best healthcare stocks right now include Eli Lilly, Johnson & Johnson, AbbVie, UnitedHealth Group, Merck, Amgen, Thermo Fisher Scientific, and Intuitive Surgical. The group spans drugs, health insurance, biotech, lab tools, and surgical robotics, so it covers the whole sector rather than a single corner of it.
Are healthcare stocks a good investment?
Healthcare stocks tend to hold up well because demand for medicine and care stays steady through recessions. The sector also has real growth drivers, including an aging population and the booming GLP-1 weight-loss market. The main risk is policy: drug pricing rules and federal investigations can hit individual stocks hard.
What is the best healthcare dividend stock?
Johnson & Johnson is a top choice for dividend investors, with more than 60 straight years of dividend increases and a top-tier AAA credit rating. AbbVie is another strong option, offering a higher yield and more than 50 consecutive years of dividend growth.
Which healthcare stock benefits most from weight-loss drugs?
Eli Lilly is the clearest winner from the GLP-1 weight-loss boom, thanks to its drugs Mounjaro and Zepbound. Amgen and Merck are both developing their own obesity treatments and could become larger players in the years ahead.
Is now a good time to buy UnitedHealth stock?
UnitedHealth fell sharply in 2025 on a Department of Justice investigation into its Medicare billing and a leadership change, then recovered part of those losses. The investigation is still open, so the stock carries real uncertainty, but it remains the largest US health insurer and most analysts still rate it a buy.
