10 Top Performing Healthcare Stocks

Disclaimer

In market volatility, healthcare stocks with low beta values stand out as stable investments, offering resilience against broader market fluctuations. These companies, known for their consistent growth and solid financial performance, often operate in essential pharmaceuticals, medical devices, and biotechnology sectors. Their strong revenue streams and steady growth trajectories make them attractive to investors seeking reliable returns and reduced risk.

Below is a list of ten top-performing healthcare stocks that combine low beta, high revenue growth, and solid operating margins, positioning them as defensive yet profitable choices in the current market landscape:

1. Eli Lilly and Co. (LLY)

Eli Lilly and Company (LLY) is a global pharmaceutical leader specializing in diabetes, oncology, immunology, and neuroscience. The company’s innovative treatments have driven its growth, particularly in the weight-loss and diabetes sectors. With expanding revenue streams and increasing market share, Eli Lilly is a key player in the healthcare industry.

Revenue Sources

Eli Lilly’s revenue is diversified across several therapeutic areas:

• Diabetes – $26.16 billion
• Oncology – $8.08 billion
• Immunology – $4.21 billion
• Neuroscience – $1.44 billion
• Other Segments – $968.5 million

Market Growth

The company has seen a 27.41% year-over-year revenue increase, reaching $40.86 billion. Eli Lilly’s market capitalization is nearing $1 trillion, driven by the success of its weight-loss drugs Mounjaro and Zepbound.

Competition

Eli Lilly competes with major pharmaceutical companies, including:

• Novo Nordisk – A primary competitor in the weight-loss and diabetes markets
• Pfizer and AbbVie – Competitors in immunology and oncology

Returns

• Return on Equity (ROE): 71.08%
• Net Margin: 20.48%
• Stock Growth: 33% over the past year

Risks

Eli Lilly faces potential risks such as:

• Patent expirations – Threat from generic competition
• Regulatory challenges – Compliance with stringent global regulations
• Innovation pressure – Necessity to continually develop new products to sustain growth

Eli Lilly’s ability to navigate competition and maintain innovation will be crucial for sustaining its leadership in the healthcare market.

2. Johnson & Johnson (JNJ)

Johnson & Johnson (JNJ) is a global healthcare giant operating across pharmaceuticals, medical devices, and consumer health products. As one of the most diversified healthcare companies, J&J consistently delivers innovation and maintains a strong market presence. The company’s long-term growth strategy focuses on expanding its pharmaceutical and MedTech segments, driving consistent returns for investors despite facing industry challenges.

Revenue Sources

Johnson & Johnson’s revenue is primarily generated from two core segments:

• Pharmaceutical (Innovative Medicine): $56.35 billion
• MedTech: $31.34 billion

Market Growth

In 2024, J&J reported a 5.2% sales increase, totaling $22.5 billion in Q3 alone. The company projects an annual CAGR of 5-7% from 2025 to 2030, reflecting strong future growth potential driven by advancements in oncology and immunology.

Competition

J&J operates in a highly competitive landscape, facing key rivals such as:

• Pfizer – Competes in pharmaceuticals and immunology
• Merck & Co. – A major player in oncology
• Medtronic – A competitor in medical devices

While J&J’s growth rate of 5.25% lags behind the industry average of 14.79%, its diversified portfolio helps sustain steady performance.

Returns

• Adjusted EPS: $2.42 (Q3 2024), surpassing forecasts of $2.21
• Full-Year Revenue Guidance: $89.4 – $89.8 billion
• Steady Dividend Payouts continue to attract long-term investors

Risks

Despite its strengths, Johnson & Johnson faces notable risks:

• Regulatory Compliance – Operating in multiple regions with varying regulations
• Legal Liabilities – Ongoing talc-related lawsuits pose potential financial risks
• Intense Competition – Pressures from competitors may affect profitability

Johnson & Johnson’s ability to navigate these risks while leveraging its robust pipeline and diversified revenue sources ensures it remains a dominant force in the healthcare sector.

3. Merck & Co. Inc. (MRK)

Merck & Co., Inc. (MRK) is a global pharmaceutical powerhouse recognized for its leadership in oncology, vaccines, and animal health. The company’s focus on innovation, mainly through its blockbuster cancer drug Keytruda, has cemented its position as a dominant player in the healthcare industry. Despite challenges, Merck continues to grow through its diversified portfolio and ongoing research and development efforts.

Revenue Sources

Merck generates revenue across multiple segments, with pharmaceuticals leading the way:

• Keytruda – Accounts for approximately 40% of total revenue as the flagship cancer immunotherapy drug
• Gardasil/Gardasil 9 – A top-selling vaccine for HPV prevention
• Januvia/Janumet – Type 2 diabetes treatments (experiencing recent sales declines)
• Animal Health – Products for livestock and companion animals, contributing to steady growth

Market Growth

In Q3 2024, Merck’s sales rose by 4%, reaching $16.66 billion. However, the company lowered its full-year guidance, citing underperformance in specific product lines. Despite this, long-term growth is expected through continued expansion in oncology and vaccines.

Competition

Merck operates in a highly competitive environment, with major competitors including:

• Pfizer – Competes in vaccines and immunotherapy
• Johnson & Johnson – Rival in oncology and immunology
• Roche – A key player in cancer treatment and diagnostics

The looming Keytruda patent expiration (2028) introduces the risk of biosimilar competition, which could significantly impact future revenue.

Returns

• Q3 2024 Adjusted EPS: $1.57 (exceeding estimates of $1.48)
• Stock Performance: Down 7% year-to-date despite earnings growth
• Dividend Consistency – Merck remains a reliable dividend payer, appealing to long-term investors

Risks

Notable risks accompany Merck’s growth prospects:

• Patent Expiration – Keytruda’s patent loss could result in revenue erosion
• Regulatory Hurdles – Strict global regulations could delay product launches
• Sales Volatility – Declining sales of Januvia and Gardasil highlight vulnerabilities
• Competitive Pressure – Intensifying competition in core markets

Merck’s future hinges on its ability to offset patent cliffs through new product development and strategic acquisitions, ensuring sustained leadership in the pharmaceutical industry.

4. Thermo Fisher Scientific Inc. (TMO)

Thermo Fisher Scientific Inc. (TMO) is a global leader in scientific services, providing innovative solutions across life sciences, healthcare, and applied sciences. Known for its comprehensive range of laboratory equipment, diagnostic tools, and biopharma services, Thermo Fisher plays a critical role in advancing research and improving health outcomes worldwide. Despite facing economic headwinds and regulatory challenges, the company continues strengthening its market position through strategic acquisitions and product innovation.

Revenue Sources

Thermo Fisher’s revenue is derived from a diverse range of segments, ensuring resilience across market cycles:

• Life Sciences Solutions – Reagents, instruments, and consumables for biological research
• Analytical Instruments – Tools and software for analytical and diagnostic applications
• Specialty Diagnostics – Diagnostic kits, reagents, and instruments for healthcare providers
• Laboratory Products and Biopharma Services – Lab equipment and services supporting clinical and research industries

In Q3 2024, the company reported $10.6 billion in revenue, maintaining steady performance despite a challenging macroeconomic environment.

Market Growth

Thermo Fisher forecasts revenue growth in 2025, driven by easing market challenges and increasing demand for scientific tools.

• Adjusted EPS Guidance for 2024: $21.35 to $22.07
• Revenue Forecast: $42.4 billion to $43.3 billion

The company anticipates continued growth in its biopharma services and life sciences segments as pandemic-related declines subside.

Competition

Thermo Fisher operates in a competitive landscape, contending with major players in the life sciences and diagnostics sectors:

• Danaher Corporation – A leading competitor in diagnostics and bioprocessing
• Agilent Technologies – Competes in analytical instruments and diagnostics
• Recent Acquisition: Olink Holding AB for $3.1 billion, strengthening Thermo Fisher’s presence in proteomics

Returns

• Q1 2024 Net Income: Increased to $1.33 billion (up from $1.29 billion in Q1 2023)
• Relative Strength (RS) Rating: Improved to 81, signaling strong market performance

Risks

Despite its leadership position, Thermo Fisher faces several risks that could impact growth:

• Global Economic Uncertainty – Economic downturns could reduce demand for scientific products
• Regulatory Compliance – Ongoing regulatory requirements across global markets pose operational risks
• Operational Disruptions – FDA observations at manufacturing sites highlight potential quality control risks
• Competitive Pressure – Rivals may introduce innovations, affecting Thermo Fisher’s market share

Thermo Fisher’s ability to navigate these risks while leveraging its acquisitions and innovative pipeline will be essential in sustaining long-term growth and leadership in the scientific services industry.

5. Amgen Inc. (AMGN)

Amgen Inc. (AMGN) is a biotechnology powerhouse focused on developing innovative therapies for serious diseases, with a strong presence in oncology, cardiovascular health, and inflammation. Amgen’s commitment to cutting-edge research and a robust product pipeline drives its growth, while its diversified revenue streams help mitigate risks in a competitive pharmaceutical landscape.

Revenue Sources

Amgen’s revenue is driven by its portfolio of biologics and innovative treatments:

• Prolia – Osteoporosis treatment, a key revenue driver
• Repatha – Cholesterol-lowering medication (sales up 40% in 2024)
• Enbrel – Autoimmune disease therapy (sales down 20% due to biosimilar competition)

Market Growth

In Q3 2024, Amgen achieved a 24% sales increase, reaching $8.5 billion.

• Adjusted EPS: Rose 13% to $5.58, exceeding analyst projections
• Sales Outlook: Revised to $33 billion to $33.8 billion for full-year 2024

The company’s growth trajectory is supported by strong demand for its cholesterol and osteoporosis treatments and emerging opportunities in weight-loss therapies.

Competition

Amgen faces stiff competition, especially in the growing obesity treatment market:

• Novo Nordisk and Eli Lilly – Dominant players in the weight-loss space
• Amgen’s MariTide – Experimental obesity drug in Phase 2, showing 20% average weight loss in patients on the highest dose over one year

Returns

• Stock Performance: Up 12.7% year-to-date in 2024
• Steady Dividend Payouts – Supporting long-term shareholder value

Risks

Amgen faces several critical risks:

• Patent Expirations – Potential threats from generic competition
• Regulatory Hurdles – Complex approval processes across markets
• Market Competition – Pressure from established competitors in high-growth areas like obesity and cardiovascular health

Amgen’s ability to innovate and diversify its pipeline and focus on emerging therapies positions the company for sustained growth despite industry challenges.

6. Stryker Corp. (SYK)

Stryker Corporation (SYK) is a global leader in medical technology, offering a wide range of products across orthopedics, surgical equipment, and neurotechnology. Known for innovation and quality, Stryker consistently enhances healthcare delivery and patient outcomes. The company’s growth is driven by continuous product development and strategic acquisitions, solidifying its competitive medical device industry position.

Revenue Sources

Stryker’s revenue streams are diversified across key segments:

• Orthopedics and Spine – Joint replacement implants and spinal surgery devices
• MedSurg and Neurotechnology – Surgical equipment, endoscopy systems, and neurovascular tools
• Neurotechnology and Spine – Neurosurgical and spinal care products

In Q3 2024, Stryker reported $5.49 billion in revenue, reflecting an 11.92% year-over-year growth. Annual revenue increased by 10.51%, reaching $21.97 billion.

Market Growth

Stryker’s consistent growth is fueled by ongoing innovation and acquisitions:

• 5-Year Revenue Growth Forecast: 7.97%
• EPS Growth Expectation: 16% over the next five years

The company’s ability to expand product lines and enter new markets positions it well for future growth.

Competition

Stryker competes with major medical technology firms, including:

• Medtronic – A leader in surgical equipment and neurotechnology
• Johnson & Johnson – Competing in orthopedics and surgical solutions
• Zimmer Biomet – Focused on musculoskeletal healthcare

Stryker’s innovation and product quality have been key to maintaining a competitive edge in this landscape.

Returns

• Market Capitalization: Approximately $137.82 billion
• Stock Performance: Positive growth reflecting strong investor confidence
• Dividend Payouts: Consistent returns to shareholders

Risks

Despite a strong performance, Stryker faces several risks:

• Regulatory Compliance – Adapting to evolving global medical device regulations
• Supply Chain Disruptions – Potential delays in manufacturing and distribution
• Economic Volatility – Global economic conditions influencing healthcare spending
• Competitive Pressure – The need for continuous innovation to outpace rivals

Stryker’s ability to manage these risks while leveraging growth opportunities will be crucial for maintaining its leadership in the medical technology sector.

7. Pfizer Inc. (PFE)

Pfizer Inc. (PFE) is a global pharmaceutical and biotechnology leader known for developing and producing medicines and vaccines across key therapeutic areas such as immunology, oncology, cardiology, and neurology. Pfizer’s reputation was further solidified during the COVID-19 pandemic through its groundbreaking vaccine, Comirnaty, and oral antiviral treatment, Paxlovid. Despite facing market competition and regulatory hurdles, the company’s strong pipeline and diverse product portfolio position it as a dominant force in the pharmaceutical industry.

Revenue Sources

Pfizer’s revenue is driven by its diverse portfolio of vaccines, treatments, and specialty drugs:

• Comirnaty – COVID-19 vaccine ($11 billion in 2023 revenue)
• Paxlovid – Oral COVID-19 treatment ($2.7 billion in Q3 2024)
• Eliquis – Anticoagulant medication ($6 billion in 2023)
• Prevnar – Pneumococcal vaccine ($6 billion in 2023)
• Ibrance – Oncology treatment ($4 billion in 2023)

Market Growth

Pfizer experienced strong growth in Q3 2024, with revenues rising 31% to $17.7 billion, primarily driven by the continued demand for Paxlovid and Comirnaty.

• Full-Year 2025 Revenue Forecast: $61.0 to $64.0 billion
• Operational Revenue Growth: Projected flat to 5% growth for 2025

Competition

Pfizer competes in a highly dynamic pharmaceutical landscape against major players such as:

• Merck & Co.
• Bristol-Myers Squibb
• GSK
• Johnson & Johnson
• AbbVie

The competitive environment requires continuous innovation to maintain and expand market share.

Returns

• Market Capitalization: Approximately $151 billion as of late 2024
• Stock Price (Dec 2024): $26.62
• Adjusted EPS (Q3 2024): $1.06, surpassing analyst expectations

Risks

Pfizer faces several risks that could impact its performance:

• Regulatory Complexity – Managing approvals across various international markets
• Competition – Pressure from rivals in key therapeutic areas
• Revenue Dependence – Heavy reliance on Comirnaty and Paxlovid, with potential sales declines as the pandemic wanes

Pfizer’s future growth depends on its ability to innovate, diversify its product pipeline, and adapt to evolving healthcare needs and regulatory landscapes.

8. Boston Scientific Corp. (BSX)

Boston Scientific Corporation (BSX) is a global leader in medical technology, specializing in developing minimally invasive medical devices that enhance patient outcomes and improve quality of life. The company operates across various interventional specialties, leveraging innovation and strategic acquisitions to expand its market presence. Boston Scientific’s strong financial performance is driven by increasing demand for cardiovascular and MedSurg products, positioning it for continued growth in the healthcare sector.

Revenue Sources

Boston Scientific’s revenue is well-diversified across core segments:

• Cardiovascular – Interventional cardiology and peripheral devices ($2.73 billion, +25% in Q3 2024)
• MedSurg – Endoscopy and urology products (sales increased by 10.3% in Q3 2024)

The company reported $4.21 billion in Q3 2024 revenue, reflecting a 19.4% year-over-year increase.

Market Growth

Boston Scientific continues to experience robust growth fueled by product innovation and acquisitions:

• Q3 2024 Revenue Growth: +19.4%
• Strong Cardiovascular Sales – A major driver of expansion
• Strategic Acquisition: Silk Road Medical ($1.16 billion), boosting its vascular portfolio

Competition

Boston Scientific faces strong competition in the medical device space, contending with:

• Medtronic
• Abbott Laboratories
• Johnson & Johnson

The company’s emphasis on technological advancements and acquisitions helps it stay competitive in this fast-paced industry.

Returns

• Stock Growth: Up 57% in 2024
• Analyst Price Target: $101.06, suggesting an 11% upside
• Consistent Earnings Beats: Driven by cardiovascular and MedSurg product success

Risks

Boston Scientific must navigate several challenges to maintain its leadership:

• Regulatory Hurdles – Complex approval processes across global markets
• Product Recalls – Recent recalls of Accolade pacemakers due to technical issues
• Market Competition – Pressure to consistently innovate to fend off rivals

Boston Scientific’s focus on innovation, acquisitions, and strategic expansion underpins its growth, but the company must manage regulatory and operational risks to sustain its upward trajectory.

9. Bristol-Myers Squibb Co. (BMY)

Bristol Myers Squibb (BMY) is a global biopharmaceutical leader focused on discovering and delivering innovative medicines to treat serious diseases, including cancer, cardiovascular conditions, and immune disorders. Known for blockbuster drugs like Eliquis and Opdivo, the company continues to expand its portfolio with emerging therapies such as Camzyos and Breyanzi. Despite facing challenges from generic competition, Bristol Myers Squibb leverages research and development to drive growth and maintain its competitive edge in the pharmaceutical industry.

Revenue Sources

Bristol Myers Squibb’s revenue comes from a mix of established and emerging products:

• Eliquis – Anticoagulant drug, consistently a top revenue contributor
• Opdivo – Immuno-oncology drug for cancer treatment
• Revlimid – Multiple myeloma therapy (sales declining due to generic competition)
• New Products – Growth driven by Camzyos and Breyanzi, with Camzyos sales more than tripling in Q3 2024

Market Growth

The company experienced solid growth in 2024, driven by strong product performance:

• Q3 2024 Revenue: $11.9 billion (+8% YoY)
• Full-Year 2024 Forecast: +5% revenue growth
• New Product Pipeline – Continues to expand, supporting long-term growth

Competition

Bristol Myers Squibb operates in a competitive environment alongside major pharmaceutical companies:

• Merck & Co.
• Pfizer
• Johnson & Johnson

Continuous investment in R&D helps BMY differentiate itself and sustain innovation.

Returns

• Stock Performance: Positive movements following strong earnings reports
• Dividend Payouts: Consistent and reliable returns for shareholders
• Optimistic Forecasts: Future guidance raised after outperforming market expectations

Risks

Despite its strengths, Bristol Myers Squibb faces notable risks:

• Generic Competition – Revlimid sales dropped 36% due to generic alternatives
• Regulatory Complexity – Operating in highly regulated global markets
• Market Dependence – 70% of revenue is derived from U.S. sales, exposing the company to domestic healthcare policy changes

Bristol Myers Squibb’s focus on diversifying its product pipeline and expanding global reach positions it well to mitigate these risks and sustain growth in the evolving pharmaceutical landscape.

10. Gilead Sciences Inc. (GILD)

Gilead Sciences, Inc. (GILD) is a prominent biopharmaceutical company recognized for developing life-saving therapies in HIV, liver diseases, oncology, and COVID-19. Its innovative approach to antiviral treatments and oncology pipelines has cemented Gilead’s position as a key player in global healthcare. With strong financial performance driven by HIV treatments and growing oncology sales, Gilead continues to expand its product portfolio and invest in future growth areas, including obesity treatments and emerging antiviral therapies.

Revenue Sources

Gilead’s revenue is anchored by its leading treatments across various therapeutic areas:

• HIV Therapies – Biktarvy sales rose 13% to $3.5 billion in Q3 2024
• Oncology – Sales increased by 6% to $816 million (driven by Trodelvy)
• COVID-19 Treatment – Veklury (Remdesivir) generated $692 million in Q3 2024, up 9%
• Total Q3 2024 Revenue: $7.55 billion (+7% YoY)

Market Growth

Gilead’s strong performance is reflected in its financial growth and optimistic outlook:

• Full-Year 2024 Guidance: $27.8 billion to $28.1 billion in product sales
• Oncology and HIV – Key growth areas supporting sustained revenue increases
• Expansion – Investments in obesity drugs and other high-growth markets

Competition

Gilead competes in a dynamic biopharma landscape against established pharmaceutical giants:

• GlaxoSmithKline (GSK) – HIV treatments
• Merck & Co. – Antiviral therapies
• Bristol Myers Squibb – Oncology treatments

Strategic acquisitions and new product launches are crucial for Gilead to maintain market leadership.

Returns

• Stock Performance: Up 44% from 2024 lows, reflecting strong investor confidence
• Dividend Payments: Consistent and stable, enhancing shareholder value
• Growth Drivers: Increased revenue from core products and emerging therapeutic areas

Risks

Despite its successes, Gilead faces key challenges:

• Market Competition – Pressure from rivals in HIV and antiviral markets
• Regulatory Barriers – Complex approval processes for new drugs
• Product Dependence – Heavy reliance on Biktarvy and Veklury for revenue

Gilead’s future growth depends on expanding its oncology portfolio and entering new treatment areas, positioning it for long-term success in the evolving healthcare landscape.