Health care stocks lagged the S&P 500 in 2025, at least partly because of U.S. policy uncertainty. However, health care stocks can often be a solid defensive play in an uncertain economy. People don’t typically reduce prescription drug purchases or delay procedures or doctor visits just because the economy slumps.
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The Centers for Medicare and Medicaid Services estimates U.S. health care spending will grow 5.8% annually through 2033, providing excellent long-term investment opportunities as the baby boomer generation ages. Here are 10 of the best health care stocks to buy in 2026, according to CFRA analysts:
| Stock | Implied upside* |
| Eli Lilly & Co. (ticker: LLY) | 16% |
| AbbVie Inc. (ABBV) | 22% |
| Merck & Co. Inc. (MRK) | 8% |
| Amgen Inc. (AMGN) | 10% |
| Intuitive Surgical Inc. (ISRG) | 30% |
| Gilead Sciences Inc. (GILD) | 1% |
| Danaher Corp. (DHR) | 15% |
| Pfizer Inc. (PFE) | 16% |
| Boston Scientific Corp. (BSX) | 36% |
| Stryker Corp. (SYK) | 14% |
*Based on Feb. 2 close and CFRA analysts’ price targets.
Eli Lilly & Co. (LLY)
Eli Lilly produces brand-name prescription drugs to treat a wide range of medical conditions, including diabetes, cancer and neurological disorders. Analyst Sel Hardy says Medicare beneficiaries will be getting a capped $50 per month copay for Lilly’s GLP-1 weight-loss drug Zepbound starting in April, which he says will be a significant tailwind for the company. In addition, the European Union recently approved Lilly’s Alzheimer’s drug Kisunla. Hardy says an aging population and booming demand for GLP-1 drugs will be a powerful combination for Lilly. CFRA has a “buy” rating and $1,211 price target for LLY stock, which closed at $1,044.13 on Feb. 2.
AbbVie Inc. (ABBV)
AbbVie is a global pharmaceutical company. Its key products include Skyrizi, Rinvoq and Humira for treatment of chronic inflammatory conditions such as psoriatic arthritis, Crohn’s disease and ulcerative colitis. Hardy says the Medicare Part D redesign and the looming loss of exclusivity for Humira create significant hurdles for AbbVie, but he is bullish on the company’s longer-term outlook and is optimistic that Skyrizi and Rinvoq sales can offset declining Humira sales. Hardy says AbbVie is an excellent example of a financially solid, well-diversified health care investment. CFRA has a “buy” rating and $275 price target for ABBV stock, which closed at $225.64 on Feb. 2.
Merck & Co. Inc. (MRK)
Merck is one of the world’s largest pharmaceutical companies, and its leading products include cancer drug Keytruda and HPV vaccine Gardasil. Hardy says Merck’s stock is significantly undervalued, and investors are placing too much weight on the patent expiration of Keytruda in 2028. He says Keytruda remains the world’s top-selling drug for now, but Merck’s diversification strategy has the company well positioned for 2028 and beyond. Merck is a market leader in a number of the largest pharma fields, including immunology, oncology, cardiovascular disease and even animal health. CFRA has a “buy” rating and $122 price target for MRK stock, which closed at $113.37 on Feb. 2.
Amgen Inc. (AMGN)
Amgen is one of the world’s largest biotechnology companies
. Hardy says he is bullish on newly commercialized Amgen drugs Tezspire and Lumakras. He is also optimistic about GLP-1 obesity drug candidate MariTide, which is still in late-stage trials. Hardy says Amgen’s 2023 acquisition of Horizon Therapeutics helped expand Amgen’s reach in rare disease treatment and has provided the company much-needed diversification. Hardy anticipates additional label expansions and international growth for Horizon’s key drugs in coming years, while Humira biosimilar Amjevita targets the massive plaque psoriasis market. CFRA has a “buy” rating and $380 price target for AMGN stock, which closed at $344.68 on Feb. 2.
Intuitive Surgical Inc. (ISRG)
Intuitive Surgical produces robotic systems used for a range of different surgical procedures. Hardy recently upgraded Intuitive Surgical following its strong fourth-quarter earnings report and says the company has one of the best management teams in the entire medical device industry. Hardy says Intuitive has impressive margins and a large competitive moat. It also benefited from an acceleration of robotic surgery adoption during the COVID-19 pandemic. Hardy says an aging U.S. population and expansion into cardiac surgery and other new fields will provide further growth opportunities. CFRA has a “buy” rating and $645 price target for ISRG stock, which closed at $496.73 on Feb. 2.
Gilead Sciences Inc. (GILD)
Gilead Sciences is a biopharmaceutical company that develops treatments for HIV/AIDS, hepatitis C, liver disease, hematology/oncology and inflammation. Its leading products include HIV drugs Biktarvy, Descovy and Genvoya. Hardy says Gilead’s impressive execution on recent commercial drug launches and its strength in research and development differentiates it from its competitors. He says the approval of Gilead’s Lenacapivir biannual vaccination against HIV infection is a sign its core HIV portfolio is still thriving, but the company’s oncology franchise could also serve as a significant long-term growth driver. CFRA has a “buy” rating and $145 price target for GILD stock, which closed at $142.89 on Feb. 2.
Danaher Corp. (DHR)
Danaher provides professional, medical, industrial and commercial products. Its key products include its GeneXpert molecular diagnostic platform, its Cytiva chromatography systems and its Beckman Coulter flow cytometers. Hardy says Danaher’s multi-year portfolio transformation initiative has positioned the company for sustainable growth, and its strategic acquisitions have increased exposure to high-growth markets. He says Danaher will accelerate its life sciences tools revenue growth, gain market share and expand margins. Hardy projects 8% to 10% annual revenue growth in the life sciences tools market through at least 2030. CFRA has a “buy” rating and $258 price target for DHR stock, which closed at $223.42 on Feb. 2.
Pfizer Inc. (PFE)
Pfizer is one of the world’s largest pharma companies and has a diversified portfolio of drugs for treating a variety of conditions. Its top drugs include its Eliquis blood thinner, its Vyndaqel cardiomyopathy treatment and its Prevnar pneumococcal vaccine. Hardy says Pfizer’s 2023 acquisition of Seagen will prove to be a significant long-term growth catalyst, and Seagen’s antibody-drug conjugate technology will enable Pfizer to develop more effective, safer cancer drugs. Hardy says Pfizer’s Metsera acquisition also makes the company a major player in the GLP-1 obesity drug market. CFRA has a “buy” rating and $31 price target for PFE stock, which closed at $26.66 on Feb. 2.
Boston Scientific Corp. (BSX)
Boston Scientific is a medical device manufacturer that specializes in cardiovascular, rhythm management and medical-surgical equipment. Hardy says Boston Scientific’s management team has made some missteps as of late, but those mistakes do not negate the stock’s attractive valuation and the company’s impressive development pipeline and portfolio of new commercial products. Hardy says Boston Scientific’s innovation gives the company an edge, and he anticipates growth products such as the Watchman FLX, Farapulse and Acurate Neo2 will help generate high returns on invested capital and earnings-per-share growth. CFRA has a “buy” rating and $125 price target for BSX stock, which closed at $91.87 on Feb. 2.
Stryker Corp. (SYK)
Stryker is a medical technology company that specializes in orthopedics and neurotechnology. Meyer says Stryker’s Mako system makes the company the market leader in robotic orthopedics, and Stryker’s high exposure to outpatient procedures creates upside potential for the stock. Mako installation numbers have been encouraging, and Hardy says U.S. hip and knee procedures have supported impressive orthopedics segment organic growth for Stryker. Looking ahead, he says potential expansion of the Mako system into spine and shoulder applications could create additional upside for Striker investors. CFRA has a “buy” rating and $418 price target for SYK stock, which closed at $368.14 on Feb. 2.
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10 Best Health Care Stocks to Buy for 2026 originally appeared on usnews.com
Update 02/03/26: This story was previously published at an earlier date and has been updated with new information.
