Health care stocks have underperformed in recent months on uncertainty surrounding the incoming Donald Trump administration, but they can often be a solid defensive play in an uncertain economy. People don’t typically reduce prescription drug purchases or delay procedures or trips to the doctor just because the economy slumps.
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The Centers for Medicare and Medicaid Services estimates that U.S. health care spending totaled $4.8 trillion in 2023 and projects it will grow 5.6% annually through 2032, providing excellent long-term investment opportunities. Here are 10 of the best health care stocks to buy in 2025, according to CFRA analysts:
| Stock | Upside Potential* |
| Eli Lilly & Co. (ticker: LLY) | 27.8% |
| Johnson & Johnson (JNJ) | 17.4% |
| Merck & Co. Inc. (MRK) | 6.0% |
| Thermo-Fisher Scientific Inc. (TMO) | 25.3% |
| Amgen Inc. (AMGN) | 14.9% |
| Stryker Corp. (SYK) | 8.4% |
| Pfizer Inc. (PFE) | 17.3% |
| Boston Scientific Corp. (BSX) | 14.9% |
| Bristol-Myers Squibb Co. (BMY) | 2.2% |
| Gilead Sciences Inc. (GILD) | 15.6% |
*As of Dec. 3 close.
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 Lilly’s GLP-1 (Zepbound) weight loss drug sales missed expectations in the most recent quarter, but he remains bullish on the stock in the long term given its large number of potential catalysts. Hardy is particularly optimistic that late-stage clinical drug candidates pirtobrutinib (for leukemia and lymphoma) and tirzepatide (for sleep apnea, kidney function and cardiology) will supplement Lilly’s current core commercial drug portfolio. CFRA has a “buy” rating and $1,040 price target for LLY stock, which closed at $813.33 on Dec. 3.
Johnson & Johnson (JNJ)
Johnson & Johnson is a global leader in the pharmaceutical, medical device and consumer health care products industries. Its key products include anti-inflammation drug Stelara, multiple myeloma and light chain amyloidosis drug Darzalex and pain relief drug Tylenol. Hardy says Darzalex, Erleada and other key cancer drugs have a promising outlook in the coming years and patent protections past 2030. In addition, he’s optimistic about Johnson & Johnson’s robust pipeline of additional drug candidates and the positive impact rebounding demand for elective procedures could have on the medical technology segment. CFRA has a “buy” rating and $179 price target for JNJ stock, which closed at $152.36 on Dec. 3.
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 the post-election weakness in Merck’s stock is a buying opportunity for long-term investors. He says Merck has been hit particularly hard following the nomination of vaccine critic Robert F. Kennedy Jr. as secretary of the Health and Human Services Department. However, Hardy says Merck is well diversified outside of vaccines, including a strong presence in immunology, oncology, diabetes, cardiovascular disease and animal health. CFRA has a “buy” rating and $108 price target for MRK stock, which closed at $101.85 on Dec. 3.
Thermo-Fisher Scientific Inc. (TMO)
Thermo-Fisher Scientific produces analytical instruments and provides laboratory services for life sciences, pharmaceutical and industrial applications. Hardy says the life sciences tools and services industry will continue to improve throughout 2025, creating positive tailwinds for its largest company, Thermo-Fisher. He says the company benefits from its large manufacturing network and exposure to biologic-based medicine and other high-growth markets. Hardy says Thermo-Fisher’s track record of innovation and its potential acquisition opportunities suggest its long-term target of 7% to 9% annual organic sales growth is within reach. CFRA has a “buy” rating and $670 price target for TMO stock, which closed at $534.42 on Dec. 3.
Amgen Inc. (AMGN)
Amgen is one of the world’s largest biotechnology companies. Hardy says Amgen generates strong earnings and sales growth and has an attractive pipeline of drug candidates in development. Mid-stage trial data on Amgen’s injectable GLP-I obesity drug MariTide were disappointing, but Hardy says they were far from disastrous. Amgen bulls were hopeful MariTide would achieve better weight loss results than competitors Wegovy and Mounjaro, but its actual results were roughly in line with peers’ outcomes. Still, Hardy says MariTide has a potentially more appealing monthly dosing schedule. CFRA has a “buy” rating and $320 price target for AMGN stock, which closed at $278.32 on Dec. 3.
Stryker Corp. (SYK)
Stryker is a medical technology company that specializes in orthopedics and neurotechnology. Analyst Paige Meyer says Stryker’s Mako robotic orthopedic product and its high exposure to outpatient procedures makes the stock a compelling long-term health care investment. In addition, the chronic, progressive nature of the conditions targeted by Stryker’s orthopedic business will support durable procedure volume demand. Meyer says Stryker’s Wright Medical Group acquisition boosts the company’s presence in extremities procedures, and Stryker is making impressive progress in developing its Mako spine and shoulder applications. CFRA has a “buy” rating and $424 price target for SYK stock, which closed at $390.97 on Dec. 3.
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 Comirnaty COVID-19 vaccine, its Paxlovid COVID-19 oral treatment and its Prevnar pneumococcal vaccine. Hardy says recent reports that Pfizer is considering divesting its hospital drugs business are good news and could help Pfizer generate additional funding to focus on its high-growth, core businesses. Activist investor Starboard creates a certain degree of uncertainty, but Hardy says Starboard could also help unlock value. CFRA has a “buy” rating and $30 price target for PFE stock, which closed at $25.56 on Dec. 3.
Boston Scientific Corp. (BSX)
Boston Scientific is a medical device manufacturer that specializes in cardiovascular, rhythm management and medical-surgical equipment. Meyer says Boston Scientific has an impressive pipeline of products in development and is well positioned in key markets in the long term. As a result, she says investors should forgive the company for recent missteps and focus on key growth drivers moving forward, including the Watchman FLX, Farapulse and ACURATE Neo2. Meyer projects Boston Scientific will outpace peers in earnings growth and deliver a higher return on invested capital in coming years. CFRA has a “buy” rating and $104 price target for BSX stock, which closed at $90.47 on Dec. 3.
Bristol-Myers Squibb Co. (BMY)
Bristol-Myers Squibb is a biopharmaceutical company that specializes in oncology, immunology and cardiovascular therapeutics. The company’s leading drugs include blood thinner Eliquis, lung cancer drug Opdivo and multiple myeloma drug Pomalyst. Hardy says Bristol-Myers shares are attractively valued relative to its improving growth outlook. The company recently acquired psychiatric and neurological conditions specialist Karuna Therapeutics, and Hardy says Bristol-Myers will continue to diversify its business in the next several years. He says an improving sales growth trajectory could offset risks to Eliquis sales in 2026 and beyond. CFRA has a “buy” rating and $60 price target for BMY stock, which closed at $58.69 on Dec. 3.
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 drugs include HIV drugs Biktarvy and Genvoya and antiviral medication Veklury. Hardy says Gilead’s oncology business is progressing and its core HIV business is stable. He expects oncology will account for a growing percentage of Gilead’s overall revenue over time, driven largely by key drugs Yescarta and Trodelvy. Base sales growth in these oncology drugs could even get a boost from additional approved indications. CFRA has a “buy” rating and $107 price target for GILD stock, which closed at $92.49 on Dec. 3.
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10 Best Health Care Stocks to Buy for 2025 originally appeared on usnews.com
Update 12/04/24: This story was previously published at an earlier date and has been updated with new information.
