Health care stocks have lagged the S&P 500 in 2025 thanks in part to 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-boom generation ages. Here are 10 of the best health care stocks to buy in 2026, according to CFRA analysts:
| Stock | Implied upside/downside* |
| Eli Lilly & Co. (ticker: LLY) | 3% |
| Johnson & Johnson (JNJ) | 7% |
| AbbVie Inc. (ABBV) | 20% |
| Merck & Co. Inc. (MRK) | -2% |
| Thermo-Fisher Scientific Inc. (TMO) | 13% |
| Amgen Inc. (AMGN) | 14% |
| Danaher Corp. (DHR) | 14% |
| Gilead Sciences Inc. (GILD) | 13% |
| Boston Scientific Corp. (BSX) | 27% |
| Pfizer Inc. (PFE) | 23% |
*From Nov. 24 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 Eli Lilly recently secured an important deal to provide Medicare beneficiaries with a $50 per month Zepbound copay starting in April 2026, as well as discounted self-pay pricing for consumers via its direct-to-customer online platform. Hardy says Zepbound and other weight loss drugs position Lilly to capitalize on the GLP-1 demand boom. He is bullish on Lilly’s pipeline and recently approved commercial drugs as well. CFRA has a “buy” rating and $1,101 price target for LLY stock, which closed at $1,070.16 on Nov. 24.
Johnson & Johnson (JNJ)
Johnson & Johnson is a global leader in the pharmaceutical, medical device and consumer health care products industries. Hardy recently upgraded Johnson & Johnson following the company’s strong third-quarter earnings report and its announcement that it plans to separate its orthopedics business into a standalone entity. He says the separation is in line with J&J’s strategy of portfolio optimization. Meanwhile, Hardy says the company is generating impressive growth numbers from both its Innovative Medicine and MedTech segments, and its acquisition of Intra-Cellular Therapies could help differentiate its neuroscience business. CFRA has a “buy” rating and $220 price target for JNJ stock, which closed at $206.05 on Nov. 24.
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 Humira’s patent expiration and the Medicare Part D redesign will be headwinds for AbbVie, but Skyrizi and Rinvoq will help offset those pressures and should allow AbbVie to maintain high-single-digit compound annual revenue growth through 2029. He says AbbVie is well diversified and projects a combined $31 billion in revenue from Skyrizi and Rinvoq in 2027. CFRA has a “buy” rating and $275 price target for ABBV stock, which closed at $229.51 on Nov. 24.
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 extremely undervalued based on historical levels. Keytruda was the top-selling drug in the world as of 2024, but Hardy says Merck has taken meaningful strides to diversify via acquisitions and collaboration deals. These diversification efforts will help the company prepare for loss of exclusivity on Keytruda in 2028. Hardy says Merck is an industry leader in immunology, oncology and animal health. CFRA has a “buy” rating and $98 price target for MRK stock, which closed at $100.40 on Nov. 24.
Thermo-Fisher Scientific Inc. (TMO)
Thermo-Fisher Scientific produces analytical instruments and provides laboratory services for life sciences, pharmaceutical and industrial applications. Hardy anticipates a recovery in the life sciences and tools business and says Thermo-Fisher’s fit/fill manufacturing network differentiates it from competitors in the high-growth biologic medicines market. He says the company’s geographic coverage, purchasing power, impressive internal innovation and track record of successful acquisitions make Thermo-Fisher an excellent long-term health care growth investment. He projects the life sciences tools market will grow 8% to 10% annually through 2030. CFRA has a “buy” rating and $660 price target for TMO stock, which closed at $586.07 on Nov. 24.
Amgen Inc. (AMGN)
Amgen is one of the world’s largest biotechnology companies. Hardy says Amgen has several bullish catalysts for 2026, including newly commercialized drugs Tezspire and Lumakras. In addition, Hardy sees upside from the company’s MariTide GLP-1 obesity drug, which is currently in late-stage trials. He says Amgen’s Horizon Therapeutics acquisition helps the company diversify its revenue by adding significant rare disease treatment exposure. Hardy estimates Horizon’s top three drugs will account for $3.4 billion in annual sales along with significant international growth and label expansion opportunities. CFRA has a “buy” rating and $380 price target for AMGN stock, which closed at $334.30 on Nov. 24.
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 projects between 8% and 10% compound annual growth in the life sciences market through 2030 and says Danaher will capture a meaningful portion of that growth. He says Danaher’s efforts to streamline its portfolio should allow for margin expansion and sales growth acceleration in coming years. Hardy says Danaher has a history of prudent acquisitions and he anticipates additional deals. CFRA has a “buy” rating and $258 price target for DHR stock, which closed at $226.98 on Nov. 24.
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 has had tremendous commercial success, and its impressive research and development history differentiates the company from its peers. He says Gilead’s HIV business is generating positive momentum following the approval of Yeztugo, the first biannual shot for HIV prevention available in the U.S. Hardy says Gilead’s oncology sales will accelerate in the long term. CFRA has a “buy” rating and $142 price target for GILD stock, which closed at $125.27 on Nov. 24.
Boston Scientific Corp. (BSX)
Boston Scientific is a medical device manufacturer that specializes in cardiovascular, rhythm management and medical-surgical equipment. Analyst Jonathan Sakraida says Boston Scientific has made some missteps in the recent past, but the company’s long-term growth trajectory and product pipeline make it a compelling investment. Sakraida is particularly optimistic about the impact of products such as Farapulse, Watchman FLX, ACURATE neo2, Rezum, Varithena and its AGENT drug-coated balloon. He anticipates Boston Scientific will generate elevated returns on invested capital and deliver earnings-per-share growth that will outshine its peers. CFRA has a “buy” rating and $125 price target for BSX stock, which closed at $98.04 on Nov. 24.
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 has positioned Pfizer to utilize antibody-drug conjugates technology to produce safer, more effective cancer drugs. In addition, Pfizer recently won a bidding war to acquire Metsera, which Hardy says could make Pfizer a key player in the GLP-1 obesity drug market. CFRA has a “buy” rating and $31 price target for PFE stock, which closed at $25.22 on Nov. 24.
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10 Best Health Care Stocks to Buy for 2026 originally appeared on usnews.com
Update 11/25/25: This story was previously published at an earlier date and has been updated with new information.
