Health care stocks have lagged behind the S&P 500 so far in 2026, but they have historically been excellent defensive investments. Americans don’t typically stop buying prescription medications or cancel important appointments or procedures during economic slowdowns.
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In the longer term, artificial intelligence technology and favorable demographic trends such as an aging baby boomer generation could create further health care tailwinds. The Centers for Medicare and Medicaid Services estimates U.S. health care spending will grow 5.8% annually through 2033. 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) | 41.1% |
| Johnson & Johnson (JNJ) | 23.4% |
| AbbVie Inc. (ABBV) | 29.2% |
| Merck & Co. Inc. (MRK) | 22.5% |
| Thermo Fisher Scientific Inc. (TMO) | 15.4% |
| Amgen Inc. (AMGN) | 17.0% |
| Intuitive Surgical Inc. (ISRG) | 25.3% |
| Gilead Sciences Inc. (GILD) | 33.1% |
| Abbott Laboratories (ABT) | 34.7% |
| Pfizer Inc. (PFE) | 15.7% |
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 is well positioned to capitalize on the boom in demand for GLP-1 weight-loss and diabetes drugs, as well as aging population trends. Hardy says the ongoing international expansion of Mounjaro and Zepbound, coupled with the commercialization of recently approved Foundayo, could be bullish catalysts for the stock in 2026. In addition, Hardy says Lilly will continue to advance its impressive drug development pipeline. CFRA has a “buy” rating and $1,225 price target for LLY stock, which closed at $868.27 on April 27.
Johnson & Johnson (JNJ)
Johnson & Johnson is a global leader in the pharmaceutical and medical device businesses. Its leading drugs include multiple myeloma treatment Darzalex, psoriasis and Crohn’s disease treatment Tremfya and oncology drug Rybrevant. Hardy says she is particularly optimistic on Johnson & Johnson’s new drug launches Carvykti, Tecvayli and Talvey, which could provide growth upside. She says J&J’s 2025 acquisition of Intra-Cellular Therapies has improved its neurologic and psychiatric treatment capabilities, while the spinoff of its orthopedics business is also a savvy move that will help focus its MedTech segment. CFRA has a “buy” rating and $278 price target for JNJ stock, which closed at $225.34 on April 27.
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 AbbVie has made the right moves to mitigate loss of exclusivity on Humira and is generating impressive growth from its immunology franchise. She says AbbVie is on track to generate a combined $31 billion in revenue for Skyrizi and Rinvoq by 2027. The company projects overall revenue will grow at a high-single-digit compound annual rate through 2029. CFRA has a “buy” rating and $255 price target for ABBV stock, which closed at $197.38 on April 27.
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 has successfully diversified its revenue sources via new product launches and strategic acquisitions. She says Merck’s 2025 buyout of Verona Pharma and the strong performances of Capvaxive and Winrevair are highlights of the company’s recent diversification efforts. Hardy also anticipates larger contributions from Merck’s Animal Health segment, including 10% revenue growth in 2026. Finally, Merck’s 3.1% dividend yield is attractive to income investors. CFRA has a “buy” rating and $135 price target for MRK stock, which closed at $110.23 on April 27.
Thermo Fisher Scientific Inc. (TMO)
Thermo Fisher Scientific produces analytical instruments and provides laboratory services for life sciences, pharmaceutical and industrial applications. The company sells laboratory equipment, analytical instruments, diagnostic tools, life science reagents, consumables and other products and services used for medical research and precision testing. Hardy says Thermo Fisher is a leader in the life sciences tools market, and the stock is attractively valued at current levels. She says the company’s impressive manufacturing network and consistent innovation via both external acquisitions and internal research and development will differentiate Thermo Fisher and support growth. CFRA has a “buy” rating and $540 price target for TMO stock, which closed at $468.04 on April 27.
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Amgen Inc. (AMGN)
Amgen is one of the world’s largest biotechnology companies. Hardy says Amgen has an exciting development pipeline. She is particularly interested in obesity drug MariTide, which has six late-stage studies underway. MariTide could potentially stand out from other GLP-1 drugs because its mid-stage trials suggest efficacy with quarterly dosing. Hardy says Amgen’s $28 billion acquisition of Horizon Therapeutics added three rare disease drugs that are already contributing to overall revenue numbers. She says Tezspire and Lumakras show early promise, and Amjevita has a huge addressable market. CFRA has a “buy” rating and $398 price target for AMGN stock, which closed at $340.18 on April 27.
Intuitive Surgical Inc. (ISRG)
Intuitive Surgical produces robotic systems used for a range of different surgical procedures. Hardy says Intuitive Surgical has industry-leading margins and a wide competitive moat. She says the company has tremendous long-term growth potential and a world-class management team with a track record of execution. Hardy says recent system placement trends suggest robotic surgery adoption is on the rise. Looking ahead, she says ambulatory surgery centers and cardiac surgery could be additional growth catalysts for Intuitive. Hardy anticipates Intuitive will outgrow its peers once again in 2026. CFRA has a “buy” rating and $590 price target for ISRG stock, which closed at $470.99 on April 27.
Gilead Sciences Inc. (GILD)
Gilead Sciences is a biopharmaceutical company that develops drugs for HIV/AIDS, hepatitis C, liver disease, hematology/oncology and inflammation. Its leading products include HIV drugs Biktarvy, Descovy and Genvoya. Hardy says Gilead is in a great position for the next decade thanks to an improving growth outlook and no major patent expirations on the calendar until 2036. The mid-2025 FDA approval of Yeztugo as the first and only twice-annual HIV prevention improved Gilead’s outlook, and Hardy says the drug will be a significant contributor this year. CFRA has a “buy” rating and $170 price target for GILD stock, which closed at $127.75 on April 27.
Abbott Laboratories (ABT)
Abbott Laboratories is a diversified global health care company that develops and sells medical devices, diagnostic tests, branded generic medicines and nutritional products. Its top products include its Similac infant formula, its FreeStyle Libre continuous glucose monitor and its Alinity diagnostic systems. Hardy is bullish on Abbott’s strong financial performance, its diversified product portfolio and its growing dividend. She says the company’s recently announced acquisition of Exact Sciences makes Abbott a market leader in oncology diagnostics and cancer screening. Libre also has major partnerships with leading insulin pump companies. CFRA has a “buy” rating and $125 price target for ABT stock, which closed at $92.80 on April 27.
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 is facing loss of exclusivity headwinds starting in 2026, but its aggressive acquisitions of Seagen, Metsera and Biohaven Pharmaceuticals over the past few years should help the company maintain its growth. For example, Hardy says Seagen’s Antibody-Drug Conjugate technology enables safer oncology treatments. CFRA has a “buy” rating and $31 price target for PFE stock, which closed at $26.79 on April 27.
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10 Best Health Care Stocks to Buy for 2026 originally appeared on usnews.com
Update 04/28/26: This story was previously published at an earlier date and has been updated with new information.
