Best Health Care Stocks for 2025
Best Health Care Stocks for 2025
Health care stocks have outperformed so far in 2025 despite uncertainty surrounding the new Donald Trump administration. 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 trips to the doctor just because the economy slumps.
The Centers for Medicare and Medicaid Services estimates U.S. health care spending will grow 5.6% annually through 2032, providing excellent long-term investment opportunities as the baby boomer generation ages. Here are 10 of the best health care stocks to buy in 2025, according to CFRA analysts:
StockUpside Potential*
Eli Lilly & Co. (ticker: LLY)32.4%
Johnson & Johnson (JNJ)18.2%
Merck & Co. Inc. (MRK)22.6%
Thermo-Fisher Scientific Inc. (TMO)40.4%
Amgen Inc. (AMGN)20.7%
Boston Scientific Corp. (BSX)26.9%
Danaher Corp. (DHR)37.9%
Pfizer Inc. (PFE)23.5%
Stryker Corp. (SYK)24.4%
Vertex Pharmaceuticals Inc. (VRTX)15.9%
The Centers for Medicare and Medicaid Services estimates U.S. health care spending will grow 5.6% annually through 2032, providing excellent long-term investment opportunities as the baby boomer generation ages. Here are 10 of the best health care stocks to buy in 2025, according to CFRA analysts:
StockUpside Potential*
Eli Lilly & Co. (ticker: LLY)32.4%
Johnson & Johnson (JNJ)18.2%
Merck & Co. Inc. (MRK)22.6%
Thermo-Fisher Scientific Inc. (TMO)40.4%
Amgen Inc. (AMGN)20.7%
Boston Scientific Corp. (BSX)26.9%
Danaher Corp. (DHR)37.9%
Pfizer Inc. (PFE)23.5%
Stryker Corp. (SYK)24.4%
Vertex Pharmaceuticals Inc. (VRTX)15.9%
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Re: Best Health Care Stocks for 2025
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 an aging U.S. population and the ongoing boom in GLP-1 weight loss drug demand will serve as significant tailwinds for Lilly shares. When it comes to Eli Lilly's drug development pipeline, Hardy is particularly optimistic about Tirzepatide for kidney function and cardiac health and Lilly's Orforglipron daily oral GLP-1 pill. He says these innovative drug candidates complement the company's impressive commercial portfolio. CFRA has a "buy" rating and $1,045 price target for LLY stock, which closed at $789.09 on April 3.
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 an aging U.S. population and the ongoing boom in GLP-1 weight loss drug demand will serve as significant tailwinds for Lilly shares. When it comes to Eli Lilly's drug development pipeline, Hardy is particularly optimistic about Tirzepatide for kidney function and cardiac health and Lilly's Orforglipron daily oral GLP-1 pill. He says these innovative drug candidates complement the company's impressive commercial portfolio. CFRA has a "buy" rating and $1,045 price target for LLY stock, which closed at $789.09 on April 3.
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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 headache and oral blood cancer therapy Imbruvica. Hardy says Johnson & Johnson's proposed acquisition of IntraCellular will significantly improve its neuroscience exposure, boost its innovative medicine segment growth and differentiate the company from pharma competitors. He says J&J can continue to target strategic acquisitions to offset the negative impact biosimilar competition will have on Stelara sales. CFRA has a "buy" rating and $189 price target for JNJ stock, which closed at $159.82 on April 3.
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 headache and oral blood cancer therapy Imbruvica. Hardy says Johnson & Johnson's proposed acquisition of IntraCellular will significantly improve its neuroscience exposure, boost its innovative medicine segment growth and differentiate the company from pharma competitors. He says J&J can continue to target strategic acquisitions to offset the negative impact biosimilar competition will have on Stelara sales. CFRA has a "buy" rating and $189 price target for JNJ stock, which closed at $159.82 on April 3.
Re: Best Health Care Stocks for 2025
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 Keytruda sales growth will moderate in 2026 and beyond heading into the drug's patent expiration in the U.S. market in 2028. That expiration is a significant risk for Merck investors given Keytruda makes up about half of the company's sales, but Hardy says Merck is well diversified and will generate long-term value in its cardiology and oncology portfolios and its animal health business. CFRA has a "buy" rating and $106 price target for MRK stock, which closed at $86.39 on April 3.
Merck is one of the world's largest pharmaceutical companies, and its leading products include cancer drug Keytruda and HPV vaccine Gardasil. Hardy says Keytruda sales growth will moderate in 2026 and beyond heading into the drug's patent expiration in the U.S. market in 2028. That expiration is a significant risk for Merck investors given Keytruda makes up about half of the company's sales, but Hardy says Merck is well diversified and will generate long-term value in its cardiology and oncology portfolios and its animal health business. CFRA has a "buy" rating and $106 price target for MRK stock, which closed at $86.39 on April 3.
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Thermo-Fisher Scientific Inc. (TMO)
Thermo-Fisher Scientific produces analytical instruments and provides laboratory services for life sciences, pharmaceutical and industrial applications. Hardy says market conditions for life sciences tools and services companies will gradually improve in 2025, which is good news for the largest company in the field. He says Thermo-Fisher has a large fill/finish manufacturing network, which is exposed to the high-growth biologic-based medicines market and is a key differentiating factor for investors. Fill/finish involves filling sterile drugs into containers such as vials and syringes and preparing them for distribution. CFRA has a "buy" rating and $660 price target for TMO stock, which closed at $470.03 on April 3.
Thermo-Fisher Scientific produces analytical instruments and provides laboratory services for life sciences, pharmaceutical and industrial applications. Hardy says market conditions for life sciences tools and services companies will gradually improve in 2025, which is good news for the largest company in the field. He says Thermo-Fisher has a large fill/finish manufacturing network, which is exposed to the high-growth biologic-based medicines market and is a key differentiating factor for investors. Fill/finish involves filling sterile drugs into containers such as vials and syringes and preparing them for distribution. CFRA has a "buy" rating and $660 price target for TMO stock, which closed at $470.03 on April 3.
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Amgen Inc. (AMGN)
Amgen is one of the world's largest biotechnology companies. Hardy says Amgen has a very attractive pipeline of drug candidates in development, and he is particularly optimistic about obesity treatment MariTide. In the short term, Hardy says newly commercialized drugs Tezspire for severe asthma and Lumakras for cancer will be key growth sources for Amgen. Amgen's Amjevita also targets the massive plaque psoriasis market. Hardy says Amgen's Horizon Therapeutics acquisition – especially Horizon's key rare disease drugs Tepezza, Krystexxa and Uplinza – is already having a significant impact on Amgen's financials. CFRA has a "buy" rating and $374 price target for AMGN stock, which closed at $309.85 on April 3.
Amgen is one of the world's largest biotechnology companies. Hardy says Amgen has a very attractive pipeline of drug candidates in development, and he is particularly optimistic about obesity treatment MariTide. In the short term, Hardy says newly commercialized drugs Tezspire for severe asthma and Lumakras for cancer will be key growth sources for Amgen. Amgen's Amjevita also targets the massive plaque psoriasis market. Hardy says Amgen's Horizon Therapeutics acquisition – especially Horizon's key rare disease drugs Tepezza, Krystexxa and Uplinza – is already having a significant impact on Amgen's financials. CFRA has a "buy" rating and $374 price target for AMGN stock, which closed at $309.85 on April 3.
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Boston Scientific Corp. (BSX)
Boston Scientific is a medical device manufacturer that specializes in cardiovascular, rhythm management and medical-surgical equipment. Analyst Paige Meyer says Boston Scientific's management team has not executed well as of late, but she says the company's recently launched products suggest its long-term outlook is attractive. Meyer specifically mentions the Watchman FLX, Farapulse and ACURATE Neo2 as key products for investors to watch. In the next few years, Meyer says these products will help Boston Scientific outperform its peers in earnings per share growth. CFRA has a "buy" rating and $125 price target for BSX stock, which closed at $98.50 on April 3.
Boston Scientific is a medical device manufacturer that specializes in cardiovascular, rhythm management and medical-surgical equipment. Analyst Paige Meyer says Boston Scientific's management team has not executed well as of late, but she says the company's recently launched products suggest its long-term outlook is attractive. Meyer specifically mentions the Watchman FLX, Farapulse and ACURATE Neo2 as key products for investors to watch. In the next few years, Meyer says these products will help Boston Scientific outperform its peers in earnings per share growth. CFRA has a "buy" rating and $125 price target for BSX stock, which closed at $98.50 on April 3.
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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 3% revenue growth for Danaher in 2025 as sales slowly recover. He says China demand will be solid, and clarity on the Chinese government's stimulus program could be a catalyst for Danaher's stock. Hardy is bullish on Danaher's Abcam acquisition, which he says improved the company's drug discovery exposure and supplemented its complex disease mapping capabilities. CFRA has a "buy" rating and $273 price target for DHR stock, which closed at $197.90 on April 3.
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 3% revenue growth for Danaher in 2025 as sales slowly recover. He says China demand will be solid, and clarity on the Chinese government's stimulus program could be a catalyst for Danaher's stock. Hardy is bullish on Danaher's Abcam acquisition, which he says improved the company's drug discovery exposure and supplemented its complex disease mapping capabilities. CFRA has a "buy" rating and $273 price target for DHR stock, which closed at $197.90 on April 3.
Re: Best Health Care Stocks for 2025
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 Paxlovid COVID-19 oral treatment and its Prevnar pneumococcal vaccine. Hardy says activist investor Starboard creates some uncertainty for Pfizer, but he believes Starboard's influence will ultimately benefit the company and its investors in the long term. He says Pfizer's $43 billion Seagen acquisition will also be another major long-term catalyst for Pfizer. CFRA has a "buy" rating and $30 price target for PFE stock, which closed at $24.29 on April 3.
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 Paxlovid COVID-19 oral treatment and its Prevnar pneumococcal vaccine. Hardy says activist investor Starboard creates some uncertainty for Pfizer, but he believes Starboard's influence will ultimately benefit the company and its investors in the long term. He says Pfizer's $43 billion Seagen acquisition will also be another major long-term catalyst for Pfizer. CFRA has a "buy" rating and $30 price target for PFE stock, which closed at $24.29 on April 3.
Re: Best Health Care Stocks for 2025
Stryker Corp. (SYK)
Stryker is a medical technology company that specializes in orthopedics and neurotechnology. Meyer says Stryker's high exposure to outpatient procedures and its impressive Mako robotic orthopedic system make it an attractive health care equipment investment. She says the chronic, progressive nature of the conditions Stryker's orthopedics business addresses will support the segment's volumes over time. Finally, Meyer says Mako spine is on track for a full commercial launch in the second half of 2025, and its shoulder and spine products could be key growth sources moving forward. CFRA has a "buy" rating and $458 price target for SYK stock, which closed at $368.15 on April 3.
Stryker is a medical technology company that specializes in orthopedics and neurotechnology. Meyer says Stryker's high exposure to outpatient procedures and its impressive Mako robotic orthopedic system make it an attractive health care equipment investment. She says the chronic, progressive nature of the conditions Stryker's orthopedics business addresses will support the segment's volumes over time. Finally, Meyer says Mako spine is on track for a full commercial launch in the second half of 2025, and its shoulder and spine products could be key growth sources moving forward. CFRA has a "buy" rating and $458 price target for SYK stock, which closed at $368.15 on April 3.