The 10 Best Healthcare Stocks to Buy Right Now

These are the best healthcare stocks to buy now, featuring undervalued leaders across biotech, medical devices, and health insurance

Healthcare remains one of the most attractive sectors for long-term investors, combining defensive stability with innovation-driven growth. Demand for medical services continues to rise as populations age, chronic diseases increase, and new technologies improve patient outcomes. Several high-quality companies in the sector are currently trading below their estimated fair value, creating compelling opportunities for investors seeking resilience and value.

This list highlights the best healthcare stocks to buy, based on Morningstar’s fair value estimates, economic moat ratings, and long-term business fundamentals.

Why Healthcare Stocks Stand Out

Healthcare stocks are often considered defensive because people continue to need medical care regardless of economic conditions. In addition, many healthcare companies benefit from recurring revenue, high switching costs, and strong intellectual property. Morningstar data shows that while the broader market has posted solid gains, healthcare valuations still lag in select areas—making this an attractive entry point for patient investors looking for the best healthcare stocks to buy.

1. Baxter International (BAX)

Baxter International is one of the most undervalued names in the medical supplies space. The company provides essential hospital products such as IV solutions, infusion pumps, and patient monitoring systems. After spinning off its renal care business, Baxter is refocusing on higher-margin medical technologies. Morningstar believes easing supply-chain pressures and improving hospital utilization could drive a meaningful earnings recovery.

2. Coloplast (CLPBY)

Denmark-based Coloplast is a global leader in ostomy and continence care, earning a wide economic moat rating from Morningstar. The company’s strength lies in patient-centric innovation and brand loyalty. While competition exists in wound care, Morningstar expects long-term growth as Coloplast expands further into the U.S. market and higher-value biologic therapies.

3. Fresenius Medical Care (FMS)

Fresenius Medical Care is the world’s largest dialysis provider, operating thousands of clinics worldwide. Its vertically integrated model—combining clinics with proprietary equipment—creates operational efficiency and cost advantages. Despite regulatory and cost pressures, Morningstar expects steady demand growth driven by rising rates of kidney disease, especially in emerging markets.

4. Align Technology (ALGN)

Align Technology dominates the clear aligner market with its Invisalign brand. The company benefits from a vast network of trained dental professionals and a growing portfolio of digital dental tools. Morningstar sees significant growth potential in teen orthodontics and global adoption of digital dentistry, making Align one of the best healthcare stocks to buy for growth-oriented investors willing to accept higher volatility.

5. Elevance Health (ELV)

Elevance Health, formerly Anthem, is one of the largest U.S. health insurers and the biggest operator of Blue Cross Blue Shield plans. Its strong local market positions help it negotiate favorable contracts with providers. Morningstar highlights Elevance’s push into value-based care and integrated pharmacy services as key drivers of long-term earnings growth.

6. BioMarin Pharmaceutical (BMRN)

BioMarin focuses on treatments for rare genetic diseases, a niche with high barriers to entry and strong pricing power. Its flagship drug, Voxzogo, targets achondroplasia and is expected to be a major growth engine. Morningstar believes BioMarin’s expanding pipeline and improving profitability profile position it among the best healthcare stocks to buy for investors seeking biotech exposure with reduced binary risk.

7. Humana (HUM)

Humana is a leader in Medicare Advantage, one of the fastest-growing segments of U.S. healthcare. The company’s integrated approach—combining insurance, primary care, and pharmacy services—helps control costs while improving patient outcomes. Morningstar expects near-term pressure but sees strong earnings acceleration later in the decade as utilization trends normalize.

8. ICON plc (ICLR)

ICON is a global contract research organization that helps pharmaceutical and biotech firms conduct clinical trials. As drug development becomes more complex, outsourcing demand continues to grow. Morningstar views ICON’s scale, regulatory expertise, and operational efficiency as durable competitive advantages supporting long-term value creation.

9. Koninklijke Philips (PHG)

Philips operates across imaging, diagnostics, and connected care. Although past product recalls hurt investor confidence, Morningstar believes the company’s core imaging franchise remains strong. Rising global demand for diagnostic equipment and improving margins could help Philips regain credibility, placing it among the best healthcare stocks to buy for turnaround-focused investors.

10. Zoetis (ZTS)

Zoetis is the global leader in animal health, benefiting from strong pricing power and growing spending on companion animals. With a wide economic moat, the company is well-positioned to outperform peers as pets increasingly receive advanced medical treatments. Morningstar expects Zoetis to deliver consistent growth and above-average margins, cementing its place among the best healthcare stocks to buy for long-term portfolios.