Top Healthcare Stocks to Watch in 2025
The healthcare sector is often considered a relatively stable investment, even during economic uncertainty. While recent market fluctuations have presented challenges, analysts anticipate significant growth potential in several companies. As the U.S. healthcare spending continues to rise, projected to reach $4.8 trillion in 2023 and grow approximately 5.6% annually through 2032, these companies may offer solid long-term investment opportunities.
Here are 10 healthcare stocks that CFRA analysts recommend for 2025:
*As of Dec. 3 close.
Company Profiles
Eli Lilly & Co. (LLY)
Eli Lilly, a pharmaceutical company, develops branded prescription drugs to treat various conditions, including diabetes, cancer, and neurological disorders. Analyst Sel Hardy notes that while the company’s weight loss drug, Zepbound, had sales that fell short of expectations in the last quarter, he maintains a positive long-term outlook. Hardy anticipates growth from the late-stage clinical drug candidates pirtobrutinib (for leukemia and lymphoma) and tirzepatide (for sleep apnea, kidney function, and cardiology). CFRA has a “buy” rating for LLY and a price target of $1,040, with the stock closing at $813.33 on December 3rd.
Johnson & Johnson (JNJ)
Johnson & Johnson is a global leader in pharmaceuticals, medical devices, and consumer health products. Key products include the anti-inflammation drug Stelara, Darzalex (for multiple myeloma and light chain amyloidosis), and the pain relief drug Tylenol. Hardy indicates a promising outlook for cancer drugs such as Darzalex and Erleada, as patent protections extend past 2030. He also emphasizes a robust pipeline of additional drug candidates and the positive impact of increasing demand for elective procedures. CFRA has a “buy” rating on JNJ with a $179 price target; the stock closed at $152.36 on December 3rd.
Merck & Co. Inc. (MRK)
Merck, one of the world’s largest pharmaceutical companies, has leading products like the cancer drug Keytruda and the HPV vaccine Gardasil. Hardy suggests that the post-election weakness in Merck’s stock represents a buying opportunity for long-term investors. He points out that Merck’s stock has been affected after the nomination of vaccine critic Robert F. Kennedy Jr. as secretary of the Health and Human Services Department. However, Hardy highlights Merck’s diversification outside of vaccines, including its strength in immunology, oncology, diabetes, cardiovascular disease, and animal health. CFRA has a “buy” rating and a $108 price target for MRK, which closed at $101.85 on December 3rd.
Thermo-Fisher Scientific Inc. (TMO)
Thermo-Fisher Scientific manufactures analytical instruments and provides laboratory services for life sciences, pharmaceutical, and industrial applications. Hardy expects continued improvement in the life sciences tools and services industry throughout 2025, which would benefit Thermo-Fisher. He notes the company’s extensive manufacturing network and its focus on biologic-based medicine and high-growth markets. Hardy believes Thermo-Fisher’s history of innovation and potential acquisition opportunities support its long-term goal of 7% to 9% annual organic sales growth. CFRA has a “buy” rating and a price target of $670 for TMO stock, which closed at $534.42 on Dec. 3.
Amgen Inc. (AMGN)
Amgen is a major biotechnology company generating strong earnings and sales growth. Hardy highlights the promising drug candidates Amgen has in development. Although Phase 2 trial data of Amgen’s injectable GLP-1 obesity drug MariTide were somewhat disappointing, Hardy believes the results were not disastrous. While MariTide didn’t achieve superior weight loss results compared to its competitors, its monthly dosing schedule is potentially attractive. CFRA has a “buy” rating for AMGN with a $320 price target; it closed at $278.32 on December 3rd.
Stryker Corp. (SYK)
Stryker is a medical technology company that specializes in orthopedics and neurotechnology. According to analyst Paige Meyer, Stryker’s Mako robotic orthopedic product and its involvement in outpatient procedures make the stock a compelling long-term healthcare investment. The chronic nature of the conditions that Stryker targets through its orthopedic business will lead to consistent procedure demand. Stryker’s acquisition of Wright Medical Group strengthens its position in extremity procedures, and the company is showing considerable progress in Mako’s spine and shoulder applications. CFRA has a “buy” rating and a $424 price target for SYK stock, which closed at $390.97 on December 3rd.
Pfizer Inc. (PFE)
Pfizer, a leading pharmaceutical company, has a diverse range of drugs used to treat various conditions, including the Comirnaty COVID-19 vaccine, the Paxlovid COVID-19 oral treatment, and the Prevnar pneumococcal vaccine. Hardy considers recent discussions about Pfizer divesting its hospital drugs business positive news, since this strategy could help the company allocate resources to its core high-growth markets. While uncertainty exists due to activist investor Starboard, Hardy believes Starboard may contribute to unlocking value. CFRA has a “buy” rating and a $30 price target for PFE, which closed at $25.56 on December 3rd.
Boston Scientific Corp. (BSX)
Boston Scientific is a medical device manufacturer specializing in cardiovascular, rhythm management, and medical-surgical equipment. Meyer notes the company’s impressive pipeline of products under development and its strong position in key markets. She encourages investors to look past recent issues and concentrate on the key growth drivers, including Watchman FLX, Farapulse, and ACURATE Neo2. Meyer expects Boston Scientific to exceed its peers in earnings growth and deliver a higher return on invested capital in the coming years. CFRA has a “buy” rating for BSX and a $104 price target; it closed at $90.47 on December 3rd.
Bristol-Myers Squibb Co. (BMY)
Bristol-Myers Squibb is a biopharmaceutical company focusing on oncology, immunology, and cardiovascular therapeutics. Key drugs include the blood thinner Eliquis, the lung cancer drug Opdivo, and the multiple myeloma drug Pomalyst. Hardy views Bristol-Myers shares as attractively valued, given the company’s improved growth prospects. The recent acquisition of Karuna Therapeutics, a specialist in psychiatric and neurological conditions, will allow Bristol-Myers to diversify its business in the coming years. An improved sales growth trajectory could offset risks to Eliquis sales in 2026 and beyond, he says. CFRA has a “buy” rating and a $60 price target for BMY stock, which closed at $58.69 on December 3rd.
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 the HIV drugs Biktarvy and Genvoya, along with the antiviral medication Veklury. According to Hardy, Gilead’s oncology business is developing and its core HIV business is stable. He predicts that oncology will progressively contribute a larger portion of Gilead’s overall revenue, largely driven by drugs such as Yescarta and Trodelvy. These drugs could benefit from additional approved indications. CFRA has a “buy” rating and a $107 price target for GILD stock, which closed at $92.49 on December 3rd.
