3 Healthcare Stocks with Exciting Potential
Healthcare companies are pushing the status quo by innovating in areas like drug development and digital health. Players catalyzing medical advancements have benefited from elevated demand, and their momentum is only rising as the industry has posted a 19.9% gain over the past six months, beating the S&P 500 by 9.1 percentage points.
Nevertheless, investors should tread carefully as the sector is heavily regulated, and businesses can be negatively impacted if the rules change. With that said, here are three resilient healthcare stocks at the top of our wish list.
AbbVie (ABBV)
Market Cap: $395.8 billion
Born from a 2013 spinoff of Abbott Laboratories' pharmaceutical business, AbbVie (NYSE:ABBV) is a biopharmaceutical company that develops and markets medications for autoimmune diseases, cancer, neurological disorders, and other complex health conditions.
Why Are We Positive On ABBV?
- Dominant market position is represented by its $59.64 billion in revenue, which creates significant barriers to entry in this highly regulated industry
- Robust free cash flow margin of 36.6% gives it many options for capital deployment
- ROIC punches in at 16.7%, illustrating management’s expertise in identifying profitable investments
At $224.05 per share, AbbVie trades at 16x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Insulet (PODD)
Market Cap: $20.71 billion
Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ:PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line.
Why Will PODD Outperform?
- Average constant currency growth of 26.8% over the past two years demonstrates its ability to grow internationally despite currency fluctuations
- Free cash flow margin expanded by 32.6 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Improving returns on capital reflect management’s ability to monetize investments
Insulet’s stock price of $294.37 implies a valuation ratio of 49.1x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
Cencora (COR)
Market Cap: $67.15 billion
Formerly known as AmerisourceBergen until its 2023 rebranding, Cencora (NYSE:COR) is a global pharmaceutical distribution company that connects manufacturers with healthcare providers while offering logistics, data analytics, and consulting services.
Why Should You Buy COR?
- Massive revenue base of $321.3 billion gives it meaningful leverage when negotiating reimbursement rates
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 15.1% exceeded its revenue gains over the last five years
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Cencora is trading at $346.19 per share, or 19.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.