5 Top Healthcare Stocks to Buy for High Returns in 2025

Five healthcare stocks with strong growth prospects have received Strong Buy ratings from analysts and carry Outperform Smart Score. UnitedHealth, Thermo Fisher, Abbott Laboratories, Summit Therapeutics, and Sarepta Therapeutics offer potential upside of 23%, 26.6%, 18.5%, 94%, and 51.7% respectively. These stocks are known for their resilient demand, advancements in technology, and reliable dividend payouts.

The healthcare sector has experienced significant growth in 2024, driven by higher volumes, improved occupancy, and expansion initiatives. Elective surgeries and non-urgent procedures have witnessed a substantial increase, resulting in a volume rise [1]. Advancements in technology, consumer-centric healthcare models, and health equity have further benefited companies in the sector. However, challenges such as workforce shortages, margin pressures, and regulatory uncertainty persist [1].

In the face of these challenges, the healthcare industry is embracing digital health technologies to improve operational efficiencies and patient experiences. Generative AI (gen AI) is gaining traction, with applications ranging from administrative tasks like claim processing to clinical applications, such as personalized treatment planning [1].

Despite efforts to lower inflation by cutting interest rates, healthcare organizations are grappling with rising medical costs. To address this, they are exploring ways to expand access through digital health solutions, improve cost transparency, and develop products catering to a broader range of consumers [1].

Five healthcare stocks with strong growth prospects, according to analysts and carrying an Outperform Smart Score, are UnitedHealth (UNH), Thermo Fisher Scientific (TMO), Abbott Laboratories (ABT), Summit Therapeutics (SMMT), and Sarepta Therapeutics (SRPT) [2].

1. UnitedHealth (UNH)
UnitedHealth, a leading healthcare company, offers a range of products and services, including insurance, pharmacy benefits, and medical care. With a potential upside of 23%, UnitedHealth boasts resilient demand and a robust dividend payout [2]. The company's focus on digital health technologies, such as telehealth and AI-driven tools, positions it well for long-term growth [1].
2. Thermo Fisher Scientific (TMO)
Thermo Fisher Scientific, a global leader in scientific research and healthcare, has a potential upside of 26.6%. The company's diverse portfolio includes laboratory equipment, biotechnology products, and services, making it a key player in the healthcare sector [2]. Thermo Fisher's commitment to innovation and digitalization, such as its recent acquisition of PPD, a leading global contract research organization, further strengthens its growth prospects [1].
3. Abbott Laboratories (ABT)
Abbott Laboratories, a diversified healthcare company, offers a range of products and services, including medical devices, pharmaceuticals, and diagnostics. With a potential upside of 18.5%, Abbott Laboratories has a solid dividend payout and a resilient demand for its products [2]. The company's focus on digital health technologies, such as its connected health devices and AI-driven diagnostics, positions it well for growth in a digitalizing healthcare landscape [1].
4. Summit Therapeutics (SMMT)
Summit Therapeutics, a clinical-stage biopharmaceutical company, has a potential upside of 94%. The company is focused on developing innovative therapies for genetic diseases, particularly in neurodegeneration and inflammation [2]. With a strong pipeline of potential treatments and a commitment to innovation, Summit Therapeutics offers significant growth prospects [1].
5. Sarepta Therapeutics (SRPT)
Sarepta Therapeutics, a leading gene therapy company, has a potential upside of 51.7%. The company's focus on developing and commercializing gene therapies for rare and life-threatening genetic diseases positions it well for long-term growth [2]. With a strong pipeline of potential treatments and a commitment to innovation, Sarepta Therapeutics offers significant growth prospects in the growing gene therapy market [1].

In conclusion, the healthcare sector is poised for growth in 2024, driven by higher volumes, improved occupancy, and advancements in technology. UnitedHealth, Thermo Fisher, Abbott Laboratories, Summit Therapeutics, and Sarepta Therapeutics are five healthcare stocks with strong growth prospects, offering potential upsides of 23%, 26.6%, 18.5%, 94%, and 51.7%, respectively. These companies' commitment to innovation, digitalization, and resilient demand positions them well for long-term growth in a digitalizing and evolving healthcare landscape.

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