In this article, we will be taking a look at the 10 high growth healthcare stocks to invest in now.
Global Healthcare Spending Trends and Investment Opportunities
During lean economic times, investing in healthcare stocks is generally regarded as defensive. This is due to the fact that people typically do not cut back on their use of prescription medications or other essential healthcare services, even during difficult financial times. According to the Centers for Medicare and Medicaid Services (CMS), national healthcare spending is projected to reach an estimated $4.8 trillion in 2023 and grow at an annual rate of 5.6% between 2027 and 2032.
Global healthcare spending hit a record high in 2021 at $9.8 trillion, or 10.3% of global gross domestic product (GDP), according to a World Health Organization report released in December 2023. Public health spending, however, continued to rise globally, except for low-income nations, where government health spending fell due to their heavy reliance on foreign assistance. In 2021, high-income countries spent almost $4,000 per capita on health care, while 11% of the world’s population resided in nations that spent less than $50 per person annually. Furthermore, only 0.24% of global health spending went to low-income nations, although making up 8% of the world’s population. According to the report, public spending on health increased significantly during the height of the COVID-19 pandemic, but this growth is unlikely to continue in the long run as nations now prioritize economic issues like high inflation, slowing growth, and rising debt servicing. WHO Assistant Director-General for Universal Health Coverage, Life Course, Dr. Bruce Aylward, stated:
“Sustained public financing on health is urgently needed to progress towards universal health coverage. It is especially critical at this time when the world is confronted by the climate crisis, conflicts and other complex emergencies. People’s health and well-being need to be protected by resilient health systems that can also withstand these shocks.”
This year, the pharmaceutical, medical equipment and supplies, robotics, biotechnology, and neurodegenerative illnesses sub-spaces are the primary ones to watch in the healthcare industry. The emergence and development of glucagon-like Peptide-1 agonists (GLP-1s) is the primary trend of interest in the pharmaceutical industry. These treatments have had a substantial impact on weight loss medications and have completely altered the competitive landscape in this field. Pharmaceutical companies that sell weight-loss medications have also benefited from higher prescription volumes and sales as a result of the development of GLP-1s. For example, BlackRock reported that from 2019 to August 2023, GLP-1 prescription volumes increased at a compound annual growth rate of 45%. The development of Ozempic and Mounjaro, respectively, by top pharmaceutical manufacturers was a major factor in this expansion. Additionally, this has led to a recent increase in the popularity of weight loss medication stocks.
A patient viewing their medical diagnosis on a digital healthcare ecosystem.
Our Methodology
For this article, we screened on stocks with a minimum market capitalization of $10 billion and a 5-year average revenue growth of approximately 30%. These stocks were then ranked according to their revenue growth performance.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Here is our list of the 10 high growth healthcare stocks to invest in now.
10. Globus Medical, Inc. (NYSE:GMED)
Revenue Growth: 26.35%
Globus Medical, Inc. (NYSE:GMED) is a leading medical device company that specializes in developing and manufacturing innovative musculoskeletal solutions. The company primarily focuses on creating implants, surgical instruments, and advanced technologies for spine and orthopedic procedures. With a five-year average revenue growth of over 26%, GMED is one of the best high growth stocks in the healthcare sector.
The Excelsius GPS robotic system and the incorporation of NuVasive’s Pulse platform have positioned Globus Medical, Inc. (NYSE:GMED) at the forefront of technological innovation in spine surgery.
Globus Medical, Inc. (NYSE:GMED) showcased strong financial growth in Q3 2024, with revenue surging 63.1% year-over-year to $626 million which was driven by a 60.3% increase in U.S. sales and a 74.8% rise in international sales. GAAP EPS soared by 3700%, largely attributed to the transformative acquisition of NuVasive, which enhanced its market presence and product portfolio. The company is enhancing manufacturing efficiencies and preparing for insourcing to achieve cost savings in the next two to three years. On the R&D front, GMED launched four new products, including the Excelsius Navigation Hub, its first freehand navigation solution.
At the end of Q3 2024, 36 hedge funds held stakes in Globus Medical, Inc. (NYSE:GMED), according to Insider Monkey’s database. Sculptor Capital emerged as the largest stakeholder, with investments valued at $1.6 billion. Street analysts have assigned the stock a consensus rating of Moderate Buy, with an average price target of $89.20, ranging from $80.00 to $100.00, suggesting a potential 6.71% upside from its current price of $83.59.
9. Neurocrine Biosciences, Inc. (NASDAQ:NBIX)
Revenue Growth: 27.13%
Neurocrine Biosciences, Inc. (NASDAQ:NBIX) is a biopharmaceutical company focused on developing treatments for neurological, endocrine, and psychiatric disorders. The company’s flagship product, Ingrezza (valbenazine), is used to treat tardive dyskinesia and chorea associated with Huntington’s diseases
Neurocrine Biosciences, Inc. (NASDAQ:NBIX) boasts a robust pipeline featuring diverse treatments in various stages of development, making it a strong contender among high growth stocks to invest in now. Highlights include Crinecerfont, recently granted Breakthrough Therapy designation for congenital adrenal hyperplasia (CAH), with a New Drug Application planned for 2024, and NBI-‘770, an oral NMDA NR2B negative allosteric modulator in Phase 2 trials for major depressive disorder. Additionally, the company has the largest portfolio of muscarinic compounds in clinical development, including NBI-‘568 for schizophrenia.
To ensure long-term growth, Neurocrine Biosciences, Inc. (NASDAQ:NBIX) is diversifying its portfolio through various modalities, including small molecules, biologics, and gene therapies. The company aims to advance two gene therapies into clinical trials by 2025 and plans to have at least 20 development candidates by 2027 which creates multiple opportunities for innovation and reducing the risks inherent in drug development.
The company’s Ingrezza sales reached $613 million in Q3 2024, contributing to a raised full-year guidance of $2.3 to $2.32 billion. This represents a robust 25% year-over-year growth at the midpoint. Neurocrine Biosciences, Inc. (NASDAQ:NBIX)’s revenue growth is primarily driven by increased patient demand for INGREZZA across both Tardive Dyskinesia (TD) and Huntington’s Disease Chorea indications. The corporation has announced a $300 million share repurchase plan, indicating confidence in the company’s valuation and future growth prospects. This move is seen as a way to return value to shareholders while maintaining financial flexibility for further investments.
Street analysts hold a consensus Strong Buy rating on the stock. The average 12-month price target is $166.53, with a high of $192.00 and a low of $121.00, representing a 35.07% upside potential.
8. Insmed Incorporated (NASDAQ:INSM)
Revenue Growth: 27.80%
Insmed Incorporated (NASDAQ:INSM) is a global biopharmaceutical company focused on developing and commercializing life-transforming therapies for patients with serious and rare diseases. At its core, the company creates innovative medicines targeting areas of high unmet medical need, particularly in the realm of rare pulmonary disorders and neutrophil-mediated inflammatory diseases.
Insmed Incorporated (NASDAQ:INSM) reported total revenues of $93.4 million for the third quarter, reflecting an 18% increase year-over-year. This growth was primarily driven by its marketed drug, Arikayce, which saw increased demand across all regions. The company posted a net loss of $220.5 million, or $1.27 per share, which was wider than the previous year’s loss of $158.9 million ($1.11 per share). Research and development (R&D) expenses rose by 38% to $150.8 million, while selling, general, and administrative (SG&A) expenses increased by 31% to $118.9 million compared to the same period last year.
Insmed Incorporated (NASDAQ:INSM) is preparing for the potential launch of Brensocatib in mid-2025, with plans to submit a New Drug Application (NDA) to the FDA in Q4 2024. As of Q3 2024, 67 hedge fund holders held shares in the company, as tracked by the Insider Monkey database. The largest stakeholder in the stock was Darwin Global Management With holdings worth $766,301,221.
Street analysts hold a consensus Strong Buy rating on Insmed Incorporated (NASDAQ:INSM), which makes it one of the best high growth stocks to invest in.
7. Natera, Inc. (NASDAQ:NTRA)
Revenue Growth: 39.88%
Natera, Inc. (NASDAQ:NTRA) is a leading genetic testing company that specializes in non-invasive prenatal testing, cancer screening, and organ transplant monitoring.
The company reported exceptional financial results in Q3 2024, with revenue reaching $439.8 million, representing a remarkable 64% year-over-year growth. This significant increase was driven by strong volume growth across its product lines, particularly in oncology testing, which saw a 54% year-over-year increase to 137,000 tests. Natera, Inc. (NASDAQ:NTRA)’s gross margins reached a record 62% in Q3 2024, reflecting improved operational efficiency and a favorable product mix shift towards higher-margin offerings like Signatera. This margin expansion, coupled with strong revenue growth, has positioned the corporation to generate positive cash flow, with $34.5 million in cash generated in Q3 2024.
Natera, Inc. (NASDAQ:NTRA) recently published groundbreaking data from the GALAXY study in Nature Medicine, demonstrating Signatera’s ability to predict overall survival in colorectal cancer patients. This clinical validation strengthens Signatera’s position as a leading MRD test and supports its potential for wider adoption in cancer care. Based on its strong performance, the corporation has raised its full-year 2024 revenue guidance from $1.61 billion to $1.64 billion, implying approximately 50% year-over-year growth.
As of Q3 2024, 62 hedge funds held stakes in the company, according to the Insider Monkey database. Analysts have a consensus Strong Buy rating on the stock, with a 12-month price target averaging $173.00, ranging between $135.00 and $209.00. This indicates a modest potential upside of 3.43% from its current price of $167.26, reflecting positive expectations for the stock’s near-term performance.
6. Genmab A/S (NASDAQ:GMAB)
Revenue Growth: 40.37%
Genmab A/S (NASDAQ:GMAB) is a Danish biotechnology company specializing in innovative antibody therapeutics for cancer and other serious diseases. The company’s core business focuses on developing differentiated antibody-based medicines, leveraging proprietary platforms like DuoBody, HexaBody, and DuoHexaBody to create highly targeted therapies with enhanced efficacy and safety profiles.
According to the analysts, Genmab A/S (NASDAQ:GMAB) has established itself as a major participant in the market thanks to its antibody therapies, with drugs like Darzalex seeing commercial success. Furthermore, Epkinly’s (epcoritamab) recent introduction should be a game-changer. Interestingly, this can serve as the cornerstone of treatment for diffuse large B-cell lymphoma (DLBCL). This gives the company an advantage over rivals in the lymphoma market.
Genmab A/S (NASDAQ:GMAB) reported over DKK 15 billion in revenue for the first nine months of 2024 which shows a 29% year-over-year increase. This growth was driven by a 37% rise in recurring revenue, which now constitutes 92% of total revenue, up from 86% the previous year. Profitability has also shown significant improvement, with operating profit increasing by 27% to over DKK 4.5 billion.
Genmab A/S (NASDAQ:GMAB)’s potential as a high-growth healthcare stock is supported by its expanding portfolio, with eight approved products developed in-house or leveraging its technologies. The company boasts a strong pipeline with ongoing Phase 3 trials for EPKINLY, Rina-S, and acasunlimab, and strategic partnerships with major pharmaceutical firms like AbbVie and Johnson & Johnson enhance its market presence.
As of Q3 2023, 14 hedge fund holders held shares in the company, as tracked by the Insider Monkey database. The largest stakeholder in the company was Renaissance Technologies with shares worth $43,553,115. Street analysts hold a consensus Moderate Buy rating on the stock with an average 12-month price target of $39.00, with estimates ranging from $27.00 to $50.00, representing an 88.86% potential upside from the current price of $20.65.
5. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
Revenue Growth: 65.42%
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is emerging as a high-growth healthcare stock with significant potential for investors. It is a biopharmaceutical company that specializes in developing RNA interference (RNAi) therapeutics, a novel class of medicines based on Nobel Prize-winning science. The company focuses on creating treatments for rare and severe diseases, as well as more common conditions like high cholesterol.
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) reported strong Q3 2024 financial results, with total product revenue reaching $420 million, a 34% year-over-year increase. Revenue from its TTR franchise totaled $309 million, also up by 34%, while the rare disease franchise generated $111 million, reflecting the same growth rate. The company’s revenue growth was primarily driven by rising patient demand for its marketed products, particularly within the TTR franchise.
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is approaching 5,000 patients on treatment with ONPATTRO or AMVUTTRA globally for hATTR polyneuropathy. However, the company estimates that 25,000 to 30,000 patients worldwide suffer from this disease, indicating significant growth potential. The corporation is also preparing for a potential launch in ATTR cardiomyopathy, pending regulatory approval. This expansion could significantly increase Alnylam’s addressable market and drive future growth.
The company is advancing its pipeline with several key developments. It has completed regulatory submissions for vutrisiran in ATTR cardiomyopathy in both the U.S. and EU. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) also initiated a Phase 1 study for ALN-HTT02 targeting Huntington’s disease and reported promising results from a Phase 1 study of mivelsiran for early-onset Alzheimer’s disease. By the end of 2025, the corporation aims to file nine proprietary INDs and potentially 15 new INDs, including partnered programs, significantly expanding its clinical pipeline.
Street analysts have a consensus Moderate Buy rating for the stock, with an average 12-month price target of $313.81. The price target range varies from a low of $205.00 to a high of $400.00, suggesting a potential upside of 28.14% from the stock’s current price of $244.89.
4. BioNTech SE (NASDAQ:BNTX)
Revenue Growth: 83.94%
BioNTech SE (NASDAQ:BNTX) is a German biotechnology company that specializes in developing and manufacturing immunotherapies for patient-specific approaches. At its core, the company focuses on creating messenger RNA (mRNA) therapeutics and vaccines to address serious diseases such as cancer and infectious diseases.
The company stands out as one of the high-growth healthcare stocks to consider for investment in the current market. BioNTech SE (NASDAQ: BNTX) reported Q3 2024 financial results with revenues of €1,244.8 million, up from €895.3 million in Q3 2023. Net profit rose to €198.1 million, from €160.6 million last year, and diluted earnings per share increased to €0.81 ($0.89) from €0.66. The revenue boost was driven by the approval and successful launch of COVID-19 vaccines for the 2024/2025 season. The company anticipates full-year 2024 revenues to be at the lower end of the €2.5-3.1 billion guidance range.
As of Q3 2024, 30 hedge fund holders held shares in the company, as tracked by the Insider Monkey database. The largest stakeholder in the stock was Balyasny Asset Management with shares worth $73.6 million. Street analysts hold a consensus Strong Buy rating on the stock with an average 12-month price target of $137.87, with a high forecast of $171.00 and a low of $121.00. This represents a potential 21.87% upside from its current price of $113.13.
3. Argenx SE (NASDAQ:ARGX)
Revenue Growth: 96.06%
Argenx SE (NASDAQ:ARGX) is a global biotechnology company specializing in developing antibody-based therapies for autoimmune diseases and cancer. At its core, the company creates innovative treatments targeting rare and severe autoimmune conditions, with its flagship product VYVGART (efgartigimod) leading the charge.
Argenx SE (NASDAQ:ARGX) reported strong Q3 2024 results with total operating income of $589 million and product net sales of $573 million, reflecting 20% quarter-over-quarter and 74% year-over-year growth. U.S. net sales were $492 million, and the company achieved a gross margin of 90%. Operating profit was $14 million, with a cash balance of $3.4 billion. The growth was mainly driven by the success of VYVGART in gMG and the strong launch of VYVGART Hytrulo in CIDP.
The company’s CIDP launch exceeded expectations, treating over 300 patients by Q3’s end. Argenx SE (NASDAQ:ARGX) is targeting markets for gMG, and CIDP, and expanding globally, with VYVGART already available to 80% of the gMG population in the EU and early success in Japan’s ITP launch. The corporation is also pursuing additional indications, including myositis.
Street analysts hold a consensus Strong Buy rating on the stock. The average 12-month price target is $665.45 from 23 Wall Street analysts. The target range is between $560.00 and $770.00, representing a 9.82% upside from the last price of $605.92.
2. BeiGene, Ltd. (NASDAQ:BGNE)
Revenue Growth: 122.61%
BeiGene, Ltd. (NASDAQ:BGNE) is a global oncology company that discovers, develops, and commercializes innovative cancer medicines. The company focuses on creating affordable and accessible treatments for various types of cancer, including solid tumors and blood cancers.
BeiGene, Ltd. (NASDAQ:BGNE) is strengthening its global oncology leadership with its R&D and clinical advantages. BRUKINSA leads new patient starts in frontline and relapsed/refractory CLL in the US, along with other B-cell malignancies. The company is also expanding access to its PD-1 inhibitor, TEVIMBRA, for solid tumors globally and building commercial capabilities for its growing pipeline of cancer therapies.
The corporation has been establishing the groundwork for future franchises in the areas of gastrointestinal, lung, and breast cancers using three signature platform technologies: antibody-drug conjugates, protein degraders, and multi-specific antibodies. Additionally, the commercial capabilities were strengthened through strategic alliances with major players in the sector like Novartis and Amgen. Its revenues in the third quarter of 2024 were over $1 billion, whereas those in the same period in 2023 were $781 million. This rise was mostly caused by an 87% increase in BRUKINSA product sales in the US and a 217% increase in sales in Europe.
Baird Asset Management controlled Chautauqua Capital Management, a boutique investment firm, released the third-quarter 2024 investor letter. Here is what the fund said:
“BeiGene, Ltd. (NASDAQ:BGNE) is expected to have excellent top- and bottom-line growth over the next several years, driven by Brukinsa, their best-in-class product in several hematology cancers, with a global market size of approximately $9 billion in 2023. Even though the company is truly global in nature, incorporated in Switzerland and headquartered in Basal, Beijing, and Cambridge, MA, its valuation was depressed due to negative sentiment towards China, as it does have a large R&D and sales team in China. The recent rally in China stocks has somewhat reduced the extreme pessimism seen earlier in the year.”
1. Moderna, Inc. (NASDAQ:MRNA)
Revenue Growth: 128.50%
Moderna, Inc. (NASDAQ:MRNA) is a biotechnology company that specializes in developing messenger RNA (mRNA) therapeutics and vaccines. The company’s primary focus is on creating mRNA-based medicines to treat and prevent various diseases, including infectious diseases, cancer, and rare genetic disorders.
The company revealed positive phase-one trial findings for mRNA-4359, a novel cancer vaccine, in September. The cancer vaccine, which is based on the same mRNA technology as its COVID-19 vaccine, is intended to assist the immune system in differentiating between healthy and malignant cells. Eight of the trial’s 19 participants with advanced solid tumors did not experience tumor progression or the emergence of new tumors. The biotech company claims that there were no significant negative effects and that the vaccination was well tolerated.
Moderna, Inc. (NASDAQ:MRNA) also reported impressive Q3 2024 financial results, largely driven by Spikevax, their COVID-19 vaccine, which generated 50% more revenue than anticipated. As one of the 10 high growth healthcare stocks to invest in now, the company recorded $13 million in net income and $1.9 billion in revenue. Moderna projects its annual product sales will continue to range between $3 billion and $3.5 billion.
Baron Health Care Fund made the following comment about Moderna, Inc. (NASDAQ:MRNA) in its Q1 2023 investor letter:
“Moderna, Inc. (NASDAQ:MRNA) is a leader in the emerging field of mRNA-based vaccines and therapeutics and was one of the three main producers of the COVID vaccine. Shares fell during the quarter. We believe as COVID shifts away from pandemic status and becomes an increasingly commercial market (rather than government funded), there is increasing investor uncertainty around what a booster market could look like, which is pressuring shares. Looking beyond COVID, we think Moderna has the potential to disrupt the biopharmaceutical industry, from infectious disease vaccines to oncology, and we remain shareholders.”
Overall, MRNA ranks first among the 10 high growth healthcare stocks to invest in now. While we acknowledge the potential of healthcare companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MRNA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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