Health Information Services stocks have become a key focus for investors as AI starts to enter more domains in 2025. Some of the most amazing gains have come in health information services stocks that are utilizing AI to improve research and services in the healthcare sector.
The healthcare information services sector allows investors to gain exposure to a number of growing and emerging technologies including cloud-backed software solutions to physician enablement platforms. Some of the companies in our list are surging based on earnings anticipation while others are increasing in share price because of their upcoming products or revenue growth.
To come up with our list of top 10 health information services stocks outpacing the broader market in 2025, we only considered stocks with a market cap of at least $2 billion that were outperforming the S&P 500 index.
10. Solventum Corporation (NYSE:SOLV)
Solventum Corporation is a healthcare company that manufactures, develops, and markets a range of solutions for critical patient and customer needs. The company operates in dental solutions, filtration & purification, MedSurg, and health information systems segments. Its stock is up 12% so far this year.
SOLV is a spinoff from 3M Company (MMM) and is currently facing activist investor pressure. Nelson Peltz, a billionaire investor, has a 5% stake in the company and is pushing the company to do better, which is one factor driving its recent rally.
When the company was under 3M, it was doing much better than it is doing now, a sentiment summed up perfectly by Trian Fund Management, Peltz’s firm:
In a short period of time, Solventum went from consistently growing organically at a low-to-midsingle digit rate at a mid-to-high 20% operating margin – to a business that is barely growing today at a low-20% operating margin, despite its core end markets continuing to perform well.
The stock is up 50% since Trian first disclosed its stake in the company. However, there is still no clear evidence of whether the management is taking any concrete measures to please the activist investor or change the company’s fortunes.
9. Veeva Systems Inc. (NYSE:VEEV)
Veeva Systems Inc. is a cloud-based software provider for the life sciences industry. The company provides Veeva Vault Medical, Veeva Link, Veeva Commercial Cloud, Veeva Compass, Veeva OpenData, and Veeva Vault PromoMats. Goldman Sachs downgraded VEEV last month and decreased its target price from $261 to $200 due to medium-term risks. The share price declined 4% after the downgrade but the stock rebounded strongly with a 13% uptick this year.
Quarter over quarter, the company is showing a consistent recovery in its performance though there are some uncertainties associated with the industry that interrupted the upward momentum of the stock. Regardless of short-term instability, Veeva is well positioned for long-term growth due to its key area of expertise in life sciences, strong finances, and innovative approach.
This can further be supported by the strong earnings of Q3 and raised guidance for Q4 as the management is optimistic about the company’s prospects. In Q3, the company demonstrated solid revenue growth of 16.8% year-over-year. Net income went up by 37.5% and a 20.32% increase in free cashflows YoY. After strong Q3 earnings, the company has also raised its FY 2025 guidance.
8. HealthEquity Inc. (NASDAQ:HQY)
HealthEquity Inc. is a technology-enabled services platform provider to employers and consumers in the US. It provides health savings accounts and cloud-based platforms for individuals. The company offers its services through a network of health plans, a direct sales force, and benefits brokers & advisors. The stock is up 18% so far this year.
The company’s Health Savings Accounts (HSAs) give consumers the ability to pay for medical expenses tax-free while accruing tax-free interest on their HSA cash. Last month, the company announced that its HSA assets are estimated to have grown by approximately 23% to $31 billion with $17 billion in cash. The company now has 17 million users using its services. The company’s fiscal year closes at the end of March and with a record year on the horizon, investor optimism is quite high causing the rally in the stock.
7. Waystar Holding Corp. (NASDAQ:WAY)
Waystar Holding Corp. is a producer of cloud-based software solutions for healthcare payment processing. The company’s platform provides revenue capture, patient financial care, denial prevention & recovery, reporting & analytics solutions, financial clearance, and claim & payment management solutions. The stock is up 22% this year.
As a relatively new stock on the market, the company doesn’t attract enough investor attention. People normally stay away from IPOs for multiple reasons, one of them being the owners locking in gains once the lock-up period is over. In the case of Waystar Holding, something strange happened. The lock-up period ended on the 4th of December when the stock was trading just below $30. Since that day, it has gained another 50%!
Traders and investors generally sell right before the lock-up period ends and buy lower later. In WAY’s case, the strategy failed. Whether that was due to fundamental reasons or not will become clear once the earnings report comes out next week. Till then, investors should keep this stock on their radar.
6. Privia Health Group Inc. (NASDAQ:PRVA)
Privia Health Group Inc. is a physician enablement company that joins forces with health plans, medical groups, and health systems. The company provides technology and population health tools to improve networks for purchasers and payers, independent providers’ workflows, management services organization, and other processes. Its stock is up 27% this year.
Privia is another relatively unknown healthcare stock that is gaining in 2025. It boasts a strong balance sheet with more than a third of its assets in cash and cash equivalents and almost no long-term debt. That’s because it runs on an asset-light model that also helps it keep healthy cash flows.
However, on the earnings front, the company leaves a lot to be desired. Its revenue growth has been declining since June 2022 with revenues stagnating in the last 6 quarters. Unless the company fixes that, even a good earnings report later this month may only bring a temporary rally in the stock if it hasn’t already priced that in.
5. BrightSpring Health Services, Inc. (NASDAQ:BTSG)
BrightSpring Health Services, Inc. is a community and home-based healthcare services provider company. It offers services to patients through pharmacists and clinical providers. The stock is up 31% this year but over the last 365 days has doubled in value. The rally is driven by an improving topline outlook and strong earnings.
Three weeks ago, the company signed an agreement to sell its Community Living business ResCare Community Living. The sale price was $835 million in cash, which would add $715 million cash to the company’s balance sheet after paying taxes. The strengthening balance sheet provides the company with the cushion to keep innovating even if market headwinds cause future problems. The company is set to announce its earnings report on the 6th of March so volatility is expected after huge bottom-line misses in the last two quarters.
4. Certara Inc. (NASDAQ:CERT)
Certara Inc. is a technology-enabled services and software products provider for market access, biosimulation in drug discovery, regulatory submissions, and preclinical and clinical research. It offers its services to biopharmaceutical companies, academic institutions, animal health, the public sector, life sciences companies, and other industries. The stock is up 43% this year and that’s not surprising considering it is a medical AI stock.
Certara brings AI to drug development and research through its platform Certara.ai. Even though the company announces its detailed earnings on the 26th of February, preliminary numbers suggest a revenue growth of over 10%. The company’s software segment continues to drive a major chunk of the growth at 24% YoY while the services segment contributes a healthy 7%.
Bookings growth of 22% shows the company’s product is gaining traction. Analysts have started noticing the stock with Leerink Partners boosting the stock’s price target from $12 to $13 on the back of improved revenue prospects after the Chemaxon acquisition. Both revenue and profits should improve as we progress further in 2025.
3. Doximity Inc. (NYSE:DOCS)
Doximity Inc. is a digital platform for medical practitioners in the US that provides a network where healthcare professionals can connect to stay up-to-date about the latest news and research. The company mainly offers its services to pharmaceutical manufacturers, physician assistants, medical students, physicians, healthcare systems, and nurse practitioners.
The stock is up over 45% this year as a result of strong Q3 performance as shares surged about 21% right after the company reported its Q3 strong earnings last week.
Doximity also received an upgrade from Leerink Partners with an Outperform rating and a raised price target from $60 to $90. This upgrade came as the company reported solid revenue growth in Q3 exceeding expectations and giving strong guidance for the ongoing quarter. The firm recorded 25% YoY revenue growth with a stable 93% gross margin.
Based on strong financial results, management was able to raise Q4 guidance and now it expects a 13% revenue growth at midpoint, while operating margins are predicted to grow by 6%. The company is improving efficiencies with cost reduction and continuous revenue expansion as it outpaces the broader market in 2025.
According to analyst Michael Cherny:
we see the continuation of core growth trends, driven by better attach rates on early customer buys and the long-term portal expansion as driving an ongoing positive reversion cycle. This should drive consistent upside to EBITDA…
2. Teladoc Health Inc. (NYSE:TDOC)
Teladoc Health Inc. is a digital healthcare services provider that operates in BetterHelp and Teladoc Health integrated care segments. It sells its products and services under the BetterHelp, Teladoc, and Livongo brands. The company serves individual members, hospitals & health systems, employers, insurance & financial services companies, and health plans. After suffering losses in the previous year the stock is up over 59% this year.
TDOC has recently entered into a definitive contract to acquire Catapult Health, a digital preventive care services supplier. This agreement is valued at $65 million in cash with an additional $5 million in performance-based compensation. The company intends to implement Catapult Health’s patient-focused approach to personalized supportive care and at-home testing, improving its comprehensive care solutions.
In addition to this, the company also announced a collaboration with Amazon.com (AMZN) last month to increase the availability of its chronic condition programs. As per the collaboration, qualifying Amazon customers can take advantage of Teladoc’s chronic condition management programs such as pre-diabetes, diabetes, weight management, and hypertension through Amazon’s Health Benefits Program.
1. Tempus AI Inc. (NASDAQ:TEM)
Tempus AI Inc. is a healthcare technology company that provides polymerase chain reaction profiling, molecular genotyping, next-generation sequencing diagnostics, and other anatomic and molecular pathology testing services. The company serves pharmaceutical companies, researchers, healthcare providers, biotechnology companies, and other third parties. The stock is showing a significant uptick gaining over 169% this year.
Tempus AI has launched a new xT CDx, an FDA-approved Next-Generation Sequencing in vitro diagnostic device last month which is available to all healthcare professionals across the country. xT CDx offers a detailed view with one of the most comprehensive gene panels available. It examines 648 genes to identify solid tumors and also crucial insight to support treatment decisions for colorectal cancer patients.
Ezra Cohen, MD, CMO of Oncology at Tempus said:
This is consistent with the goal of improving the outcomes for all of their patients, and we look forward to providing xT CDx nationally to make that possible.
In addition to this, the company achieved another milestone with the launch of its AI-based personalized health concierge app known as Olivia. The company generates only a small amount of earnings through its AI apps business. AI applications generated only 1% of the total TEM’s revenue in 2023 and 1.5% in 2024. However, as AI development progresses in 2025, this could become a significant driver of future growth for the company.
Tempus AI is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held TEM at the end of the third quarter which was 18 in the previous quarter. While we acknowledge the potential of TEM as a leading AI investment, our conviction lies in the belief that some 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 as promising as TEM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
