The healthcare sector is staging a comeback so far in 2025 after two years of underperformance. These stocks could get even hotter due to AI. The healthcare sector was a hot topic during the Stargate project announcement, so it is likely that there are going to be even more breakthroughs here as technology advances.
The S&P 500 Healthcare Index trailed the broader market considerably in the past few years. However, it has risen 7% year-to-date so far. There are many promising drugs awaiting approvals and trials right now. As such, healthcare EBITDA is projected to grow at a 7% CAGR, reaching $987 billion by 2028.
The sector is bouncing back from post-pandemic challenges. Nearly 60% of industry leaders expressed a favorable outlook for 2025. Thus, it is worth looking at the healthcare stocks spearheading the gains.
A close-up of a healthcare professional studying a computer screen with data while consulting with a patient.
Methodology
For this article, I screened the top-performing healthcare stocks year-to-date. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? 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).
15. Microbot Medical Inc (NASDAQ:MBOT)
Number of Hedge Fund Holders In Q3 2024: N/A
Microbot Medical Inc (NASDAQ:MBOT) is a pre-commercial medical company that focuses on robotic endoluminal surgical systems for minimally invasive procedures. It has a single-use, disposable robotic platform for various surgeries.
The stock has risen sharply so far in 2025 after it submitted its FDA 510(k) application for LIBERTY® in December 2024. Clearance is expected in Q2 2025 and the company will gain entry to the $2 billion endovascular robotics market.
Moreover, it has had a successful clinical trial. The ACCESS-PVI trial for LIBERTY® in December 2024 concluded in October 2024 with positive results. Data is expected to be presented early this year.
The company raised $8.6 million in January and this followed a $7 million raise earlier in the month.
The consensus price target of $9 implies almost 400% upside.
MBOT stock is up 60.71% year-to-date.
14. Nutriband Inc (NASDAQ:NTRB)
Number of Hedge Fund Holders In Q3 2024: 1
Nutriband Inc (NASDAQ:NTRB) is a biotech company that focuses on abuse-deterrent transdermal-drug delivery systems. It targets opioids and fentanyl.
The stock is up significantly so far in 2025 due to it planning to submit a New Drug Application (NDA) to the FDA in H1 2025 for its lead product. This could become the first abuse-deterrent fentanyl patch globally.
This NDA relies on a streamlined pathway that requires just a single Phase 1 Human Abuse Potential study. No Phase ⅔ trials are needed.
Analysts are projecting peak U.S. sales of $80 million to $200 million annually for the fentanyl product and $130 million for the opioid product.
The consensus price target of $13 implies 67.31% upside potential.
NTRB stock is up 63.48% year-to-date.
