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.
13. iCAD Inc (NASDAQ:ICAD)
Number of Hedge Fund Holders In Q3 2024: 4
iCAD Inc (NASDAQ:ICAD) is focusing on AI-powered cancer detection and therapy.
The stock is up significantly so far in 2025 due to solid Q4 2024 results. Revenue is expected to reach $5.1 million to $5.3 million. The company had 106 deals, 16 of which were cloud-based, with new and existing customers. It also reported recurring revenue growth at 11% year-over-year, which reached $9.8 million.
Management is scheduled to present at the BTIG MedTech conference in about two weeks. This is already driving a lot of gains as shareholders think that could drive traction.
ICAD stock is up 70.32% year-to-date.
12. Elicio Therapeutics Inc (NASDAQ:ELTX)
Number of Hedge Fund Holders In Q3 2024: 1
Elicio Therapeutics Inc (NASDAQ:ELTX) is a biotech company that makes lymph node-targeted immunotherapies.
The stock has risen sharply so far in 2025 as it secured FDA agreement on some elements of its registrational Phase 3 trial design for ELI-002.
The company achieved full enrollment in its Phase 2 AMPLIFY-7P trial in Q1 2024. Interim DFS analysis is expected in the first half of this year.
Early data has shown a 28.9-month median DFS in Phase 1 patients receiving the 4.9mg dose, with T-cell responses correlating to reduced recurrence risk.
Plus, it raised $10 million via a registered direct offering priced at $7.925 per share.
The consensus price target of $10 implies 7.41% upside.
ELTX stock is up 72.55% year-to-date.
11. Agilon Health Inc (NYSE:AGL)
Number of Hedge Fund Holders In Q3 2024: 24
Agilon Health Inc (NYSE:AGL) operates a value-based healthcare model that focuses on Medicare patients.
The stock has surged significantly so far in 2025 after a strategic restructuring. Agilon Health has exited two unprofitable partnerships and renegotiated payer contracts to focus on higher-margin markets.
It has also reduced its 2025 geography entry costs significantly.
Plus, Medicare Advantage membership grew 37% year-over-year, and it secured improved reimbursement rates for 40% of renewals this year.
The consensus price target of $4.03 implies 18.66% upside.
AGL stock is up 80.53% year-to-date.
10. Invivyd Inc (NASDAQ:IVVD)
Number of Hedge Fund Holders In Q3 2024: 16
Invivyd Inc (NASDAQ:IVVD) is a biopharma company that makes antibody-based treatments. The primary target is COVID-19.
The stock has surged significantly so far in 2025 due to Q4 2024 net product revenue for PEMGARDA surging 48% quarter-over-quarter to $13.8 million. This is on top of Q3’s $9.3 million.
Moreover, operating expenses fell 55% to $32 million in Q4 2024, and this was driven by reduced manufacturing costs.
The company ended 2024 with $69.3 million in cash and $10.9 million in accounts receivable.
The consensus price target of $7.89 implies 692.71% upside.
IVVD stock is up 84.32% year-to-date.
9. Monopar Therapeutics Inc (NASDAQ:MNPR)
Number of Hedge Fund Holders In Q3 2024: N/A
Monopar Therapeutics Inc (NASDAQ:MNPR) is a biotech company that is developing radiopharmaceuticals for oncology and a late-stage treatment for Wilson disease.
The stock is up markedly so far in 2025 due to Monopar securing global rights to develop and commercialize ALXN-1840. This is a Phase 3-ready drug for Wilson disease.
It currently has limited treatments, but this has the potential to address severe symptoms and has driven investor optimism.
The company raised capital with a $17.7 million offering in October 2024 and another $40 million offering in December 2024.
The consensus price target of $43 implies 0.54% upside.
MNPR stock is up 91.95% year-to-date.
8. Akero Therapeutics Inc (NASDAQ:AKRO)
Number of Hedge Fund Holders In Q3 2024: 30
Akero Therapeutics Inc (NASDAQ:AKRO) is a biotech company that makes treatments for metabolic diseases.
The stock has delivered stellar gains so far in 2025 as 39% of patients receiving its drug achieved ≥1 stage improvement in liver fibrosis without worsening of MASH at 96 weeks. This is compared to 15% for placebo.
The results were consistent across both completer analysis and intent-to-treat (ITT) analysis.
The drug seems to have a good safety profile with no deaths in the EFX group and manageable gastrointestinal side effects. This could be a first-in-class therapy for MASH-induced cirrhosis.
It completed an upsized public offering in January and raised $402.5 million by selling 6.4 million shares at $48 each.
The consensus price target of $75.86 implies 41.04% upside.
AKRO stock is up 94.03% year-to-date.
7. Neuronetics Inc (NASDAQ:STIM)
Number of Hedge Fund Holders In Q3 2024: 9
Neuronetics Inc (NASDAQ:STIM) has medical products that use transcranial magnetic stimulation to treat major depressive disorder and anxiety.
The stock has surged so far in 2025 due to it completing the acquisition of Greenbrook TMS. It integrated NeuroStar’s tech with Greenbrook’s network of 95+ U.S. clinics.
The company projects $22 million in annualized cost synergies with 90% already implemented. Moreover, pro forma 2024 revenue reached $129.8 million. This is up from a standalone $74.5 million, and it has 2025 revenue guidance at $145 million to $155 million.
The consensus price target of $4.67 implies 44.03% upside.
STIM stock is up 99.9% year-to-date.
6. Accolade Inc (NASDAQ:ACCD)
Number of Hedge Fund Holders In Q3 2024: 24
Accolade Inc (NASDAQ:ACCD) is a tech-enabled healthcare company.
It has risen significantly so far in 2025 after an acquisition announcement.
Transcarent will acquire Accolade for $7.03 per share in cash. The deal is expected to close in Q2 2025.
The company’s Q2 2025 results showed 10% year-over-year growth and a 277% reduction in net losses.
Management projected first full-year adjusted EBITDA profitability this year.
The consensus price target of $7.55 implies 8.91% upside.
ACCD stock is up 102.63% year-to-date.
5. INmune Bio Inc (NASDAQ:INMB)
Number of Hedge Fund Holders In Q3 2024: 8
INmune Bio Inc (NASDAQ:INMB) is a clinical-stage biotech company.
The stock is up notably so far in 2025 due to its Alzheimer’s disease trial progress. Its Phase 2 AD02 trial completed enrollment in November 2024 with top-line cognitive data expected in Q2 2025.
Early biomarker data showed reductions in ptau-217 and neurofilament light chain. As such, there is potential that this can modify the disease.
In addition, INmune Bio fully repaid its Silicon Valley Bank term loan in December 2024. This eliminated the company’s debt and reduced its cash burn.
The consensus price target of $20.75 implies 105.96% upside.
INMB stock is up 104.82% year-to-date.
4. Compass Therapeutics Inc (NASDAQ:CMPX)
Number of Hedge Fund Holders In Q3 2024: 13
Compass Therapeutics Inc (NASDAQ:CMPX) is a clinical-stage oncology-focused biopharma company.
The stock has risen significantly so far in 2025 due to its clinical progress. Phase 2/3 top-line data for biliary tract cancer (BTC) is expected in Q1 2025. Tovecimig (CTX-009) has the potential for accelerated approval.
Moreover, a Phase 2 trial in DLL4-positive colorectal cancer is planned for mid-2025. CTX-8371 also fully enrolled the third cohort for the Phase 1 dose-escalation study; preliminary data is expected in H2 2025.
There is also a new drug candidate called CTX-10726.
The consensus price target of $11.8 implies 281.26% upside.
CMPX stock is up 109.31% year-to-date.
3. Rapid Micro Biosystems Inc (NASDAQ:RPID)
Number of Hedge Fund Holders In Q3 2024: 3
Rapid Micro Biosystems Inc (NASDAQ:RPID) is a life sciences tech company. It has automated solutions for microbial quality control testing.
The stock has been surging so far in 2025 due to Q4 2024 preliminary results being stellar. It announced Q4 2024 revenue of $8.2 million, which is up 30% year-over-year, with full-year revenue expected at $28.1 million, up 25% year-over-year.
Moreover, gross margins turned positive in Q3 2024. Consumables and services revenue grew 27% in Q4 2024.
RPID stock is up 128.89% year-to-date.
2. GH Research PLC (NASDAQ:GHRS)
Number of Hedge Fund Holders In Q3 2024: 9
GH Research PLC (NASDAQ:GHRS) is a biopharma company that makes psychiatric and neurological therapies.
The stock has surged so far in 2025 due to its Phase 2b trial results for GH001 in TRD. It showed a 15.5-point placebo-adjusted reduction in MADRS (Montgomery-Åsberg Depression Rating Scale) scores by Day 8 (p<0.0001). 57.5% of GH001 patients achieved remission vs. 0% in the placebo group.
Not only that, 77.8% of patients remained in remission at 6 months, with infrequent treatments required.
The company has also Resolved FDA concerns about respiratory toxicity in non-rodent studies. This cleared a hurdle for its Investigational New Drug (IND) application. It now plans to submit a full FDA response in mid-2025 to lift the IND clinical hold.
The consensus price target of $35.67 implies 98.06% upside.
GHRS stock is up 180.7% year-to-date.
1. The Oncology Institute (NASDAQ:TOI)
Number of Hedge Fund Holders In Q3 2024: 8
The Oncology Institute (NASDAQ:TOI) is an oncology group that provides cancer care services in the U.S.
The stock has surged so far in 2025 due to solid financials. Q3 2024 revenue grew 21.8% year-over-year to $99.9 million. This was driven by an 80% surge in Dispensary revenue from oral cancer drugs.
It also achieved its first quarterly cash surplus in 2024. Cash reserves thus increased by $1 million and SG&A expenses have been reduced by 6% year-over-year.
The company signed 13 new capitation contracts in 2024 and this included agreements that contributed over $50 million in annual revenue.
It has also deployed AI-driven treatment algorithms.
The consensus price target of $2.5 implies 169.4% upside.
TOI stock is up 203.4% year-to-date.
While we acknowledge the potential of TOI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TOI 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.
