After lagging behind the broader market in 2024, many healthcare stocks are making a comeback this year. Healthcare spending has been continuously soaring and is projected to do so in the coming years due to demographic tailwinds. The industry now accounts for a fifth of the U.S. economy, and it’s a good idea to have exposure to it.
Most executives now hold a favorable view of the industry’s prospects, a notable increase from 52% just a year ago. Moreover, it’s an industry that is more insulated from tariffs and macro risks.
Of course, the top gainers here are not defensive healthcare stocks, but it’s still worth looking into the winners here if you are chasing potential multibaggers.
Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified 15 Energy Stocks that are Up the Most in 2025 in another article.
A robotic arm picking up a product assembly line, displaying the company’s consumer healthcare and wellness offerings.
Methodology
For this article, I screened the best-performing healthcare stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
15. Journey Medical Corp (NASDAQ:DERM)
Number of Hedge Fund Holders In Q4 2024: 3
Journey Medical Corp (NASDAQ:DERM) is a commercial-stage pharmaceutical company that identifies, acquires, and commercializes innovative dermatology products.
The most significant driver of the stock’s surge in 2025 has been the U.S. Food and Drug Administration approval and commercial launch of Emrosi, a 40 mg minocycline hydrochloride modified-release capsule for the treatment of rosacea.
The FDA approved Emrosi in November 2024, ahead of the scheduled PDUFA date, and the company began initial distribution with the first prescriptions filled shortly after. Full-scale promotion of Emrosi started in April 2025, and the Phase 3 clinical trial results, published in JAMA Dermatology in March, demonstrated a best-in-class safety and efficacy profile with all endpoints met and no significant safety issues.
Investors responded positively to Emrosi’s commercial rollout and the company’s strong financial performance, which included meeting all 2024 guidance and reporting $56.1 million in revenue for the year.
The consensus price target of $9.88 implies 32.2% upside.
DERM stock is up 91.05% year-to-date.
14. Nuvectis Pharma Inc (NASDAQ:NVCT)
Number of Hedge Fund Holders In Q4 2024: 5
Nuvectis Pharma Inc (NASDAQ:NVCT) is a clinical-stage biopharmaceutical company developing precision medicines for oncology, with lead candidates NXP800 for ARID1a-mutated ovarian cancer and NXP900, a first-in-class SRC/YES1 kinase inhibitor for solid tumors.
The main catalyst behind the stock’s sharp rise in 2025 has been investor enthusiasm around upcoming and ongoing presentations of NXP900 at the 2025 American Association for Cancer Research Meeting, scheduled for late April. Shares soared 5.28% on April 24, 2025, capping a three-day run with a cumulative gain of 31.41%, as anticipation built for the conference presentations detailing first-in-human clinical data for NXP900 in advanced solid tumors and its potential to overcome resistance in non-small cell lung cancer.
Earlier in the year, Nuvectis completed a $15.5 million public offering in February to fund continued development of NXP800 and NXP900, which further strengthened its balance sheet and positioned the company for key 2025 milestones.
The consensus price target of $15.67 implies 49.35% upside.
NVCT stock is up 93.90% year-to-date.