2 Healthcare Stocks That Have Doubled Over the Last Year but Still Have Room to Run

Key Points

• Hims & Hers Health is unlocking new sources of growth potential, and its balance sheet is flourishing.

• Doximity is a prime platform for advertisers, and the profits are pouring in.

• 10 stocks we like better than Hims & Hers Health ›

It's been a wild first half of the year for stocks in 2025, but finding the right companies for your portfolio is a very personal process. You need to consider the type of stocks you want to buy, the industries and sectors you gravitate toward, the amount of capital you have to invest, and your own personal risk tolerance.

If you have cash to invest in the stock market right now, and you're looking for growth stocks that could make smart additions to the basket of businesses you own, there are names to be found across a range of industries, including healthcare. Here are two healthcare stocks that have at least doubled over the past 12 months but still look poised to deliver favorable returns for shareholders in the next three to five years.

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1. Hims & Hers Health

Hims & Hers Health (NYSE: HIMS) has witnessed a stock run-up of more than 200% over the trailing-12-month period. In contrast, the S&P 500 is up only about 18% in that same time frame. This boom in the company's share price has occurred for a few reasons. Investors were particularly excited about the company's ability to offer affordable, compounded GLP-1 drugs for weight loss amid shortages of branded versions, and that fueled significant revenue growth and share-price appreciation.

Image source: Getty Images.

However, Hims & Hers can no longer mass-produce compounded drugs like semaglutide because the U.S. Food and Drug Administration declared the shortage resolved. While the company may still offer personalized doses where clinically applicable, its primary weight loss offerings are shifting to oral medications and liraglutide. In fact, Novo Nordisk, the maker of Wegovy (semaglutide for weight) and Ozempic (semaglutide for diabetes), ended its partnership with Hims & Hers, citing concerns over the latter company's promotion and sales of compounded semaglutide.

While the company's offerings may evolve in the coming months and years, it has other sources of growth to lean on besides the weight loss segment. Hims & Hers' areas of focus include sexual health, hair loss, dermatology, mental health, and primary care. The platform also provides access to both over-the-counter and prescription treatments via online consultations with licensed healthcare professionals, and most of its revenue still comes from recurring subscriptions paid by healthcare consumers.

The recent acquisition of Zava, a European digital health platform, seems to have boosted investor confidence in the future of the business outside of its ambitions in the weight loss industry. The addition of Zava to Hims & Hers' ecosystem will expand its reach into the U.K., Ireland, France, and Germany. Hims & Hers also plans to launch its platform in Canada in 2026.

Revenue grew by 110% year over year in the first quarter, and the company is building upon an improving track record of profitability. Hims & Hers also delivered free cash flow of about $50 million in Q1. This business has a lot of potential.

2. Doximity

Doximity (NYSE: DOCS) has seen shares pop by a bit more than 100% since this time one year ago. Doximity is known as the largest digital platform for U.S. medical professionals. It serves as a professional and social network for healthcare professionals including doctors, nurse practitioners, and physician assistants, and offers a wide variety of tools for communication, news, and career management.

Doximity provides a curated newsfeed with the latest medical news and research relevant to different specialties, and also offers tools for job searches, salary comparisons, and reputation management. The platform even provides telehealth solutions, enabling virtual patient visits and consultations.

The platform is free for healthcare professionals to use. This free access includes Doximity Dialer, a feature that allows secure communication with patients using a customized calling tool. The platform also offers free digital fax lines and access to Doximity Scribe, an AI-powered note-taking tool for verified clinicians. So, how does Doximity make money? From advertising and selling information.

Doximity's platform is a prime digital marketing and advertising tool for pharmaceutical manufacturers and healthcare systems (like hospitals). These entities pay Doximity to advertise and promote their products and services to targeted medical professionals. Health systems and medical recruiting firms also pay Doximity to access its database of medical professionals for recruitment and hiring purposes.

In Doximity's fiscal 2025, which ended March 31, revenue increased 20% from the prior fiscal year to $570.4 million. The company reported net income of $223.2 million, up 51% year over year, with free cash flow spiking 50% to $266.7 million. This healthcare stock is really an advertising business at its core, and a profitable one at that. These factors could induce some investors to take another long look at this top stock and I think it has room to run.

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Rachel Warren has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Doximity and Hims & Hers Health. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.