2 Strong Healthcare Stock Picks for Growth Investors

The prevalence of chronic health conditions like diabetes, heart disease, and obesity is on the rise in the United States. Such conditions necessitate ongoing care and management, and are among the many factors driving the increasing demand for innovative therapies, as well as the broadly sustained growth in the healthcare sector. While many healthcare companies display more value-oriented profiles, there are certainly growth stocks to be found in this space.

In that vein, here are two strong healthcare stocks that growth investors can consider buying without hesitation right now.

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1. TransMedics Group

TransMedics Group (NASDAQ: TMDX) is a medical device company known for its proprietary Organ Care System (OCS), a portable platform that preserves, monitors, and optimizes donor hearts, lungs, and livers outside the human body for organ transplants. The company also manages a full-service logistics and procurement system called the National OCS Program (NOP).

TransMedics' NOP features its own fleet of aircraft and staff that handle organ retrieval, transportation, and management for transplant centers. The program aims to increase the number of donor organs that reach their intended recipients while they are still viable, and streamline the transplant process.

Now, TransMedics is working on its next-generation heart and lung OCS systems and plans to expand its OCS technology to kidney transplants. TransMedics is also expanding its NOP program internationally. Italy is set to be its first market outside the U.S.

The company is collaborating with Mercedes-Benz to establish a dedicated ground transportation network for organs across Italy, with four initial NOP hubs set to open in the cities of Milan, Rome, Padua, and Bari. The Italian NOP, which is expected to be operational in late 2025 or early 2026, is intended to serve as a foundation for a broader European transplant logistics network.

TransMedics reported great results in the third quarter, with revenue up 32% year over year to $143.8 million, and net income up 477% to $24.3 million. Its services revenue benefited from the ongoing expansion of its aviation fleet, which handled 78% of its NOP air transport missions. If you're a growth investor interested in the healthcare space, this stock could be well worth a second look.

2. Hims & Hers Health

Hims & Hers Health (NYSE: HIMS) has been aggressively entering new specialties as it leverages the continued digitization of healthcare and the ways in which consumers access care solutions to expand its platform.

The company has successfully diversified its portfolio beyond its initial focus on sexual health, hair loss, and mental health. Hims & Hers' weight loss drug business received a lot of attention during the period when, due to a national shortage of semaglutide, the FDA allowed it and other businesses to sell compounded versions of the GLP-1 inhibitor. Since then, the company has shifted its strategy a bit, and now offers personalized doses of GLP-1 drugs. But there are other long-term growth tailwinds for Hims & Hers to benefit from.

Hims & Hers has opportunities in several indications, including sexual health, dermatology, and mental health. The company is also expanding into areas such as hormonal health (testosterone and menopause treatments), longevity, sleep, and preventative care. In September, it launched new offerings for men with low testosterone, including access to compounded versions of enclomiphene, and lab-testing services.

An exclusive partnership with Marius Pharmaceuticals will also provide Hims & Hers customers with access to the FDA-approved branded oral testosterone treatment Kyzatrex starting in 2026. In October, the Hers platform introduced a new specialty for menopause and perimenopause, offering personalized treatment plans for users, including prescription pills, patches, or creams containing hormones like estradiol and progesterone to alleviate symptoms. The Hers platform is expected to bring in $1 billion of revenue for the business in 2026.

Hims & Hers is also expanding its geographic footprint into the U.K., Germany, France, and Ireland via the acquisition of the telehealth platform Zava, and has plans to enter Canada in 2026. This will be a major long-term growth lever for the business.

The company's core subscription model ensures recurring revenue and high retention rates, while its significant retail presence and brand awareness continue to help lower its customer acquisition costs and build loyalty across its offerings. Long-term investors can benefit from this growth story, and a healthcare company that has been consistently expanding its revenue and profits.

Before making any investment, you should conduct your own thorough analysis of the specific company's fundamentals, including its financial health, competitive positioning, and growth prospects. But based on my research, both Hims & Hers or TransMedics look like promising places to put some cash to work.

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