3 Healthcare Stocks to Target This Week

Healthcare companies are pushing the status quo by innovating in areas like drug development and digital health. Shareholders who bet on the industry have seen decent returns lately as healthcare stocks were up 5.7% over the past six months, almost identical to the S&P 500.

Nevertheless, investors should tread carefully as the sector is heavily regulated, and businesses can be negatively impacted if the rules change. With that said, here are three healthcare stocks we think can generate sustainable market-beating returns.

Natera (NTRA)

Market Cap: $28.08 billion

Founded in 2003 as Gene Security Network before rebranding in 2012, Natera (NASDAQ:NTRA) develops and commercializes genetic tests for prenatal screening, cancer detection, and organ transplant monitoring using its proprietary cell-free DNA technology.

Why Is NTRA a Top Pick?

1. Products are reaching more customers as its tests processed averaged 19.5% growth over the past two years
2. Adjusted operating profits increased over the last two years as the company gained some leverage on its fixed costs and became more efficient
3. Free cash flow flipped to positive over the last five years, showing the company is at an important crossroads

Natera is trading at $198.35 per share, or 10.6x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

ResMed (RMD)

Market Cap: $36.67 billion

Founded in 1989 to address the then-underdiagnosed condition of sleep apnea, ResMed (NYSE:RMD) develops cloud-connected medical devices and software solutions that treat sleep apnea, COPD, and other respiratory disorders for home and clinical use.

Why Could RMD Be a Winner?

1. Constant currency growth averaged 9% over the past two years, showing it can expand globally regardless of the macroeconomic environment
2. Additional sales over the last five years increased its profitability as the 14.2% annual growth in its earnings per share outpaced its revenue
3. Free cash flow margin jumped by 19.7 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

ResMed’s stock price of $252.84 implies a valuation ratio of 21.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Globus Medical (GMED)

Market Cap: $11.78 billion

With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE:GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures.

Why Are We Fans of GMED?

1. Steady constant currency growth over the past two years shows the company can pursue its global ambitions, even in uncertain economic times
2. Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 22.8% annually
3. Robust free cash flow margin of 16.5% gives it many options for capital deployment

At $87.12 per share, Globus Medical trades at 20x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.