4 Healthcare Stocks With Massive Gains—and More to Come

Market Overview - The American stock markets have experienced a downturn due to international tariff fears, impacting most sectors, while healthcare stocks have outperformed the general market in 2025 [1] Healthcare Sector Performance - Healthcare stocks are rising above competitors, with some appreciating by at least 30% this year, and smaller stocks seeing increases of 50% or more, indicating potential undervaluation [2] - Royalty Pharma has seen a 25% year-to-date price appreciation, with a current price of $31.37 and a 12-month price forecast of$41.60, suggesting a 32.61% upside [2][4] - CVS Health has experienced a 50% increase in share price since the beginning of the year, with a current price of $67.13 and a 12-month price forecast of$70.41, indicating a 4.89% upside [5][6] - Tempus AI has seen a 60% increase in share price year-to-date, with a current price of $47.83 and a 12-month price forecast of$61.18, suggesting a 27.92% upside [8][9] - Guardant Health's share prices have risen nearly 50% since the beginning of the year, with a current price of $43.14 and a 12-month price forecast of$48.95, indicating a 13.47% upside [11][12] Institutional Investments and Analyst Ratings - Royalty Pharma has seen significant institutional buying, with purchases rising to $748 million in Q4 2024 from$177 million in Q3 2024, and maintains a Buy rating from analysts [3] - CVS Health's short interest has fallen by over 12%, indicating increased investor confidence, and it has a Moderate Buy rating from analysts [7] - Tempus AI's quarterly revenue increased by 35.8% year-over-year to $200.7 million, with gross profit rising by 49.7$122.1 million, contributing to its positive analyst ratings [9][10] - Guardant Health has a consensus Buy rating from analysts, with actual revenue consistently beating estimates, although its path to profitability remains uncertain [13][14]