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My Top 3 Healthcare Stocks to Buy in 2026
The Motley Fool· 2025-12-13 19:37
Core Viewpoint - The healthcare sector is anticipated to potentially rebound in 2026, with several attractive stocks identified for investment, including AbbVie, Eli Lilly, and Intuitive Surgical. AbbVie - AbbVie is recognized as a reliable dividend payer, boasting 54 consecutive payout increases, qualifying it as a Dividend King [3] - The company reported third-quarter revenue of $15.8 billion, reflecting a 9% increase year-over-year [4] - AbbVie's product portfolio includes key drugs such as Vraylar, Botox Therapeutics, Qulipta, Skyrizi, and Rinvoq, which are expected to drive future growth [6][8] - Skyrizi is projected to become the second best-selling drug globally by 2030, with estimated sales of $26.6 billion [7] Eli Lilly - Eli Lilly's third-quarter revenue reached $17.6 billion, marking a significant 54% year-over-year growth [9] - The company is leveraging tirzepatide, marketed as Zepbound and Mounjaro, to sustain its growth trajectory, alongside promising pipeline candidates like orforglipron [10] - Eli Lilly is diversifying its portfolio, with recent launches in oncology, including Jaypirca for mantle cell lymphoma and Inluriyo for breast cancer [13] - The company's strategic investments in artificial intelligence and other therapeutic areas position it favorably for future growth [14] Intuitive Surgical - Intuitive Surgical faces challenges from tariffs and increased competition, particularly from Medtronic's Hugo system [15] - Despite these challenges, the company maintains a strong economic moat with 10,763 da Vinci systems installed, which creates high switching costs for customers [16] - The da Vinci system has over two decades of clinical evidence supporting its effectiveness, allowing Intuitive Surgical to command significant pricing power [18] - The company is expected to benefit from label expansions and increased procedure volumes, which will enhance revenue and margins over time [19]