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5 Best-Performing Health Care Stocks for July 2026
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5 Best-Performing Health Care Stocks for July 2026
Health care spending accounts for nearly one-fifth of the U.S. economy. Here’s what you need to know about health care stocks, including the best-performing companies this month.
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9 years of experience Expertise Stocks ETFs economic newsSam Taube writes about investing for NerdWallet. He has covered investing and financial news since earning his economics degree from the University of Maryland in 2016. Sam has previously written for Investopedia, Benzinga, Seeking Alpha, Wealth Daily and Investment U, and has worked as an editor for Investment U, Wealth Daily and Haven Investment Letter. He is based in Brooklyn, New York.
Sam Taube writes about investing for NerdWallet. He has covered investing and financial news since earning his economics degree from the University of Maryland in 2016. Sam has previously written for Investopedia, Benzinga, Seeking Alpha, Wealth Daily and Investment U, and has worked as an editor for Investment U, Wealth Daily and Haven Investment Letter. He is based in Brooklyn, New York. Published in Lead Writer + more + more
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13 years of experience Expertise Brokerage accounts stock market cryptocurrencyChris Davis is a Managing Editor on the Investing team. He has passed the Series 65 (Uniform Investment Adviser Law Exam) and covered the stock market, investing strategies, investment accounts and cryptocurrency. His work has appeared in The Associated Press, The Washington Post, MSN, Yahoo Finance, MarketWatch, Newsday and TheStreet.
Chris Davis is a Managing Editor on the Investing team. He has passed the Series 65 (Uniform Investment Adviser Law Exam) and covered the stock market, investing strategies, investment accounts and cryptocurrency. His work has appeared in The Associated Press, The Washington Post, MSN, Yahoo Finance, MarketWatch, Newsday and TheStreet. Published in Managing Editor + more + moreThe health care sector is one of the largest in the U.S. — and that’s not expected to change anytime soon. Health spending is expected to reach $5.9 trillion in 2026
The health care sector is one of the largest in the U.S. — and that’s not expected to change anytime soon. Health spending is expected to reach $5.9 trillion in 2026 Peterson-KFF. Health Cost and Affordability Policy Issues and Trends to Watch in 2024. Accessed Mar 20, 2026. .What are health care stocks?
What are health care stocks?Health care stocks are shares of publicly traded companies that offer products and services in the medical industry. Health care stocks include things like hospitals and other medical properties, biotechnology companies, medical equipment companies and insurance companies.
Health care stocks are shares of publicly traded companies that offer products and services in the medical industry. Health care stocks include things like hospitals and other medical properties, biotechnology companies, medical equipment companies and insurance companies.5 best health care stocks by one-year performance
5 best health care stocks by one-year performanceBelow is a list of five of the best-performing health care stocks in the S&P 500, ordered by one-year performance.
Below is a list of five of the best-performing health care stocks in the S&P 500, ordered by one-year performance.The best-performing S&P 500 biotech stock by one-year return is Moderna Inc (MRNA), which is up 142.46%.
The best-performing S&P 500 biotech stock by one-year return is Moderna Inc (MRNA), which is up 142.46%.
The best-performing S&P 500 biotech stock by one-year return is Moderna Inc (MRNA), which is up 142.46%.Ticker
TickerCompany
CompanyPerformance (Year)
Performance (Year)MRNA
MRNAModerna Inc
Moderna Inc142.46%
142.46%INCY
INCYIncyte Corp
Incyte Corp66.52%
66.52%TECH
TECHBio-Techne Corp
Bio-Techne Corp35.98%
35.98%REGN
REGNRegeneron Pharmaceuticals Inc
Regeneron Pharmaceuticals Inc17.95%
17.95%VRTX
VRTXVertex Pharmaceuticals Inc
Vertex Pharmaceuticals Inc10.31%
10.31%Source: Finviz. Data is current as of July 1, 2026, and is intended for informational purposes only.
Source: Finviz. Data is current as of July 1, 2026, and is intended for informational purposes only.» Ready to start investing? See our picks for the best brokers for stock trading
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Types of health care stocks
Types of health care stocksHealth care stocks can be broken down into a few different industries.
Health care stocks can be broken down into a few different industries.Health care facilities and operators
Health care facilities and operatorsWhen most people hear the term “health care,” the first thing that comes to mind is often a hospital. And some health care stocks are companies that own or operate hospitals, other health care facilities and provider organizations.
When most people hear the term “health care,” the first thing that comes to mind is often a hospital. And some health care stocks are companies that own or operate hospitals, other health care facilities and provider organizations.Some of these, such as Medical Properties Trust, are real estate investment trusts (REITs) that own hospital buildings and lease them to operators.
Some of these, such as Medical Properties Trust, are real estate investment trusts (REITs) that own hospital buildings and lease them to operators.Others, such as Tenet Healthcare, are operators that hire and manage doctors, nurses and technicians to provide health care services to patients.
Others, such as Tenet Healthcare, are operators that hire and manage doctors, nurses and technicians to provide health care services to patients.Biotechnology and pharmaceuticals
Biotechnology and pharmaceuticalsThe biotechnology and pharmaceutical industries produce drugs.
The biotechnology and pharmaceutical industries produce drugs.Technically, biotechnology and pharmaceuticals are different things — pharmaceuticals are made from chemicals, while biotechnology is made from living organisms. But in an investing context, “biotech” and “pharma” are used more or less interchangeably.
Technically, biotechnology and pharmaceuticals are different things — pharmaceuticals are made from chemicals, while biotechnology is made from living organisms. But in an investing context, “biotech” and “pharma” are used more or less interchangeably.Medical equipment
Medical equipmentMedical equipment companies produce non-drug health care products. This industry can further be broken down into medical supply companies and medical device companies.
Medical equipment companies produce non-drug health care products. This industry can further be broken down into medical supply companies and medical device companies.Medical supply companies, such as Patterson Companies, produce and distribute basic products used in day-to-day hospital work, including latex gloves and antimicrobial cleaning supplies.
Medical supply companies, such as Patterson Companies, produce and distribute basic products used in day-to-day hospital work, including latex gloves and antimicrobial cleaning supplies.Medical device companies, such as Medtronic, design and manufacture devices used to treat specific health issues, including pacemakers and ventilators.
Medical device companies, such as Medtronic, design and manufacture devices used to treat specific health issues, including pacemakers and ventilators.Health insurance and pharmacy benefit management
Health insurance and pharmacy benefit managementHealth insurers and pharmacy benefit managers are sometimes collectively referred to as “payers,” since their role is to arrange payment for health care services.
Health insurers and pharmacy benefit managers are sometimes collectively referred to as “payers,” since their role is to arrange payment for health care services.Most people are probably familiar with health insurance companies such as UnitedHealth Group. After all, the majority of Americans have private health insurance, which involves paying premiums to an insurer in exchange for coverage of most health care services.
Most people are probably familiar with health insurance companies such as UnitedHealth Group. After all, the majority of Americans have private health insurance, which involves paying premiums to an insurer in exchange for coverage of most health care services.Pharmacy benefit managers like Express Scripts coordinate between insurers, drug companies and health care providers to deliver medications to patients at the lowest price possible (while still making a profit).
Pharmacy benefit managers like Express Scripts coordinate between insurers, drug companies and health care providers to deliver medications to patients at the lowest price possible (while still making a profit).Pros and cons of investing in health care stocks
Pros and cons of investing in health care stocksMany health care stocks offer investors stability and profitability in both good times and bad. But the sector is not without its risks — particularly when the government is involved.
Many health care stocks offer investors stability and profitability in both good times and bad. But the sector is not without its risks — particularly when the government is involved.Pros of health care stocks
Pros of health care stocksRecession resistance: No sector is fully recession-proof, but health care tends to hold up better than most during economic downturns. A 2021 paper from the National Bureau of Economic Research found that health care hiring holds steady during recessions, and sometimes even increases.
Recession resistance: Recession resistance: No sector is fully recession-proof, but health care tends to hold up better than most during economic downturns. A 2021 paper from the National Bureau of Economic Research found that health care hiring holds steady during recessions, and sometimes even increases.Dividends: Health care providers, insurers and established biotech, pharmaceutical and medical equipment companies often have substantial cash flows from which they can pay dividends. About 10% of the dividend aristocrats — S&P 500 stocks that have increased their payouts annually for at least 25 years — are health care companies.
Dividends: Dividends: Health care providers, insurers and established biotech, pharmaceutical and medical equipment companies often have substantial cash flows from which they can pay dividends. About 10% of the dividend aristocrats — S&P 500 stocks that have increased their payouts annually for at least 25 years — are health care companies.Cons of health care stocks
Cons of health care stocksPolitical risk: Universal health care has been a major topic of discussion in the last few elections, and some proposed reforms could reshape the sector in ways that might hurt investors, for better or worse.
Political risk: Political risk: Universal health care has been a major topic of discussion in the last few elections, and some proposed reforms could reshape the sector in ways that might hurt investors, for better or worse.Regulatory risk: Even in today’s privatized U.S. health care system, regulatory actions can make or break a health care company. Failure to win FDA approval can doom an experimental biotech, pharma or medical device company, and many hospitals are dependent on funding from Medicare and Medicaid to continue operating.
Regulatory risk: Regulatory risk: Even in today’s privatized U.S. health care system, regulatory actions can make or break a health care company. Failure to win FDA approval can doom an experimental biotech, pharma or medical device company, and many hospitals are dependent on funding from Medicare and Medicaid to continue operating.How to buy health care stocks
How to buy health care stocksThe first step to invest in health care stocks is to open a brokerage account. Then, you’ll need to figure out how you want to invest. That could mean buying individual stocks or buying funds.
The first step to invest in health care stocks is to open a brokerage account . Then, you’ll need to figure out how you want to invest. That could mean buying individual stocks or buying funds.Individual health care stocks
Individual health care stocksIt might be tempting to invest in specific health care stocks — after all, many of the stocks listed above have performed quite well in recent years.
It might be tempting to invest in specific health care stocks — after all, many of the stocks listed above have performed quite well in recent years.But betting too much on an individual stock can be risky, and buying several individual health care stocks can be expensive. Individual stock-pickers also need to research stocks before buying, which can be time-consuming.
But betting too much on an individual stock can be risky, and buying several individual health care stocks can be expensive. Individual stock-pickers also need to research stocks before buying, which can be time-consuming.Health care stock ETFs
Health care stock ETFsAnother way to benefit from investing in several health care stocks is through an exchange-traded fund (ETF), of which dozens are available.
Another way to benefit from investing in several health care stocks is through an exchange-traded fund (ETF), of which dozens are available.Some health care ETFs, such as the Health Care SPDR Select Sector Fund, are sector-wide ETFs — basically, health care index funds — that include companies from all of the industries discussed above.
Some health care ETFs, such as the Health Care SPDR Select Sector Fund, are sector-wide ETFs — basically, health care index funds — that include companies from all of the industries discussed above.Others are more industry-specific. The iShares U.S. Medical Devices ETF, for example, is focused on the medical devices industry.
Others are more industry-specific. The iShares U.S. Medical Devices ETF, for example, is focused on the medical devices industry.Researching an ETF is generally much quicker than researching each individual stock in that ETF, but it’s still important to do so. Consider looking up an ETF’s portfolio before investing.
Researching an ETF is generally much quicker than researching each individual stock in that ETF, but it’s still important to do so. Consider looking up an ETF’s portfolio before investing.Options and health care stocks
Options and health care stocksHealth care stocks often pay dividends, and advanced investors may be able to generate even more income from them by selling options. That might mean selling put options on health care stocks they want to buy or selling covered calls on health care stocks they already own. Check out our guide to options trading to learn more.
Health care stocks often pay dividends, and advanced investors may be able to generate even more income from them by selling options. That might mean selling put options on health care stocks they want to buy or selling covered calls on health care stocks they already own. Check out our guide to options trading to learn more. Frequently asked questionsNot all health care stocks behave the same way in a portfolio. Big companies, like insurers and facilities operators, are generally less volatile than small companies like biotech startups, and more likely to pay dividends. However, the higher risk for small companies comes with the possibility of higher rewards.
Not all health care stocks behave the same way in a portfolio. Big companies, like insurers and facilities operators, are generally less volatile than small companies like biotech startups, and more likely to pay dividends. However, the higher risk for small companies comes with the possibility of higher rewards.The effects of government policy changes on health care stocks are more complex than you might think, and history suggests that the sector is good at adapting to big reforms. The Health Care SPDR Select Sector Fund actually outperformed the S&P 500 in the decade after the Affordable Care Act was passed in 2010.
The effects of government policy changes on health care stocks are more complex than you might think, and history suggests that the sector is good at adapting to big reforms. The Health Care SPDR Select Sector Fund actually outperformed the S&P 500 in the decade after the Affordable Care Act was passed in 2010.No. Certain health care expenses can be deducted from your taxes under certain circumstances, but any profits you earn from health care stocks are just as taxable as any other stock profits unless you earn them in a tax-advantaged account.
No. Certain health care expenses can be deducted from your taxes under certain circumstances, but any profits you earn from health care stocks are just as taxable as any other stock profits unless you earn them in a tax-advantaged account.Not all health care stocks behave the same way in a portfolio. Big companies, like insurers and facilities operators, are generally less volatile than small companies like biotech startups, and more likely to pay dividends. However, the higher risk for small companies comes with the possibility of higher rewards.
The effects of government policy changes on health care stocks are more complex than you might think, and history suggests that the sector is good at adapting to big reforms. The Health Care SPDR Select Sector Fund actually outperformed the S&P 500 in the decade after the Affordable Care Act was passed in 2010.
No. Certain health care expenses can be deducted from your taxes under certain circumstances, but any profits you earn from health care stocks are just as taxable as any other stock profits unless you earn them in a tax-advantaged account.
Neither the author nor editor held positions in the aforementioned investments at the time of publication.
Neither the author nor editor held positions in the aforementioned investments at the time of publication. Neither the author nor editor held positions in the aforementioned investments at the time of publication.Helpful resources
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