Healthcare companies are pushing the status quo by innovating in areas like drug development and digital health. Players catalyzing medical advancements have benefited from elevated demand, and their momentum is only rising as the industry has posted a 8.6% gain over the past six months, beating the S&P 500 by 3.5 percentage points.
Nevertheless, investors should tread carefully as the sector is heavily regulated, and businesses can be negatively impacted if the rules change. Keeping that in mind, here is one resilient healthcare stock at the top of our wish list and two best left ignored.
Two Healthcare Stocks to Sell:
Brookdale (BKD)
Market Cap: $3.58 billion
With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE: BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.
Why Are We Hesitant About BKD?
- Sales tumbled by 2% annually over the last five years, showing market trends are working against its favor during this cycle
- Sales are projected to tank by 5.2% over the next 12 months as demand evaporates
- High net-debt-to-EBITDA ratio of 11× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Brookdale is trading at $15.07 per share, or 17.3x forward EV-to-EBITDA. If you’re considering BKD for your portfolio, see our FREE research report to learn more.
Avantor (AVTR)
Market Cap: $5.9 billion
With roots dating back to 1904 and embedded in virtually every stage of scientific research and production, Avantor (NYSE: AVTR) provides mission-critical products, materials, and services to customers in biopharma, healthcare, education, and advanced technology industries.
Why Do We Avoid AVTR?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
- Flat earnings per share over the last five years underperformed the sector average
At $8.76 per share, Avantor trades at 11.1x forward P/E. Dive into our free research report to see why there are better opportunities than AVTR.
One Healthcare Stock to Watch:
Boston Scientific (BSX)
Market Cap: $107.2 billion
Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE: BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.
Why Could BSX Be a Winner?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 16.6% over the past two years
- Additional sales over the last five years increased its profitability as the 26% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin jumped by 7 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Boston Scientific’s stock price of $72.60 implies a valuation ratio of 21.3x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth 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.
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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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
