The American stock markets have had a rough month as investors remain jittery over international tariff fears. While this market downturn has affected most sectors of the economy, healthcare stocks are doing exceptionally well, outperforming the general market as the most successful sector of 2025 so far.
Even as the industry sees overall success, some healthcare stocks are rising above competitors and attracting more investor attention. Each of these stocks has risen in price by at least 30% this year, with some smaller stocks seeing an appreciation of 50% or more. Analysts suggest they could be undervalued right now.
Royalty Pharma Sees 25% YTD Price Appreciation With Institutional Investments
[content-module:Forecast|NASDAQ:RPRX]One of the largest domestic buyers of biopharmaceutical royalties and a leading funder of innovation across the biotech sector, Royalty Pharma (NASDAQ: RPRX) has seen share prices surge nearly 25% since 2024.
Its portfolio, which includes market-leading treatments for conditions like lupus and growth hormone deficiency, puts it in a great position to profit from future royalties, a sentiment supported by analyst estimates and institutional investments.
Analyst ratings for Royalty Pharma are largely positive, with the stock maintaining an aggregate Buy rating from analysts. Institutional buying increased in the fourth quarter of 2024, with share purchases rising to $748 million from just $177 in the third quarter.
RPRX currently carries a potential upside of 29.86% for an aggregate price target of $41.60.
Falling Short Interest May Indicate Good Things to Come for CVS
[content-module:Forecast|NYSE:CVS]Another healthcare stock that's bucking market trends, CVS (NYSE: CVS), has seen an astonishing 50% in share price appreciation since the beginning of the year.
While rising utilization rates through its health insurance partner Aetna resulted in a dip in share prices lasting throughout 2024, new leadership and earnings that beat estimates in Q4 of 2025 could indicate future fairer weather for this stock.
Short interest trends indicate investor confidence, with short interest rates falling by more than 12% since last month.
Stock analysts give CVS a solid Moderate Buy rating, with a 4.25% predicted upside in the next year.
Long-term investors looking for income generation may find CVS to be a particularly appealing investment thanks to its 3.94% dividend yield and 9.97% annualized three-year dividend growth rate.
Tempus AI Sees Improved Financials, 60% YTD Increase in Share Price
[content-module:Forecast|NASDAQ:TEM]As investor interest in AI comes to a peak, Tempus AI (NASDAQ: TEM) is seeing a surge in buying activity, with share prices rising by nearly 60% since the beginning of the year.
This price appreciation comes from the company’s most recent quarterly financial report, which included a series of data points suggesting higher profitability is to come.
Quarterly revenue for Tempus AI increased 35.8% year-over-year to $200.7 million in the fourth quarter of 2024, while gross profit increased 49.7% to $122.1 million.
Tempus AI recently released its Olivia AI-enabled personal health app, which is designed to use AI-assisted insights to provide more personalized health guidance to users.
This feature, along with the company's generative AI R&D segment, could contribute to aggregate Moderate Buy ratings from analysts.
Guardant Health Sees Shares Rise by 50% YTD
[content-module:Forecast|NASDAQ:GH]Guardant Health (NASDAQ: GH) is a leading provider of liquid biopsy tests and oncology products. Since the beginning of the year, its share prices have increased by nearly 50%.
As demand for this type of cancer test increases and adoption becomes more widespread, Guardant Health could be well-positioned to see future growth.
Analyst estimates for Guardant Health indicate confidence in the company’s prospects, with a consensus Buy rating from analysts. While the stock currently carries a modest potential upside of 8.67%, actual revenue has consistently beaten analyst estimates, and predictions project earnings growth next year.
The future of Guardant Health will largely depend on operating expense management alongside product adoption. Guardant’s path to profitability is still uncertain, and high ongoing marketing expenses may be required for years to fully inform healthcare professionals of its test effectiveness.
The company could also face increased competition if multi-cancer detection tests become more widely affordable, making it a riskier pick compared to other healthcare stocks.
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