From Yahoo Finance: 2025-04-01 09:49:00

In 2024, healthcare stocks struggled, lagging behind tech and AI due to market uncertainties and policy challenges. The sector later improved with increased demand for delayed medical procedures. However, life sciences companies faced lower demand, and policy concerns weighed on insurers offering Medicare Advantage plans.

In Q1 of 2025, healthcare stocks outperformed the broader market, a sharp contrast to previous years. Despite challenges, healthcare remains vital, driven by increasing demand. Healthcare is the fourth largest sector in the market, with innovation fueling growth in biotech and pharmaceuticals. Investors are cautious amid potential policy shifts under the new administration.

Concerns arise over potential budget cuts affecting healthcare organizations. The Department of Government Efficiency aims to cut $1 trillion from the budget, impacting healthcare spending. Hospital mergers rebound despite federal antitrust policies. Billionaire investors like Carl Cook and Ronda Stryker remain confident in the healthcare sector’s future, contributing to innovation.

CVS Health Corporation (NYSE:CVS) is among the best healthcare stocks according to billionaires, favored by 17 investors. In Q4 2024, CVS reported nearly $98 billion in revenue, with growth in healthcare benefits and pharmacy segments. CVS divested its Medicare Shared Savings Program business to Wellvana, maintaining a strategic minority stake.

CVS ranks 9th on the list of best healthcare stocks according to billionaires. While CVS shows promise, some AI stocks may offer greater returns within a shorter timeframe. Investors can explore AI stocks for potential growth opportunities. For more insights, check out the list of 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.



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