With persistent macro uncertainty and shifting market trends, healthcare remains one of the most defensive and fundamentally sound sectors for investors.
The US healthcare industry continues to deliver both stability and long-term growth potential.
In the latter half of 2025, these three healthcare stocks emerge as top picks for their compelling mix of innovation and favourable industry trends.
Johnson & Johnson (NYSE: JNJ)
Johnson & Johnson (J&J) is a global healthcare company with its core businesses in innovative medicine and MedTech.
In the first quarter of 2025 (1Q 2025), J&J reported 2.4% year-on-year (YoY) increase in revenue, bringing in US$21.9 billion.
This growth can be attributed to a strong revenue growth of 4.2% YoY in innovative medicine.
A key driver for the rise is the 20.4% YoY in revenue growth in the oncology segment.
This increase is due to medicine such as DARZALEX and ERLEADA experiencing share gains amid market growth.
J&J’s MedTech division recorded a strong 4.1% YoY revenue growth.
The cardiovascular segment led this jump in revenue with a 17% YoY revenue growth.
This growth is due to strong global procedure volumes and successful new product launches.
The firm’s internal forecast for sales of its key products by 2027/2028 is also higher than current market estimates.
For instance, its pipeline product, the intravesical drug releasing system, is forecasted to have three times the product sales compared to current market estimates by 2027/2028.
This presents an opportunity for investors to capitalise on the potential upside which is not yet priced into the stock.
This upside will be driven by J&J’s internal forecasts, which signal confidence in its operations.
Thermo Fisher Scientific Inc (NYSE: TMO)
Thermo Fisher is a top name in biopharmaceutical research, particularly in drug discovery and development.
In 1Q 2025, Thermo Fisher reported revenue of US$10.36 billion, along with organic revenue growth of 1% YoY.
The firm’s net profits climbed 13.5% YoY to US$1.5 billion in 1Q 2025.
This strong growth was supported by the increased operational efficiencies with the partnership with the Chan Zuckerberg Institute for Advanced Biological Imaging.
This partnership pioneers new technologies for improved human cell visualisation, providing scientists with better data insights and accelerating research cycles.
In February 2025, Thermo Fisher also announced a US$4.1 billion acquisition of Solventum’s Purification & Filtration business.
Solventum’s Purification & Filtration business offerings enhance Thermo Fisher’s current bioproduction services.
This acquisition boosts Thermo Fisher’s biologics production capabilities, thereby improving productivity.
This deal also opens opportunities to cross-sell filtration and purification solutions alongside existing bioprocessing offerings.
These developments demonstrate an effective strategic fit and may result in service margin expansion.
UnitedHealth Group Inc (NYSE: UNH)
UnitedHealth Group runs two primary businesses – UnitedHealthcare for healthcare insurance plans and Optum for technology-based healthcare services.
UnitedHealth Group reported a 9.8% YoY increase in revenue in 1Q 2025, reaching US$109.6 billion.
The company’s net margin also improved to 5.7% in the same quarter.
The previous year’s quarter saw a net loss margin of 1.4%.
The better performance was attributed to a strong performance for both UnitedHealthcare and Optum.
In 1Q 2025, UnitedHealthcare’s revenue grew by 12.2% YoY to US$84.6 billion.
This growth was driven by a rise of 700,000 in the number of self-funded commercial plans sold.
Another factor was the increased participation in senior and community-based offerings with 545,000 new members.
In the same period, Optum saw an increase in revenue of 4.6% YoY to US$63.9 billion.
This rise is led by a growth of Optum Rx which had an increase of 13 million scripts from new clients and deepening of existing relationships compared to 2024.
Optum Insight also introduced artificial intelligence claim processing tools which increase productivity by over 20%.
Moving forward, Optum Health announced its continued expansion of value-based care to serve 650,000 new patients in 2025.
Get Smart: Well-positioned to provide better healthcare
As the healthcare landscape transforms, these three companies offer stand-out opportunities amid uncertain markets.
With these companies’ blend of innovation and strong fundamentals, they provide a defensive anchor along with room for growth.
These three stocks are well-positioned to deliver meaningful returns.
It’s a good idea to consider adding this trio into your buy watchlist of growth stocks.
Generative AI is reshaping the stock market, but not in the way most investors think. It’s not just about which companies are using AI. It’s about how they’re using it to unlock new revenue, dominate their markets, and quietly reshape the business world. Our latest FREE report “How GenAI is Reshaping the Stock Market” breaks the hype down, so you can invest with greater clarity and confidence. Click here to download your copy today.
Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses!
Disclosure: Gabriel Lim does not own shares in any of the companies mentioned.
