Healthcare Stocks: Outlook For 2026

Leonard Yaffe2.79K FollowersFollow5ShareSavePlay(12min)CommentsSummaryI am bullish on healthcare stocks, especially pharmaceuticals, due to conservative valuations and robust US healthcare spending growth projected through 2030.Eli Lilly is positioned to dominate the anti-obesity drug market, supported by a strong pipeline and forecasted EPS of $35 in 2026.Novo Nordisk is undervalued with an underappreciated anti-obesity pipeline and promising late-stage drugs, justifying a $70 price target.Demographic trends and the rise in chronic conditions create a powerful, long-term tailwind for healthcare sector growth and innovation. years/iStock via Getty Images I turned very favorable toward healthcare stocks, for the first time in several years, at the beginning of 2025. The rationale was quite simple. Healthcare stocks, especially pharmaceuticals, were selling at conservative valuations. However, the fundamentals for the industry wereThis article was written byLeonard Yaffe2.79K FollowersFollowI am an MD by background who runs a healthcare hedge fund. I worked as a sell-side medical analyst for 20 years, covering pharmaceuticals, medical devices, PBMs and drug distributors.Analyst’s Disclosure:I/we have a beneficial long position in the shares of LLY, NVO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.