Personal health and wellness is one of the many secular tailwinds for healthcare companies. But speed bumps such as inventory destockings have persisted in the wake of COVID-19, limiting growth. This has capped the upside for healthcare stocks lately as the industry’s flat return over the past six months has trailed the S&P 500’s 15.9% gain.
Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. Keeping that in mind, here are two resilient healthcare stocks at the top of our wish list and one best left ignored.
One Healthcare Stock to Sell:
Integer Holdings (ITGR)
Market Cap: $3.55 billion
With its name reflecting the mathematical term for "whole" or "complete," Integer Holdings (NYSE: ITGR) is a medical device outsource manufacturer that produces components and systems for cardiac, vascular, neurological, and other medical applications.
Why Are We Hesitant About ITGR?
- Subscale operations are evident in its revenue base of $1.79 billion, meaning it has fewer distribution channels than its larger rivals
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 5.3 percentage points
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $101.34 per share, Integer Holdings trades at 15x forward P/E. Read our free research report to see why you should think twice about including ITGR in your portfolio.
Two Healthcare Stocks to Watch:
Cigna (CI)
Market Cap: $80.82 billion
With roots dating back to 1792 and serving millions of customers across the globe, The Cigna Group (NYSE: CI) provides healthcare services through its Evernorth Health Services and Cigna Healthcare segments, offering pharmacy benefits, specialty care, and medical plans.
Why Could CI Be a Winner?
- Annual revenue growth of 18.7% over the last two years was superb and indicates its market share increased during this cycle
- Enormous revenue base of $262 billion gives it leverage over plan holders and advantageous reimbursement terms with healthcare providers
- Earnings per share have outperformed the peer group average over the last five years, increasing by 7.7% annually
Cigna is trading at $302.80 per share, or 9.5x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Hims & Hers Health (HIMS)
Market Cap: $12.54 billion
Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE: HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.
Why Should HIMS Be on Your Watchlist?
- Customer trends over the past two years show it’s maintaining a steady flow of new contracts that can potentially increase in value over time
- Free cash flow margin increased by 14.5 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Historical investments are beginning to pay off as its returns on capital are growing
Hims & Hers Health’s stock price of $54.97 implies a valuation ratio of 45.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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