1.HLS Therapeutics
HLS.TO (TSX)
HLS Therapeutics emphasizes the development of cardiovascular and central nervous system drugs, recently experiencing a notable 14.08% return over the past year. A significant driver for future growth is the anticipated Health Canada approval of Nilemdo, a treatment aimed at lowering LDL cholesterol, expected in November 2025, with a launch planned for Q2 2026. Investors can also benefit from a dividend yield of 3.42%, although the stock has seen a long-term decline of 72.35% over five years, reflecting some volatility in its performance.
Pros:
- Focus on cardiovascular and CNS drugs
- Recent approval of Nilemdo as a catalyst
Cons:
- Significant decline in stock value over the years
- Market performance is inconsistent
2.Knight Therapeutics
GUD.TO (TSX)
Knight Therapeutics, a specialty pharmaceutical firm based in Montreal, focuses on acquiring and in-licensing medicines for markets in Canada and Latin America. Despite a modest 1.23% one-year return, the company's commitment to strategic growth in emerging markets positions it as a noteworthy option for investors. Recently, Raymond James maintained an "Outperform" rating, reflecting confidence in its operational strategy and market potential.
Pros:
- 14.29% year-on-year gain
- Focus on innovative pharmaceutical products
Cons:
- Market performance is inconsistent
- Limited international presence
3.Canopy Growth Corporation
WEED.TO (TSX)
Canopy Growth Corporation, a leading player in Canada's cannabis market, is seeing a turnaround with improving revenue trends and narrowing losses, despite a challenging performance history reflected in its 1-year return of -46.49% and a staggering 5-year return of -99.67%. Analysts have mixed views, with Benchmark rating it as a Hold while Piper Sandler maintains an Underweight position. For investors, the stock's recovery potential hinges on U.S. cannabis decriminalization and the company's need to enhance profit margins to compete effectively.
Pros:
- Improving revenue trends
- Narrowing losses
Cons:
- Significant decline in stock value over the years
- High market volatility
4.Satellos Bioscience
MSCL.TO (TSX)
Satellos Bioscience is a Canadian pharmaceutical firm dedicated to developing therapies for muscle disorders, particularly Duchenne muscular dystrophy. With a solid one-year return of 55.81%, the stock is receiving buy signals from both short and long-term Moving Averages, indicating positive growth prospects. However, investors should be cautious, as the company has a market capitalization of $94 million and reported a significant cash burn last year, raising potential risks.
Pros:
- Focus on muscle disorders
- Positive year-on-year gain
Cons:
- High volatility
- Potential dilution risk
5.iShares Global Healthcare Index ETF (CAD-Hedged)
XHC.TO (TSX)
The iShares Global Healthcare Index ETF (CAD-Hedged) offers a diversified exposure to the healthcare sector by replicating the S&P Global 1200 Health Care Canadian Dollar Hedged Index. With a solid 1.87% dividend yield and impressive 5-year returns of 21.51%, this ETF presents an attractive opportunity for investors seeking reliable growth from financially healthy companies. Its commitment to consistent payouts makes it a noteworthy option within the healthcare investment landscape.
Pros:
- Diversified healthcare exposure
- Strong historical performance
Cons:
- Market fluctuations may affect returns
- Dependence on underlying index performance
Final Words
As you consider the best healthcare stocks in Canada this February 2026, take time to compare the options available and conduct thorough research on each company. This approach will empower you to make informed investment decisions that align with your financial goals.
Frequently Asked Questions
As of now, Canopy Growth Corporation has shown a 3-month return of -13.51%, a 6-month return of 2.56%, and a year-to-date return of -2.44%. Over the last year, the stock has decreased by 46.49%.
Canopy Growth Corporation is recognized for its improving revenue trends and narrowing losses. However, potential investors should consider its recent performance and market conditions before making a decision.
Canopy Growth Corporation produces a variety of cannabis and hemp-based products, including dried cannabis flower, extracts, beverages, gummies, and vapes. Their products are marketed under various brands such as Tweed, 7ACRES, and Spectrum Therapeutics.
Investing in healthcare stocks can involve various risks, including regulatory changes, market volatility, and competition. Specifically, for cannabis stocks like Canopy Growth, legal and market acceptance fluctuations can significantly impact performance.
Canopy Growth Corporation currently has a market cap of $290.79 million. When comparing to other healthcare stocks, it's essential to consider both market cap and growth potential to assess overall investment attractiveness.
When comparing healthcare stocks, consider factors like market capitalization, recent performance trends, dividend yields, and the company’s ability to innovate and adapt to market changes. Additionally, examining analyst ratings can provide insights into future performance.
