Best Healthcare Stocks this January 2026

Johnson & Johnson stands out as a top-rated healthcare giant with impressive one-year gains of 45.17%. The company boasts a solid dividend yield of 2.54%, making it an attractive option for investors seeking reliable income from financially healthy companies. Analysts have a consensus rating of "Moderate Buy," with a median price target of $211.00, reflecting confidence in its stable growth trajectory.

Johnson & Johnson has a consensus rating of 'Moderate Buy' from 28 Wall Street analysts, with 15 recommending a buy and 4 a strong buy.

Johnson & Johnson's revenue is projected to grow about 5% annually through 2027, with stable operating margins around 33% and shares trading at approximately 15 times forward earnings.

Molina Healthcare (MOH) has shown recovery momentum with a 19% increase in the past month, yet its one-year return stands at a concerning -38.25%. Analysts maintain a Hold consensus rating for the stock, with a median 12-month price target of $170.00, suggesting potential upside. Despite facing challenges like rising medical costs, Molina's disciplined operations and profitability in its Medicaid segment indicate resilience.

Molina Healthcare (MOH) has a Hold consensus rating from 12 analysts as of January 9, 2026, indicating a neutral stance on the stock.

MOH has declined 46% year-to-date due to rising medical costs and earnings guidance cuts, though its Medicaid segment remains profitable as management exits unprofitable markets and raises premiums.

Molina Healthcare's stock reached a 52-week high of $359.97 and a low of $133.40, with an average price of $237.51 over the past year.

The average 12-month price target for MOH is $200.80, with a forecasted upside of 9.4% from the current price of $183.55.

CVS Health Corp has emerged as a top performer in the healthcare sector, boasting an impressive one-year return of 55.98% and a dividend yield of 3.31%. Analysts remain optimistic, with a median 12-month price target of $93, reflecting strong investor confidence driven by the company’s strategic initiatives. Despite facing challenges in its Medicare Advantage segment, CVS has successfully increased revenue and is well-positioned for continued growth.

CVS has restored investor confidence, with shares up 70.5% this year, and expects strong earnings growth in 2026.

CVS stock is currently priced at $80.42, reflecting a 0.97% increase in the past 24 hours.

CVS faces challenges due to rising expenses in its Medicare Advantage business, which have led to shrinking margins despite increased revenue.

CVS offers an attractive valuation and a dividend yield of 3.4%, making it a strong candidate for investors seeking healthcare stocks.

Cardinal Health Inc (CAH) has demonstrated remarkable growth, boasting a one-year return of 67.57% and an impressive five-year return of 261.71%. This stock is currently rated with a Zacks Rank #2 (Buy) and enjoys a strong Value grade of A, making it an attractive option for investors looking for solid performance from financially healthy companies. Analysts are optimistic about its future, projecting annual earnings growth of 10.2% and revenue growth of 8.1%, with a median 12-month price target set at $220.00.

CAH has a Zacks Rank of #2 (Buy) and a Value grade of A, with a current P/E ratio of 15.48, which is below the industry average of 17.80.

CAH's all-time high closing price was $213.20 on November 25, 2025, while its 52-week high is $214.93 and its low is $119.25.

CAH is expected to grow earnings by 10.2% and revenue by 8.1% annually, with EPS growth projected at 12.4% per year.

CAH holds a Zacks Rank of #2 (Buy) and a Growth Style Score of A, with an expected year-over-year earnings growth of 19.7% for the current fiscal year.

Elevance Health (ELV) has demonstrated strong momentum, recently hitting a six-month high and surpassing its 200-day moving average, making it a top-rated choice for investors seeking growth potential in 2026. Despite a 1-year return of -5.43%, the stock's 5-year return of 12% and a dividend yield of 2.07% highlight its appeal for value investors. Analysts have a positive outlook, with a median 12-month price target of $402, suggesting room for growth.

Elevance Health, Inc. appears undervalued with a Value Score of A, making it a strong candidate for value investors due to its solid financial health and growth potential.

Elevance Health's stock has increased by 10.91% in the past month and 3.51% year-to-date, though it has a slightly negative one-year total shareholder return of 2.47%, indicating recent momentum.

Analysts have a consensus rating of 'Buy' for Elevance Health, with an average price target of $388.69, suggesting a potential 4.66% increase in the stock price over the next year.

ELV's weekly volatility has remained stable at 4% over the past year.

Centene Corp (CNC) recently closed at a six-month high, demonstrating a 38.4% increase over that period. Despite this upward trend, the stock has faced challenges, with a one-year return of -27.17% and a five-year return of -31.92%. Analysts maintain a median price target of $45.00, with a range between $38.00 and $59.00, indicating that investors may find value in this healthcare sector stock amidst its potential for recovery.

CNC stock is considered a compelling buy, as the healthcare sector has historically outperformed the S&P, making it an opportune time to invest.

Analysts have set a twelve-month average price target of $40.38 for Centene, with a potential downside of -14.17% from its current price of $47.04.

CNC stock declined due to the company reducing its earnings guidance, primarily because of increased medical expenses in its Affordable Care Act plans.

Centene is currently undervalued, with an intrinsic value of $134.64 compared to its market price of $41.78, indicating a 69% undervaluation.

Eli Lilly (LLY) stands out as a top-rated pharmaceutical company, boasting a remarkable one-year return of 35.55% and an impressive five-year return of 504.59%. With a focus on diabetes and obesity treatments, its innovative product range has driven substantial growth, making it an attractive option for investors seeking both value and growth. Analysts have given the stock a median 12-month price target of $1,191, indicating strong confidence in its future performance.

LLY has a mixed signal; while the short-term moving average indicates a sell, the long-term average suggests a buy, resulting in a generally positive forecast.

LLY's strong performance is driven by its diverse product portfolio and significant growth potential in the weight loss market.

LLY has a five-year target price of $1,968 and is rated a 'Strong Buy' due to its favorable combination of value and growth.

LLY's projected EPS growth of 41.3% this year significantly outpaces the industry average of 2.6%, indicating a strong growth outlook.