Top Health Care Stocks to Monitor in May 2025

Discover the top-performing health care stocks from the last month that are capturing investor attention.

The health care industry is vast and diverse, encompassing companies that produce medical devices, pharmaceuticals, provide medical services, and even offer insurance solutions. This sector ranges from innovative startups still developing their first products to established legacy providers and everything in between. With such variety, investors have numerous options to consider when focusing on health care. However, due to the sector's complexity, it’s crucial for investors to thoroughly understand the dynamics of health care companies before committing capital.

Key Insights

• Leading health care stocks for May 2025 by 30-day returns include Nutex Health Inc. (NUTX), Summit Therapeutics Inc. (SMMT), and Zhengye Biotechnology Holding Ltd. (ZYBT).
• The top health care performers in the past month have generated returns exceeding 18.7%.
• Factors such as an aging population and rising medical demands are driving substantial growth within the health care sector.

Below, we analyze several standout health care stocks to watch in May 2025, selected based on their highest 30-day percentage gains. All data is accurate as of April 24, 2025.

Understanding the Health Care Sector

The health care industry was significantly impacted by the COVID-19 pandemic and is still navigating recovery challenges. Ongoing labor shortages and inflationary pressures continue to affect operations. The sector has seen shifts such as fewer in-person medical visits, evolving insurance landscapes, and increased demand for innovative products. These changes have pushed established companies to adapt and opened doors for emerging firms to establish their presence. Looking ahead, the sector will contend with expanding Medicaid and Medicare populations and capitalize on advancements like artificial intelligence.

A key trend gaining momentum among investors is the rise of GLP-1 agonists—medications primarily used to treat Type 2 diabetes and aid weight loss. With nearly one billion people worldwide affected by obesity, the market potential for these drugs is enormous. Leading companies in this space include Novo Nordisk A/S (NVO) and Eli Lilly and Co. (LLY), although competition remains fierce.

Criteria for Selecting Top Health Care Stocks

Our selection process focused on companies listed on the Nasdaq or New York Stock Exchange. To ensure we highlighted established players, we excluded companies with share prices under $5, daily trading volumes below 100,000 shares, and market capitalizations under $300 million. From this filtered group, we ranked stocks by their highest 30-day percentage returns.

It’s noteworthy that most companies in our list lack a price-to-earnings (P/E) ratio, often because they are either not yet profitable or have no earnings in the relevant periods. This is common for clinical-stage pharmaceutical firms that are pre-revenue or in the development phase until a major product launch.

Pros and Cons of Investing in Health Care Stocks

In 2023, national health care spending hit $4.9 trillion, underscoring the sector’s vast scale. One major advantage for investors is the consistent demand for health services and products, driven by ongoing medical needs and an aging population. This demand is projected to increase, with expenditures expected to reach $6.8 trillion by 2030.

Health care companies are motivated to innovate, developing new technologies to meet growing needs and improve cost efficiency. This innovation can create opportunities for both short-term gains and long-term growth.

Individual companies often experience significant stock surges when launching breakthrough products, such as widely applicable medical devices or blockbuster drugs, or when positive clinical trial results emerge.

However, investing in health care carries risks. The sector’s complexity can make it challenging to evaluate companies and their products accurately. Additionally, regulatory changes can introduce volatility. Investors should be mindful that while the potential for rewarding returns exists, stock performance can be unpredictable.

Final Thoughts

The health care sector offers immense opportunities but requires careful research and understanding. Our top picks focus on pharmaceutical companies that have demonstrated strong monthly returns, often linked to successful product developments. Yet, these stocks can be volatile, especially if anticipated products fail to meet expectations.

The views and analyses presented are for informational purposes only. Please consult professional financial advice before making investment decisions. As of this article’s publication, the author holds no positions in the mentioned securities.

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