Health care stocks have been on the back foot in 2026, trailing the broader S&P 500. But if history is any guide, that underperformance may not last. The sector has a well-earned reputation as a defensive hiding place — Americans tend to keep filling prescriptions and showing up for procedures even when the economy cools. Add in the long-range tailwinds of artificial intelligence and an aging baby boomer population, and the investment case starts to look compelling. The Centers for Medicare and Medicaid Services sees U.S. health spending climbing 5.8% annually all the way through 2033.
Against that backdrop, analysts at CFRA recently published a list of 10 health care stocks to buy right now. We’ve narrowed that group down to five names that are tethered directly to two of the sector’s most powerful catalysts: the GLP-1 weight-loss drug revolution and the rise of AI across medicine.
No conversation about GLP-1s is complete without Eli Lilly. CFRA’s Sel Hardy argues the drugmaker is ideally placed to ride both surging demand for obesity and diabetes treatments and the secular aging trend. The international rollout of Mounjaro and Zepbound, combined with the commercial launch of recently approved Foundayo, are flagged as potential near-term catalysts for the stock. Hardy also points to a deep pipeline that keeps advancing. CFRA carries a buy rating and a $1,225 price target on shares, which finished April 27 at $868.27.
Amgen is betting that its obesity candidate MariTide can change the GLP-1 conversation. The drug is already in six late-stage studies, and mid-stage data suggest efficacy with quarterly dosing — a feature that could sharply differentiate it from weekly competitors. The company’s $28 billion acquisition of Horizon Therapeutics is already delivering, with three rare−disease assets feeding the top line. Hardy also flags early promise in Tezspire and Lumakras, plus a massive addressable market for Amjevita. CFRA rates the stock a buy with a $398 target; shares closed at $340.18.
If AI is going to reshape health care, robotic surgery will be one of its most visible arenas. Hardy highlights Intuitive Surgical’s industry-leading margins and wide competitive moat, noting that system placement trends point to rising adoption. Expansion into ambulatory surgery centers and cardiac procedures could add fresh momentum. With a management team known for execution and AI steadily creeping into surgical workflows, the long-term setup remains compelling. CFRA’s buy rating comes with a $590 price target against an April 27 close of $470.99.
Thermo Fisher is the picks-and-shovels play on AI-driven drug discovery — a dominant force in life sciences tools, lab equipment, and diagnostics. Hardy sees the stock as attractively valued right now. The company’s global manufacturing footprint and a disciplined mix of external acquisitions and internal R&D should allow it to outpace peers as researchers lean harder into precision testing and AI-accelerated development. CFRA targets $540 for the shares, which closed at $468.04 on April 27.
Abbott’s recent move to acquire Exact Sciences has turned it into a heavyweight in oncology diagnostics and cancer screening, a space where AI-assisted imaging and precision detection are rapidly gaining importance. The company’s diversified portfolio already includes the FreeStyle Libre continuous glucose monitor and Alinity diagnostic systems, both deeply integrated with leading insulin pump makers. Hardy is bullish on the financial profile, the growing dividend, and the breadth of the product mix. CFRA assigns a buy rating and a $125 price target; the stock ended April 27 at $92.80.
