How to Find the Best Healthcare Stocks to Buy

The best healthcare stocks offer investors a defensive hedge in an uncertain market. Here's how to find them.

stethoscope next to red heart
(Image credit: Getty Images)

Why should investors care about finding the best healthcare stocks? Well, the U.S. population is rapidly aging. Every day, more than 10,000 people turn 65 in the U.S., according to the Department of Health and Human Services. The percentage of Americans who are 65 and over grew nearly five times faster than the total population from 1920 to 2020, the latest U.S. census revealed.

Seniors also are living longer – and will increasingly need medical services. Healthcare spending already accounts for nearly a fifth of gross domestic product (GDP), or $4.3 trillion as of 2021, reported the Centers for Medicare and Medicaid Services.

Moreover, people will need healthcare no matter the state of the economy. That is why healthcare stocks could be a good investment for the long run as medical care is constantly in demand whether in boom times or bust. 

But which stocks should you buy? 

Deborah Yao
Contributing Writer, Kiplinger.com

Deborah Yao is an award-winning journalist, editor, and personal finance columnist who has held editorial roles at Kiplinger, The Wharton School, Amazon, The Associated Press, S&P Global (SNL Kagan) and MarketWatch. She specializes in writing and editing articles on finance and technology, with particular expertise in the areas of stock analysis, monetary policy, fintech, blockchain, macroeconomics, financial planning, taxes, among others. She has been published in The New York Times, USA Today, CBS News, ABC News, Wharton Magazine, and many other news outlets.