2 Healthcare Stocks for Long-Term Investors and 1 We Brush Off

Adam Hejl Fri, June 26, 2026 at 10:48 AM EDT 4 min read **

• ^GSPC
• BMRN
• BSX
• ICUI

2 Healthcare Stocks for Long-Term Investors and 1 We Brush Off Healthcare companies are pushing the status quo by innovating in areas like drug development and digital health. Those leading the charge have not only realized strong financial performance but also propelled the broader industry's returns as healthcare stocks have gained 9.5% over the past six months while the S&P 500 was up 6.2%.

Regardless of these results, investors must exercise caution as many businesses in this space are subject to heavy regulation that can influence their earnings potential. On that note, here are two healthcare stocks we think can generate sustainable market-beating returns and one we're swiping left on.

One Healthcare Stock to Sell:

ICU Medical (ICUI)

Market Cap: $3.57 billion

Founded in 1984 and named for its initial focus on intensive care units, ICU Medical (NASDAQ:ICUI) develops and manufactures medical products for infusion therapy, vascular access, and vital care applications used in hospitals and other healthcare settings.

Why Are We Hesitant About ICUI?**

• Sales tumbled by 1.6% annually over the last two years, showing market trends are working against it during this cycle

• Performance over the past five years shows its incremental sales were less profitable, as its 2.9% annual earnings per share growth trailed its revenue gains

• ROIC of 0.9% reflects management's challenges in identifying attractive investment opportunities

At $148.65 per share, ICU Medical trades at 17.2x forward P/E. If you're considering ICUI for your portfolio, see our FREE research report to learn more.

Two Healthcare Stocks to Watch:

BioMarin Pharmaceutical (BMRN)

Market Cap: $10.74 billion

Pioneering treatments for conditions that often had no previous therapeutic options, BioMarin Pharmaceutical (NASDAQ:BMRN) develops and commercializes therapies that address the root causes of rare genetic disorders, particularly those affecting children.

Why Are We Positive on BMRN?

• Offerings and unique value proposition resonate with customers, as seen in its above-market 14.5% annual sales growth over the last two years

• Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 28.4%

• Free cash flow margin jumped by 5.6 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

BioMarin Pharmaceutical is trading at $56.22 per share, or 10.2x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it's free.

** Story Continues

Boston Scientific (BSX)

Market Cap: $70.11 billion

Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE:BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.

Why Does BSX Stand Out?**

• Core business can prosper without any help from acquisitions as its organic revenue growth averaged 15.7% over the past two years

• Additional sales over the last five years increased its profitability as the 24.2% annual growth in its earnings per share outpaced its revenue

• Free cash flow margin increased by 9.1 percentage points over the last five years, giving the company more capital to invest or return to shareholders

Boston Scientific's stock price of $44.24 implies a valuation ratio of 12.9x forward P/E. Is now a good time to buy? Find out in our full research report, it's free.

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