2 Quality Healthcare Stocks That Could Build a Strong Foundation for Beginner Investors

Global populations are aging, a reality that is leading to increased demand for healthcare services, chronic disease management, and age-related treatments. This demographic shift is a major driving force behind the long-term growth prospects of the healthcare sector, and that also presents tremendous opportunities for buy-and-hold investors.

If you are a beginner investor and want to start or grow your investments in the healthcare space, here are two quality names to consider the next time you go shopping for stocks.

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1. Eli Lilly

Eli Lilly (NYSE: LLY) could be an attractive option for a beginner investor thanks to its strong track record of profitable financial growth, leading position in key drug markets, and a robust product pipeline. The healthcare stock has become the dominant player in the weight loss and diabetes markets with blockbuster drugs like Zepbound (for obesity) and Mounjaro (for type 2 diabetes). These products are capturing significant market share and driving massive revenue growth, with some analysts forecasting that peak annual sales for tirzepatide, the key active ingredient in both drugs, will exceed $60 billion by 2030.

Eli Lilly also has a diverse portfolio of drugs and a healthy pipeline of new treatments in areas like oncology, immunology, and brain health. The company is actively developing next-generation treatments, including an oral, once-daily GLP-1 pill called orforglipron. This pill format could appeal to a wider patient base who prefer not to use injections, and potentially expand the addressable market for Eli Lilly even further. Management highlighted positive results from several concurrent phase 3 trials for orforglipron in Eli Lilly's Q3 earnings, and plans remain on track for global regulatory submissions by the end of the year.

Eli Lilly reported exceptional results for the third quarter of 2025 and significantly surpassed analyst expectations for both earnings and revenue. A lot of that growth was driven by robust demand for its incretin drugs Mounjaro and Zepbound. Eli Lilly's Q3 2025 revenue popped by 54% and net income surging by 475% compared to the same quarter one year ago.

Mounjaro generated $6.5 billion in revenue (up 109%), while Zepbound contributed $3.6 billion (up 185%). Combined, these two products have captured approximately two-thirds of all new U.S. incretin prescriptions. The company also announced plans to build two new U.S. manufacturing facilities and expand an existing site in Puerto Rico. The company also received FDA approval for Inluriyo for advanced breast cancer in Q3.

As icing on the cake, Eli Lilly has paid a dividend in some form since the late 1800s, so income investors can find plenty to like about the stock, too. This history of consistent payments, combined with its strong financial position and growth opportunities, could make the stock an appealing choice for investors of all experience levels, including investors who are just starting to build out their portfolio.

2. Hims & Hers Health

Hims & Hers Health (NYSE: HIMS) is known for its subscription-based telehealth platform, which offers personalized treatments and products for various health concerns. The vast majority of its revenue comes from online sales, though it also generates a small portion from wholesale partnerships. Over 90% of the company's revenue is recurring from subscriptions for ongoing care and medications for chronic conditions like hair loss, sexual health, and mental health.

The company has expanded its offerings into multiple specialties, including dermatology, mental health, and weight loss to attract new customers and increase spending from existing ones. In 2024, Hims & Hers added compounded semaglutide (the active ingredient in Ozempic and Wegovy) to its weight loss program. A shortage of these drugs at the time temporarily allowed the company to legally offer more affordable alternatives not approved by the U.S. Food and Drug Administration.

The company invested in its in-house compounding capabilities and purchased a new manufacturing facility to support its personalized wellness offerings. Then, the FDA declared the semaglutide injection shortage over in February 2025. Hims & Hers is now focusing on personalized GLP-1 formulations (e.g., specific dosages or combinations with other ingredients like B12), which can still be legal under compounding laws if they are different enough from the branded product. However, this approach is generally considered a legal gray area and has drawn regulatory scrutiny from the FDA.

Still, there are plenty of growth tailwinds for Hims & Hers that investors can benefit from regardless of what happens with its GLP-1 ambitions. Recent and planned launches include high-demand areas like hormone health (menopause and testosterone therapy), and longevity/preventive care that can significantly broaden its addressable market and attract new subscribers. The broader healthcare industry is shifting toward accessible, convenient, digital-first solutions.

Hims & Hers' direct-to-consumer telehealth platform is well-positioned to capture this demand, especially among millennials and Gen Z consumers who prioritize wellness and digital experiences. The company's revenue jumped 90% to $1.1 billion in the first half of 2025 compared to the same stretch of time in 2024. And, its net income almost quadrupled on a year-over-year basis to about $92 million in the first six months of 2025. There's a lot for long-term investors, including beginner investors, to like about Hims & Hers and where the business could go from here.

Rachel Warren has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hims & Hers Health. The Motley Fool has a disclosure policy.