Best Healthcare Stocks to Buy in 2026

Biogen (NASDAQ: BIIB) and Novo Nordisk (NYSE: NVO) represent different opportunities within the healthcare sector: One is a value-oriented play focusing on specialized neurology, while the other is a high-growth leader in the metabolic health revolution. However, both pharmaceutical companies stand to benefit from new indications for approved therapies that haven't fully been priced into their shares.

Biogen is awaiting approval of Leqembi in a subcutaneous formulation to treat Alzheimer's patients; the drug is already approved in intravenous (IV) formulations. Novo Nordisk is seeing an uptick in Wegovy sales because its weight-loss therapy is now available in pill form. Biogen's shares are trading up more than 13.5% this year, while Novo Nordisk's are down almost 8%.

Here are three reasons why I like each stock.

Image source: Getty Images.

Biogen is a great turnaround play

Massachusetts-based Biogen specializes in treating neurological conditions, including a stable of drugs to treat multiple sclerosis (MS): Tecfidera, Vumerity, Avonex, Plegridy, and Tysabri. Biogen has been expanding its portfolio, and now offers Leqembi to treat early Alzheimer's disease; Spinraza for the treatment of spinal muscular atrophy; Skyclarys for the treatment of Friedreich's ataxia, a rare neurodegenerative disorder; and Qalsody for the treatment of amyotrophic lateral sclerosis (ALS), commonly known as Lou Gehrig's disease.

The company recently got bad news when the Food and Drug Administration (FDA) extended the review period for the supplemental Biologics License Application (sBLA) for the once-weekly subcutaneous injection of Leqembi. The setback is minor, as the therapy has approval from more than 50 regulatory agencies for IV dosing. A subcutaneous autoinjector offers significant market expansion potential due to its ease of use.

Despite declining revenue in its legacy MS portfolio, Biogen remains highly profitable. In Q1, Biogen revenue rose 2% year over year to $2.5 billion, while earnings per share (EPS) jumped 31% to $2.15. Much of the gain came from a 74% year-over-year rise in Leqembi sales to $168 million. Free cash flow was $594 million, up 167% over the first quarter of 2025.

Acquisitions broadened Biogen's pipeline

Through acquisitions such as its $7.3 billion purchase in 2023 of Reata Pharmaceuticals, Biogen has added promising rare-disease treatments such as Skyclarys, which brought in $150 million in first-quarter sales (up 22% year over year).

In March, Biogen said it was purchasing Apellis Pharmaceuticals for $5.6 billion, bringing in two medicines. Empaveli is approved by the FDA in three indications, including two rare kidney diseases; Syfovre is approved to treat a rare eye condition called geographic atrophy. The therapies generated $689 million in 2025 sales, and Biogen said that figure is expected to grow by percentages in the low to middle teens through 2028.

This diversification helps mitigate the risks posed by the company's older blockbuster drugs as they face generic competition.

Biogen stock trades at just under 22 times earnings, even after 2026's share price gains.

Novo Nordisk is a growth machine

Novo Nordisk, based in Denmark, is a powerhouse in the markets for diabetes and obesity treatments, driven by its GLP-1 agonists, including Ozempic for diabetes and Wegovy for obesity. Demand for these drugs is so high that the company expanded manufacturing capacity to meet it. Over the past three years, annual revenue has risen by more than 108%.

While its share price is down due to strong GLP-1 competition from Eli Lilly's Zepbound, Novo Nordisk continues to post record revenue. The company has managed to stay a few steps ahead of Lilly, getting FDA approval for the injectable form of Wegovy in June 2021 -- well before Lilly's own injectable Zepbound was approved in November 2023. This year, Wegovy was approved in pill form in January, followed by Lilly's GLP-1 pill, Foundayo, in April.

In the first quarter, Novo Nordisk reported revenue of 96.8 billion Danish krone (roughly $15.3 billion), up 24% year over year. Operating profit was up 54% to 59.6 billion DKK (roughly $9.4 billion).

Novo Nordisk is broadening its portfolio

Novo Nordisk is using the added cash from its GLP-1 agonist sales to build a foundation of diverse metabolic treatments. In October 2025, Novo Nordisk completed the $4.7 billion acquisition of Akero Therapeutics. This brought in efruxifermin, a late-stage candidate that has shown promise in reversing liver scarring.

The company's GLP-1 therapies are receiving label expansions to reduce the risk of major cardiovascular events and to treat chronic kidney disease. This clinical versatility makes these drugs a must-have for insurance providers and healthcare systems, strengthening Novo Nordisk's long-term competitive moat.

Novo Nordisk raised its semiannual dividend by 37% this year to $1.04 per American depositary receipt (ADR), yielding roughly 3.9% at its current share price. The company has increased its dividend for six consecutive years.

Not an easy choice

Biogen is well-priced and appears to be in the early stages of a turnaround. The FDA's delay in the sBLA for Leqembi as a subcutaneous injection is unlikely to affect the drug's long-term sales potential: Alzheimer's disease is the most common form of dementia, clinically diagnosed in 1-in-9 people in the U.S. age 65 or older.

Novo Nordisk has a stronger growth profile and trades at just under 11 times earnings. Its GLP-1 funds are helping it develop other therapies or buy them, and its above-average dividend makes it a great long-term choice. Of the two stocks, Novo Nordisk is probably the better buy right now.

James Halley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eli Lilly. The Motley Fool recommends Biogen and Novo Nordisk. The Motley Fool has a disclosure policy.