After underperforming broader stocks over the past few years, will the healthcare sector finally bounce back and deliver above-average returns going forward? That’s hard to say. Either way, there are plenty of attractive healthcare stocks that investors should consider buying and holding for the next five years and beyond.
Here are two candidates: Intuitive surgeon (NASDAQ: ISRG) i Vertex Pharmaceuticals (NASDAQ: VRTX).
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Intuitive Surgical faced challenges last year. The high tariffs hurt its financial results, while it is seeing increased competition in the robotic-assisted surgery (RAS) market, a niche in which it is a leader. In addition, the company’s guidance for fiscal year 2026 was not as strong as the market wanted. However, even with potential near-term volatility, Intuitive Surgical’s long-term outlook is strong. It operates in an under-penetrated RAS market and develops some of the leading robotic surgery devices, including its famous Da Vinci system, which helps surgeons perform minimally invasive procedures.
Intuitive Surgical also benefits from a strong competitive advantage due to switching costs, as its devices are expensive enough that hospital systems are unwilling to replace them. It closed the fourth quarter with an installed base of 11,106, up 12% from the same period last year. And as that number increases, so will the volume of procedures, a major growth driver for the specialist in medical devices. Intuitive Surgical’s moat can help it stay ahead of the competition while giving it flexibility to deal with fees, for example by leveraging its strong pricing power.
So even with the challenges it faces, Intuitive Surgical’s stock is one of the best picks this month for buy-and-hold investors given its long-term outlook, despite its 13% fall over the trailing 12 months.
Vertex Pharmaceuticals has several catalysts on the horizon that could boost its stock price and help it build a strong foundation for the future. While the biotech has been very successful in its core therapeutic area—Vertex Pharmaceuticals markets the world’s only drugs that treat the underlying causes of cystic fibrosis (CF), the company is now expanding into new territories. Vertex plans to file regulatory filings for zimislecel, an investigational therapy for type 1 diabetes, this year.







