Healthcare companies are pushing the status quo by innovating in areas like drug development and digital health. But speed bumps such as inventory destockings have persisted in the wake of COVID-19, limiting growth. This has capped returns as the industry’s six-month gain of 8.6% has lagged the S&P 500’s 22.9% climb.

The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. On that note, here is one resilient healthcare stock at the top of our wish list and two we’re swiping left on.

Two Healthcare Stocks to Sell:

Biogen (BIIB)

Market Cap: $21.21 billion

Founded in 1978 and pioneering treatments for some of medicine's most complex challenges, Biogen (NASDAQ: BIIB) develops and markets therapies for neurological conditions, including multiple sclerosis, Alzheimer's disease, spinal muscular atrophy, and rare diseases.

Why Does BIIB Give Us Pause?

1. Annual sales declines of 6.5% for the past five years show its products and services struggled to connect with the market during this cycle
2. Estimated sales decline of 6.8% for the next 12 months implies a challenging demand environment
3. Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 15.7% annually, worse than its revenue

Biogen is trading at $145.05 per share, or 9.5x forward P/E. Read our free research report to see why you should think twice about including BIIB in your portfolio.

CVS Health (CVS)

Market Cap: $99.49 billion

With over 9,000 retail pharmacy locations serving as neighborhood health destinations across America, CVS Health (NYSE: CVS) operates retail pharmacies, provides pharmacy benefit management services, and offers health insurance through its Aetna subsidiary.

Why Are We Wary of CVS?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 6.8% over the last two years was below our standards for the healthcare sector
2. Earnings per share fell by 4.8% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
3. Free cash flow margin dropped by 2.9 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $77.77 per share, CVS Health trades at 11.8x forward P/E. Check out our free in-depth research report to learn more about why CVS doesn’t pass our bar.

One Healthcare Stock to Watch:

Molina Healthcare (MOH)

Market Cap: $10.53 billion

Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE: MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states.

Why Could MOH Be a Winner?

1. Annual revenue growth of 19.7% over the past five years was outstanding, reflecting market share gains this cycle
2. Large revenue base of $43.41 billion gives it power over healthcare providers and plan holders
3. Earnings per share grew by 11.1% annually over the last five years, comfortably beating the peer group average

Molina Healthcare’s stock price of $194.27 implies a valuation ratio of 10.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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