1 Healthcare Stock to Consider Right Now and 2 We Turn Down

1 Healthcare Stock to Consider Right Now and 2 We Turn Down

Radek Strnad

Tue, February 24, 2026 at 1:44 PM GMT+9 4 min read

In this article:

•                                       StockStory Top Pick 
  

  GE

  -1.23%

 GEHC  

 -0.44%  

 

 

 IQV  

 -2.00%  

 

 

 ENSG  

 +1.68%  

 

 

 ^GSPC  

 -1.04%  

From novel pharmaceuticals to telemedicine, most healthcare companies are on a mission to drive better patient outcomes. Those leading the charge have not only realized strong financial performance but also propelled the broader industry’s returns as healthcare stocks have gained 10.6% over the past six months while the S&P 500 was up 7.3%.

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 is one resilient healthcare stock at the top of our wish list and two we’re passing on.

Two Healthcare Stocks to Sell:

GE HealthCare (GEHC)

Market Cap: $38.22 billion

Spun off from industrial giant General Electric in 2023 after over a century as its healthcare division, GE HealthCare (NASDAQ:GEHC) provides medical imaging equipment, patient monitoring systems, diagnostic pharmaceuticals, and AI-enabled healthcare solutions to hospitals and clinics worldwide.

Why Are We Cautious About GEHC?

The company has faced growth challenges as its 2.7% annual revenue increases over the last two years fell short of other healthcare companies

Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth

GE HealthCare is trading at $83.76 per share, or 16.6x forward P/E. To fully understand why you should be careful with GEHC, check out our full research report (it’s free).

IQVIA (IQV)

Market Cap: $27.54 billion

Created from the 2016 merger of Quintiles (a clinical research organization) and IMS Health (a healthcare data specialist), IQVIA (NYSE:IQV) provides clinical research services, data analytics, and technology solutions to help pharmaceutical companies develop and market medications more effectively.

Why Are We Hesitant About IQV?

The company has faced growth challenges as its 2.8% annual revenue increases over the last two years fell short of other healthcare companies

Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track

Free cash flow margin dropped by 3.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up

IQVIA’s stock price of $162.21 implies a valuation ratio of 13x forward P/E. Read our free research report to see why you should think twice about including IQV in your portfolio, it’s free.

One Healthcare Stock to Watch:

The Ensign Group (ENSG)

Market Cap: $12.35 billion

Story Continues  

Founded in 1999 and named after a naval term for a flag-bearing ship, The Ensign Group (NASDAQ:ENSG) operates skilled nursing facilities, senior living communities, and rehabilitation services across 15 states, primarily serving high-acuity patients recovering from various medical conditions.

Why Is ENSG Interesting?

Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share

Earnings growth has trumped its peers over the last five years as its EPS has compounded at 13.8% annually

ROIC punches in at 13.6%, illustrating management’s expertise in identifying profitable investments

At $214.22 per share, The Ensign Group trades at 28x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.

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