Best Stocks: Three healthcare names to ponder including a biotech back to levels not seen in a decade

CNBC

4 hours ago

(This is The Best Stocks in the Market , brought to you by Josh Brown and Sean Russo of Ritholtz Wealth Management.) Josh here — The healthcare sector has entered the chat. There are 12 healthcare names now on our Best Stocks list as of the end of last week. I'll show you a few of these set-ups below and then Sean's going to share some fundamentals for these healthcare firms. Sector Leaderboard As of 6/9/2025 morning, there are 114 names on The Best Stocks in the Market list Top Sector Ranking: Top Industries: Top 5 Best Stocks by Relative Strength: Sector Spotlight: Healthcare Josh — Alnylam Pharma (ALNY) just broke out above prior resistance at $300. There was company-specific news about new indications for one of their most important drugs that led to multiple price target raises on The Street. Alnylam is named for Alnilam, the brightest star in the Belt of Orion constellation, which ancient mariners used for navigation. The founders of the company believed their trailblazing work in the field of RNA interference (RNAi) would chart a brand new course of drug discovery and development by which the next generation of scientists would be guided. So far, so good as ALNY grew revenue to $2.25 billion in revenue last year and the company's market cap swelled to a respectable $40 billion. Wall Street's median price target is ten percent higher than today's price while the most bullish analyst, H.C. Wainwright, just published a target of $500 this past week. In Q1 2025, revenue surged by over 28% year-over-year to approximately $594 million, driven largely by the strength of the TTR franchise. Looking ahead, analysts project revenue growth of 24–33% through 2025–2026, supported by improving EPS and an expected annual revenue of $2.9 billion. The company also maintains a strong balance sheet, with around $223 million in free cash flow, a quick ratio of approximately 2.7×, and increasing support from major institutional investors who are adding to their positions. (data via Reuters) Sean — AMVUTTRA (vutrisiran) was recently FDA‑approved for cardiomyopathy, expanding its market from neuropathy, which is a major catalyst for the stock — it significantly expands its addressable market beyond its original use for polyneuropathy. This approval allows Alnylam to target patients with transthyretin amyloid cardiomyopathy (ATTR-CM), a much larger population than those with ATTR polyneuropathy. The drug's unique RNA interference mechanism and dosing schedule (quarterly or biannual injections) give it a competitive edge over existing therapies like Pfizer's Vyndaqel. This dual-indication approval not only boosts Alnylam's revenue potential but also strengthens its path toward profitability, making AMVUTTRA a key growth driver for the company and a pivotal reason for recent momentum. Josh — Allow for short-term consolidation in the $300 area, await the next catalyst. 50-day crossing over 200-day important signal that a new uptrend could be forming. Cardinal Health Josh — All three major Pharmaceutical Wholesalers made the list - McKesson (MCK) , Cencora (COR) and Cardinal Health (CAH) , only Cardinal looks good technically right now: CAH held its 50-day on a weekly closing basis during the April bloodbath, I'd use that area as a stop and update it each week. If the uptrend breaks, there's no reason to be long. Sean — CAH is a $37 billion wholesaler, sourcing and distributing branded, generic, and specialty pharmaceutical products to pharmacies, hospitals, and healthcare providers. All three names on our list, Cardinal, Cencora, and McKesson, hold well over 90% of the US pharmaceutical wholesale industry. CAH trades at an 18x forward PE and a 15x P/FCF - this thing is generating cash for investors. It has a 1.3% dividend yield and is growing earnings 8% this year, and is expected to grow its earnings 12% next year. Gilead Sciences Josh — Gilead (GILD) , as you can see in the chart above, is not done going up. This name has been on the list for most of the year so far. At the market lows this spring, it never violated its upward-sloping 200-day moving average — didn't even pay it a visit. And just for fun, below is the "forever" chart back to the company's IPO. I am a believer that price has memory, but I'm not sure there are still a lot of shareholders hanging around here from the last time it traded near the $120 level a decade ago. That said, I wouldn't be surprised to see a battle at that old high as new shareholders buy from sellers who are just thrilled to be getting out break-even. That's what makes a market. Sean — Gilead Sciences (GILD) has been on a run. Its experimental HIV prevention shot, lenacapavir, showed near-complete effectiveness in trials and is expected to generate $2–4 billion in peak annual sales—potentially transforming the HIV prevention market. The company has also posted solid financial results, with 2024 revenue and earnings rising due to strong performance in its HIV, liver disease, and oncology franchises. Analysts have raised price targets across the board, reflecting increased confidence in the company's pipeline and execution. GILD has a meaningful run rate of free cash flow (~$9.6B) and a growing pipeline of drugs for the future. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. INVESTING INVOLVES RISK. EXAMPLES OF ANALYSIS CONTAINED IN THIS ARTICLE ARE ONLY EXAMPLES. THE VIEWS AND OPINIONS EXPRESSED ARE THOSE OF THE CONTRIBUTORS AND DO NOT NECESSARILY REFLECT THE OFFICIAL POLICY OR POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC. JOSH BROWN IS THE CEO OF RITHOLTZ WEALTH MANAGEMENT AND MAY MAINTAIN A SECURITY POSITION IN THE SECURITIES DISCUSSED. ASSUMPTIONS MADE WITHIN THE ANALYSIS ARE NOT REFLECTIVE OF THE POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC" TO THE END OF OR OUR DISCLOSURE. Click here for the full disclaimer.