2 Top Healthcare Stocks to Buy in February

fool.com · Feb 26, 2026 · Collected from GDELT

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Patience should pay off with these two healthcare giants.Will the healthcare sector finally rebound in 2026, after underperforming broader equities in recent years? It's hard to know for sure. But rather than avoiding the entire industry because of recent history, it's worth looking at individual healthcare stocks with strong prospects and buying them right now. Two attractive candidates to consider are CVS Health (CVS +2.39%) and Vertex Pharmaceuticals (VRTX 0.60%). Image source: Getty Images. 1. CVS Health CVS Health bounced back in 2025. The company's share price soared by more than 70% on the back of improved financial results. In 2026, the company has the potential to maintain that momentum. CVS Health plans to trim its business this year, notably by scaling back its Medicare Advantage (MA) business, where it has been struggling to contain costs, leading to lower margins. CVS' health insurance division, Aetna, is also planning to exit the Obamacare (also known as the Affordable Care Act) marketplace this year. Today's Change(2.39%) $1.82Current Price$78.01 These initiatives signal the company's decision to focus more on long-term profitable growth rather than short-term revenue boosts. Will they have a significant impact on CVS' financial results in 2026? Probably not, but CVS Health is positioning itself to be a higher-margin, more profitable healthcare leader over the long run. Given the company's vast healthcare ecosystem, deep footprint across the U.S., and relationships with customers, CVS' ongoing efforts make its long-term outlook even more attractive. That's why the stock is a buy this month, at least for investors willing to hold it for the long term. 2. Vertex Pharmaceuticals Vertex Pharmaceuticals, a biotech leader, could have important catalysts this year. First, the company's newer launches, Journavx for acute pain and Casgevy for sickle cell disease and beta thalassemia, should make meaningful progress. The company projects these products will generate at least $500 million in sales this year. That's not that much. The drugmaker's total revenue in 2025 was $12 billion. However, Vertex has relied exclusively on its cystic fibrosis (CF) franchise to drive growth for a long time. Casgevy and Journavx are steadily ramping up their sales and could meaningfully contribute to top-line growth in the coming years. Second, Vertex Pharmaceuticals should make important clinical and regulatory progress in 2026. The company plans to request approval for zimislecel, an investigational medicine for Type 1 diabetes, this year. Today's Change(-0.60%) $-2.92Current Price$480.13 It should also release data from phase 3 studies for next-gen programs, including povetacicept for IgA Nephropathy and inaxaplin for APOL-1 mediated kidney disease. With these in its back pocket, Vertex Pharmaceuticals' lineup will become even stronger and more diversified. The company can still ride its CF franchise for a while, but these newer products will ensure that, even if it encounters competition in its core area of expertise (it hasn't had any meaningful competition yet), it can overcome it. Vertex's strong lineup and innovative streak make the stock a buy this month.