3 Top Healthcare Stocks to Buy in October

Published: Monday, October 13, 2025 at 9:21 am

Healthcare Stocks Present Buying Opportunities Despite Recent Challenges

The healthcare sector has faced headwinds over the past year, underperforming the broader stock market. Political tensions and policy uncertainties have contributed to this downturn. However, the fundamental need for healthcare remains constant, creating potential opportunities for long-term investors.

Three healthcare stocks are highlighted as potential buys. Novo Nordisk, a leader in diabetes and weight loss drugs, has seen its shares decline significantly due to competition from compounding pharmacies. The company is taking steps to address this, including the planned launch of an oral tablet version of its weight loss drug, Wegovy. Despite these challenges, Novo Nordisk's price-to-earnings ratio is near its decade lows, and the weight loss drug market is projected to experience substantial growth.

Danaher, a company that provides tools and products for healthcare companies to develop new drugs and medicines, is another stock to consider. Danaher has a strong track record of acquiring and integrating businesses, with its stock significantly outperforming the S&P 500 over the long term. While its forward P/E is somewhat high, its valuation is considered reasonable for a company with a history of excellence.

UnitedHealth Group, a major insurance and healthcare services provider, has been impacted by political controversy and investigations into its business practices. The stock has declined but has since rebounded from its lows. Investors should be aware of the regulatory risks facing the company. However, the stock trades at a low valuation, and a successful navigation of the current challenges could lead to a lucrative rebound.

BNN's Perspective: While the healthcare sector faces challenges, the fundamental demand for healthcare services and innovation suggests long-term growth potential. Investors should carefully consider the risks associated with each company, particularly regulatory and competitive pressures, before making investment decisions. Diversification within the sector is always a prudent strategy.

Keywords: Healthcare stocks, Novo Nordisk, Danaher, UnitedHealth Group, weight loss drugs, Ozempic, Wegovy, price-to-earnings ratio, regulatory risks, investment opportunities, stock market, healthcare industry

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