Healthcare Stocks Trading Guide: All You Need to Know

The healthcare industry is arguably one of the most vital sectors in the market and one that plays an important role in our daily lives. It provides life-saving medicines and innovations that have shaped the healthcare system as we know it today. As such, this sector might interest many traders and investors seeking further trading opportunities. In light of this, the following article features some useful information for those thinking of trading healthcare stocks:

TL;DR

• The healthcare sector is crucial for providing life-saving medicines and innovations, making it a focal point for traders and investors.

• The ageing population, medical innovations, earnings reports, and monetary policy changes can shift healthcare stock prices.

• Notable healthcare companies include Universal Health Services, Intuitive Surgical, Eli Lilly, and others.

• Trading healthcare share prices can be done with Plus500’s Equity Index Futures

What Are Healthcare Stocks?

Healthcare stocks refer to the shares of publicly traded companies in the healthcare sector, such as those developing medical equipment and pharmaceuticals and providing medical care.

What Are the Different Types of Healthcare Stocks?

Some of the main types of healthcare companies include those involved in the development and production of pharmaceuticals aimed at treating and preventing diseases. On the other hand, medical device stocks consist of businesses that design and manufacture essential medical instruments and equipment, which are crucial for medical research and development and often support pharmaceutical firms. 

Health insurance stocks include companies that provide health insurance plans to help cover medical expenses for both employers and individual consumers, as well as pharmacy benefits managers (PBMs). 

Additionally, medical services provider stocks encompass a variety of organisations, such as hospital operators, home healthcare providers, and managed care facilities, all of which deliver vital healthcare services within the broader healthcare industry.

What Moves the Price of Healthcare Stocks?

Some of the main drivers of healthcare stock prices include:

• The Ageing Population: As the population ages, there is a greater demand for medical care, which can lead to increased medicine prices and benefit the companies involved.

• Innovations: Cutting-edge medical technologies and new medicines may significantly boost stock prices for healthcare companies. 

• Monetary Policy Changes: Adjustments in interest rates or taxation can also impact healthcare stocks.

• Earnings Reports: These reports may also influence the prices of healthcare stocks. Positive earnings can boost stock prices and vice versa.

Top Healthcare Stocks (2025)

While during the Covid-19 pandemic, the leading healthcare companies that made the headlines were Pfizer (PFE) and Moderna (MRNA), as of September 2025, here are some of the most significant healthcare stocks:

• Cardinal Health Inc

• Gilead Sciences Inc

• Insulet Corporation 

• Solventum Corp

• Boston Scientific Corp

• ResMed Inc. 

• Cencora Inc. 

• Quest Diagnostics Inc.

• Abbot Laboratories 

(Source: Nerd Wallet)

How to Trade Healthcare Stocks

While one way to trade healthcare stocks is through directly buying or selling shares on stock exchanges, another way traders and investors may want to keep in mind is Futures trading. 

With Equity Index Futures trading, traders get exposure to the price movements of healthcare stocks in one place (through an index). They don’t need to own the shares as underlying assets, and they get access to leveraged trading, which can magnify both gains and losses. 

*Trading in futures and options involves the risk of loss and is not suitable for every investor. 

Conclusion

The healthcare industry is a critical sector that significantly impacts both the market and everyday life by providing essential medicines and innovations. Healthcare stocks represent shares in publicly traded companies involved in various areas, including pharmaceuticals, medical devices, health insurance, and medical services. 

Key factors influencing the prices of healthcare stocks include the ageing population, technological innovations, changes in monetary policy, and earnings reports.

For traders, options for investing in healthcare stocks include, but are not limited to, direct investments or trading Equity Index Futures contracts,  which allow for leveraged exposure to price movements without owning the shares outright.

*Past performance does not reflect future results.