trade-ideas

The Top-3 Healthcare Stocks to Own in 2026

As the healthcare sector heats up, these three firms are worth a checkup.

Ed Ponsi·Jan 7, 2026, 10:35 AM EST

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From an investment standpoint, will 2026 be remembered as a banner year for healthcare? We’re just three trading sessions into the new year, and already healthcare stocks are heating up. 

Keeping in mind that this sector isn’t known for volatility, take a look at the year-to-date (three session) returns on some popular healthcare ETFs:

-iShares U.S. Healthcare Providers (IHF) : +5%

-State Street Health Care Select SPDR (XLV) : +2.25%

-Vanguard Healthcare ETF (VHT): +2.25%

These figures may not seem impressive, but compare them to the early returns of some popular tech ETFs:

-State Street Technology SPDR (XLK) : +0.6%

-Vanguard Information Technology ETF (VGT) : +0.6%

-Fidelity MSCI Information Technology ETF (FTEC) : +0.6%

Since we’re seeing nascent strength in the healthcare sector, and possible signs of sector rotation, let’s dig deeper and scan the charts to find which individual stocks have the most potential going forward.

United Healthcare (UNH)

Speaking of healthcare stocks, my "Dog of the Dow" for 2026, United Healthcare (UNH) , was excluded from this analysis due to our recent purchase of that stock. For our latest analysis on United Healthcare, click here

Elevance Health

Elevance Health  (ELV)  has just broken out of a cup-and-handle pattern (shaded yellow). That pattern projects the stock to the $410 area. In the near-term, the stock faces little upside resistance. 

Elevance Health (ELV) daily chart via TradingView

On Tuesday, Elevance reached a six-month high, after closing higher for the fifth consecutive session. The stock recently broke above its 200-day moving average (red). 

GRADE: A-

Centene Corp (CNC)

St. Louis-based Centene Corp  (CNC)  also closed at a six-month high on Tuesday. Over the past six months, this stock has gained 38.4%.

Centene Corp (CNC) daily chart via TradingView

Centene is currently filling a huge gap (point A), giving the stock an express path to $53. Earlier this week, Centene closed above its 200-day moving average (red) for the first time in over a year. 

GRADE: A-

Molina Healthcare (MOH)

Molina Healthcare  (MOH)  has gained over 6% since the calendar switched to 2026, but this stock has quietly gained 19% over the past month. Last year, shares of Molina fell by 19.45%.

On the positive side, Molina recently broke out from a cup-and-handle pattern (shaded yellow). That pattern projects the stock to $200. On Tuesday, Molina closed at a two-month high. 

Molina Healthcare (MOH) daily chart via TradingView

On the negative side, Molina is now entering an area of resistance stretching from $185 to $205 (shaded blue). Beyond that obstacle lies the stock’s 200-day moving average (red) currently resting at $222.

Molina will need to show some serious strength to break through these resistance levels, but if it succeeds, the stock will have plenty of room to run. 

GRADE: B

At the time of publication, Ponsi was long ELV, MOH and CNC.