Healthcare stocks are generally more resilient in a challenging macro backdrop compared to stocks in other sectors. This is because the need for medicines and medical treatments is not discretionary in nature. Despite concerns about tariffs, analysts are bullish on several healthcare stocks. Using TipRanks’ Stock Comparison Tool, we placed Eli Lilly (LLY), Vertex Pharmaceuticals (VRTX), and AbbVie (ABBV) against each other to find the most attractive healthcare stock, according to Wall Street analysts.
Eli Lilly (NYSE:LLY)
Pharmaceutical giant Eli Lilly delivered market-beating results for the first quarter of 2025, driven by solid sales of its weight loss drug Zepbound and diabetes treatment Mounjaro.
However, LLY stock plunged following the results as the company lowered its full-year earnings outlook due to a $1.57 billion charge related to the acquisition of an oral cancer drug from Scorpion Therapeutics.
Nonetheless, most analysts remain upbeat about LLY stock due to the robust demand for its GLP-1 drugs – Zepbound and Mounjaro. It is worth noting that Mounjaro’s sales surged 113% year-over-year to $3.84 billion while Zepbound’s sales more than quadrupled to $2.31 billion.
Is LLY a Good Stock to Buy Now?
Following the Q1 print, UBS analyst Trung Huynh lowered his price target for Eli Lilly stock to $1,050 from $1,100 while reaffirming a Buy rating. The 4-star analyst stated that the company’s strong Q1 2025 performance was overshadowed by (a) rising concerns over pricing of the GLP-1 drugs, sparked by the news that CVS Caremark will prioritize Novo Nordisk’s (NVO) Wegovy ahead of Zepbound on its formularies, (b) lower expectations from Lilly’s orforglipron obesity drug, (c) withdrawal of tirzepatide’s HFpEF indication, and (4) a “Tech-on, Healthcare-off” rotation in stocks.
While Huynh acknowledged some of these concerns, he contends that the stock market overreacted, as (a) the covered lives on CVS Caremark is low, (b) the company could be “sandbagging” expectations from the ATTAIN trial related to orforglipron, and (c) all the patients in the HFpEF indication are already covered by the obesity indications, and there could be an alternative to use other subgroup data to resubmit for this indication at a future date.
Overall, Wall Street has a Strong Buy consensus rating on Eli Lilly stock based on 18 Buys and one Sell recommendation. The average LLY stock price target of $981 implies about 26.6% upside potential. LLY stock is flat year-to-date. Eli Lilly offers a quarterly dividend of $1.50, reflecting a dividend yield of 0.66%.
Vertex Pharmaceuticals (NASDAQ:VRTX)
Vertex Pharmaceuticals is a biotechnology company with a portfolio that comprises approved medicines for treating cystic fibrosis, sickle cell disease, and transfusion-dependent beta thalassemia. VRTX stock plunged 10% on May 6, as the company’s first-quarter results missed the Street’s expectations. Notably, the growth in Vertex’s U.S. revenue, partly due to higher prices, was partially offset by lower international revenue owing to a decline in sales from Russia, where the company is witnessing a violation of its intellectual property rights.
Another setback was Vertex’s decision to temporarily pause the multiple ascending dose portion of its phase 1/2 study evaluating messenger RNA (mRNA) therapy, VX-522, in treating cystic fibrosis (CF) “to assess a tolerability issue.”
On the positive side, the company raised the lower end of its revenue forecast, with the expectation that its newer CF drugs and its acute pain drug Journavx will drive growth.
Is VRTX a Good Stock to Buy?
In reaction to the Q1 results, Leerink Partners analyst David Risinger downgraded Vertex Pharmaceuticals stock to Hold from Buy and lowered the price target to $503 from $550. The 5-star analyst said that he no longer expects Journavx acute pain treatment’s sales and formulary access to surprise on the upside. Risinger stated that he now awaits future updates on Journavx formulary access, prescription uptake, and net pricing.
The analyst said that he lowered his Journavx sales projections, including the 2025 estimate by 56% to $63 million, the 2026 estimate by 50% to $361 million, and the 2030 estimate by 39% to $4.1 billion. The downward revisions were partially offset by VRTX’s cystic fibrosis franchise increases. While Risinger thinks that VRTX has lucrative long-term growth prospects, he contends that it is difficult to predict Journavx’s performance over the near term. Also, he doesn’t expect interim readouts from VRTX’s two kidney studies until 2026.
Amid ongoing pressures, Wall Street has a Moderate Buy consensus rating on Vertex Pharmaceuticals stock based on 15 Buys and 12 Holds. The average VRTX stock price target of $512.38 implies about 14% upside potential. Despite the post-Q1 results decline, VRTX stock is still up about 12% so far in 2025.
AbbVie Inc. (NYSE:ABBV)
Pharmaceutical company AbbVie has an extensive product portfolio focused on key therapeutic areas like immunology, neuroscience, oncology, and eye care. The company has been delivering strong performance despite the loss of exclusivity of its blockbuster arthritis drug Humira in 2023, thanks to the rapid growth of its newer immunology treatments.
Recently, AbbVie reported solid Q1 2025 results, with its immunology drugs Skyrizi and Rinvoq delivering robust sales and offsetting the decline in Humira revenue due to competition from biosimilars. The company expects the two drugs that treat several autoimmune disorders to generate more than $31 billion in 2027.
Additionally, AbbVie raised its full-year EPS guidance but clarified that the upgraded outlook didn’t include the impact of any potential changes in trade policies, including pharma sector tariffs that could impact its business.
Is ABBV a Buy, Sell, or Hold?
Reacting to the Q1 print, BMO Capital analyst Evan Seigerman reiterated a Buy rating on AbbVie stock with a price target of $215. The 4-star analyst stated that AbbVie’s strong top and bottom-line beats “continue to position the company as a stable commercial executer with Skyrizi and Rinvoq growth outpacing expectations.” He noted that Skyrizi and Rinvoq sales exceeded consensus expectations by 7% and 8%, respectively, offsetting a greater-than-expected decline in Humira sales.
Seigerman noted that AbbVie’s Parkinson’s treatment Vyalev’s initial growth outpaced his expectations, providing additional upside to the company’s neuroscience portfolio. The analyst estimates that benefits from forex changes could contribute meaningfully to ABBV’s noted strength. Finally, Seigerman thinks that the EPS guidance upgrade in spite of IPR&D (In-Process Research and Development) is “further encouraging.”
AbbVie stock earns a Strong Buy consensus rating on TipRanks, backed by 14 Buys and four Holds. The average ABBV stock price target of $215.60 indicates 15.2% upside potential. ABBV stock has risen 5.3% year-to-date. With a quarterly dividend of $1.34 per share, AbbVie offers a dividend yield of 3.3%.
Conclusion
Wall Street is highly bullish on Eli Lilly and AbbVie but cautiously optimistic on Vertex Pharmaceuticals. Analysts see higher upside potential in LLY stock than in the other two healthcare stocks. Eli Lilly’s weight loss drugs and strong pipeline support analysts’ bullish thesis.