Prediction: These Could Be the Best-Performing Healthcare Stocks Through 2030

Believe it or not, we're nearly halfway through this decade. The healthcare sector could be in store for monumental changes over the next few years.

These changes should present great opportunities for investors to make money. But where should they put their money? I predict these could be the best-performing healthcare stocks through 2030 (listed by descending market cap).

1. Vertex Pharmaceuticals

Vertex Pharmaceuticals (VRTX -0.80%) already ranks among the biggest biopharmaceutical companies in the world. It has built a market cap of over $120 billion on the success of its cystic fibrosis (CF) franchise. But I think Vertex's growth prospects through the rest of the decade will come from non-CF therapies.

The big drugmaker already has one product outside of CF on the market. Vertex is ramping up the commercial launch of Casgevy in treating sickle cell disease and transfusion-dependent beta-thalassemia. The gene-editing therapy is a one-time functional cure for these two rare blood diseases.

I predict that Vertex will add three other blockbuster drugs that don't treat CF to its lineup by 2030. It seems likely to win U.S. approval of suzetrigine (VX-548) in moderate-to-severe acute pain next year. The company is evaluating inaxaplin in a phase 3 clinical study targeting APOL1-mediated kidney disease. Vertex's acquisition of Alpine Immune Sciences will give it a late-stage candidate targeting another kidney disease, IgA nephropathy.

Don't be surprised if Vertex achieves major milestones in curing type 1 diabetes over the next few years. The company has two experimental islet cell therapies in phase 1/2 testing that hold tremendous potential in curing the disease that affects roughly 3.8 million individuals in North America and Europe.

2. Viking Therapeutics

Viking Therapeutics (VKTX 4.41%) doesn't have an approved product on the market yet. However, its market cap of around $5.2 billion underscores investors' excitement about Viking's pipeline.

The huge stock gain for Viking in 2024 is primarily due to positive news for its experimental obesity drug, VK2735. Earlier this year, Viking announced impressive results from a phase 2 study of VK2735. The drug achieved greater weight loss after 13 weeks than Novo Nordisk's Wegovy and Eli Lilly's Zepbound.

Obesity isn't the only big market Viking is going after. A few weeks ago, the company reported positive results from a phase 2 study evaluating VK2809 in treating nonalcoholic steatohepatitis (NASH), which is also known as metabolic-associated steatohepatitis (MASH). Some analysts project that NASH/MASH could top $100 billion by 2030.

That's not all. Viking also has two early stage programs. It reported promising results in March for an oral version of VK2735. The company is evaluating VK0214 in a phase 1b study targeting X-linked adrenoleukodystrophy (X-ALD), a rare genetic disorder.

3. TransMedics Group

I don't think the list of big healthcare winners through 2030 will be limited to only biotech stocks. TransMedics Group (TMDX 1.89%) could be one of the top-performing medical device stocks through the rest of this decade and beyond. Its market cap of roughly $4.8 billion doesn't reflect the company's potential, in my view.

TransMedics is revolutionizing the organ transplant market. With the current standard of care (using coolers for transportation), most donated hearts, lungs, and livers don't make it to their intended recipient. TransMedics' OCS (Organ Care System) technology keeps organs functioning during transportation. The result: Significantly higher utilization and reduction of severe post-transplant complications.

One of the biggest challenges for TransMedics has been the lack of availability of airplanes to transport organs. That won't be much of a problem going forward, though. The company acquired a charter plane operator and has built its own fleet of aircraft.

I predict TransMedics' OCS will become the standard of care in organ transplants. I also believe the company will expand the size of the U.S. transplant market and move into other countries over time. TransMedics could and should have a much larger market cap by 2030.