Investors looking to navigate the stock market’s ups and downs are increasingly eyeing healthcare industry stocks as reliable hedges against the volatility of technology and other growth-oriented sectors. The performance of healthcare stocks tends to show resilience when larger markets falter, although results can vary significantly based on the specific industry within the healthcare sector.
Of particular interest are pharmaceutical and biotech companies, where certain stocks can behave more like aggressive growth investments. This dynamic presents an opportunity for investors to strike a balance by identifying high-growth stocks while also securing more stable defensive options.
For those considering an investment of $500, a diversified approach could include purchasing shares in both a high-growth company and a more stable player in the market. Notable choices for long-term holdings are Novo Nordisk and AbbVie.
Novo Nordisk, a global leader based in Denmark, specializes in GLP-1 (glucose-like peptide 1) drugs, which are increasingly in demand for weight management and diabetes treatment. The company’s flagship products, including Wegovy for weight loss and Ozempic and Rybelsus for diabetes care, place it among the dominant market players alongside Eli Lilly. Not only has the company seen a sales increase of 7% for its diabetes and obesity care drugs in fiscal 2025—significantly bolstered by a 26% growth in its obesity care segment—but projections suggest that the next few years will continue to see substantial growth. Analysts expect the GLP-1 market to expand to $254 billion by 2034, with a robust compound annual growth rate of 17%.
Currently, Novo Nordisk trades at a low valuation of around 13 times earnings, making it an attractive buy. At approximately $49 per share, an investor could acquire 10 shares for a total investment of $490, potentially capitalizing on the company’s promised growth.
On the other hand, AbbVie serves as an ideal counterbalance within a healthcare investment strategy. Spun off from Abbott Laboratories in 2013, AbbVie has demonstrated remarkable resilience, achieving a 24% increase during the 2022 bear market while the S&P 500 dropped 18%. The company has a strong track record of income generation, having increased its dividend for 13 consecutive years, currently offering a yield of 3.1%.
AbbVie’s stock performance has been impressive, averaging a 20% return annually over the past decade when factoring in reinvested dividends. Trading at about 15 times forward earnings, the stock presents value along with growth potential, particularly as AbbVie transitions away from its legacy drug, Humira—facing a patent expiration in 2028—to new treatments such as Skyrizi and Rinvoq. These newer drugs reported impressive net revenue growth of 33% and 30%, respectively, in 2025.
With analysts predicting an 11% increase in AbbVie’s stock price to $250 over the next year, securing one share of AbbVie and a few shares of Novo Nordisk could create a robust long-term investment strategy for those willing to invest around $500 in the healthcare sector. This balanced approach not only positions investors to benefit from growth but also provides stability in their portfolio.
