Out with the old (tech), in with the new (healthcare). After several volatile weeks, it appears a full-fledged rotation has begun with investors fleeing previously high-flying tech winners in favor of underserved healthcare stocks.
The rotation has technical and fundamental tailwinds too, as healthcare earnings have been strong and several stocks are breaking out into new uptrends.
Today, we’ll look at six stocks in the healthcare sector that have been surging higher for a variety of reasons and score well on Benzinga’s Momentum rankings.
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Cardinal Health Inc.
Benzinga Edge Momentum Score: 88.62
We’ll lead off in large-cap territory with Cardinal Health (NYSE:CAH), one of the “Big 3” pharmaceutical wholesalers along with McKesson Corp. and Cencoca Inc. Cardinal Health, with a $48 billion market cap, has generated more than $50 billion in sales every quarter since Q1 2023. The company’s primary revenue driver is the sale of generic and branded drugs to pharmacies and hospitals. The stock is up more than 70% year-to-date (YTD), but momentum has picked up recently thanks to a strong catalyst: the firm’s Q3 earnings report.
CAH shares had been trading in a tight range since July, but the Q3 earnings release on October 30th sent shares up 15% in a single day. Cardinal posted its first top and bottom line beat since Q4 last year, with EPS numbers coming in more than 16% above the consensus expectation. Technical trend followers may have spotted this earnings beat coming; the stock surged above the 50-day simple moving average (SMA) in the weeks leading up to the release.
Guardant Health Inc.
Benzinga Edge Momentum Score: 97.44
Guardant Health (NASDAQ:GH) is another large-cap healthcare stock riding a rally this month, but with a very different specialty than Cardinal. Guadant is an oncology diagnostics company focused on blood-based cancers. Its primary revenue source is the Guardant360 system, which offers non-invasive screening tests that can detect more than 70 cancer-related gene mutations. The company recently received FDA approval for its Guardant360 CDx companion diagnostic system, a breast cancer diagnostic tool.
Like CAH, GH’s shares received a massive post-earnings pump thanks to better-than-expected results. The company reported a narrower loss than analysts anticipated and $265 million in revenue – a quarterly record representing more than 38% year-over-year (YOY) growth. The stock began trending up several weeks before the results, when the support level jumped from the 200-day SMA to the 50-day SMA and held firm. A pullback to previous support wouldn’t be surprising from here, but the long-term uptrend looks promising.
Abivax SA
Benzinga Edge Momentum Score: 99.88
Now let’s jump to the biotech sector with Abivax (NASDAQ:ABVX), a French pharmaceutical developer focused on chronic inflammatory diseases. The company’s flagship drug, obefazimod, is a treatment for moderate-to-severe ulcerative colitis and is currently in clinical trials. Abivax announced results from Phase 3 clinical trials in July, and you can probably guess how well those results were received based on the nearly 600% gain the stock had in a single session.
Abivax’s primary drug shows plenty of promise, and the upside in ABVX shares still may not be priced in. The stock is up another 60% in the last three months following a deluge of analyst price target increases, including a new high of $176 from Wolfe Research. Overall, the stock has a consensus Buy rating from 15 analysts, with an average target price of $156 based on the three most recent upgrades.
Medpace Holdings Inc.
Benzinga Edge Momentum Score: 93.62
Companies like Abivax develop the drugs, but they need companies like Medpace (NASDAQ:MEDP) to test their efficacy. Medpace Holdings offers clinical trial services to pharmaceutical and medical device developers; its recent earnings performance has sparked a significant stock rally. Shares are up more than 75% YTD, and earnings beats have been the catalyst for two of the largest up days during the rally.
Medpace’s Q2 2025 revenue exceeded expectations by nearly 12%, and the company announced another top and bottom beat for Q3 when results were announced on October 22nd. Management reported Q3 revenue up more than 23% YOY and expects to quickly refill its 2026 backlog following cancellations earlier this year. The technical tailwinds are promising too, as the stock appears to be developing upward momentum with support along the 50-day SMA.
Elanco Animal Health Inc.
Benzinga Edge Momentum Score: 89.21
Four-legged family members need healthcare, too. Elanco Animal Health (NYSE:ELAN) develops a host of food, medicines, and preventatives for both pets and farm animals. One of the company’s most successful products is Simparica Trio, an oral medication for dogs that prevents ticks, fleas, roundworms, and more. ELAN shares are up 76% this year, and once again, the rally is based on solid earnings, not speculation or potential profits.
Elanco’s Q3 earnings exceeded top and bottom-line expectations. The company raised full-year guidance with both the Pet Health and Farm animal divisions reporting double-digit YOY sales growth. Despite the positive earnings news, ELAN shares are down over the last month and have pulled back to the 50-day SMA. However, the 50-day SMA has been a key area of bounce support. This could be a good entry point for new investors (especially with the RSI at its lowest level since August).
GeneDx Holdings Corp.
Benzinga Edge Momentum Score: 93.18
GeneDx Holdings (NASDAQ:WGS) specializes in exome and genome testing, a still speculative area of the healthcare industry, and has only recently started turning a profit. However, GeneDx is a consistent winner during earnings season. Results posted last month included a huge guidance raise for both total revenue and adjusted gross margins. The company’s market cap is now approaching $4 billion following back-to-back quarters with $100 million in sales.
WGS shares have been volatile over the last three months, but the pull between buyers and sellers has been evenly matched. However, the stock is bouncing off the 50-day SMA again, which could offer another buying opportunity.
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