These are some of the best-performing stocks in the health care sector over the past month

The health care sector is massive and incredibly varied, including companies that make medical equipment or drugs, those that offer medical services, and even those providing insurance in some cases. Within this sector, there are startups that are pre-revenue and working from quarter to quarter to launch an innovative product, major legacy service providers, and everything in between. Investors thus have many options to choose from when focused on health care. At the same time, though, the health care sector is highly complex, and investors are cautioned to familiarize themselves with the ins and outs of health care companies before investing.

Key Takeaways

• Some of the best health care stocks for May 2025, based on 30-day returns, include Nutex Health Inc. (NUTX), Summit Therapeutics Inc. (SMMT), and Zhengye Biotechnology Holding Ltd. (ZYBT).
• The best-performing health care stocks in the last month returned at least 18.7%.
• An aging population and increasing medical needs are two factors contributing to massive growth in the health sector.

We examine several of the best health care stocks to watch for May 2025, based on highest 30-day percentage return. We include an explanation of the other factors in our screen below. All data are current as of April 24, 2025.

What to Know About the Health Care Sector

The health care sector was among the hardest hit by the COVID-19 pandemic and has yet to fully recover; the sector continues to face a significant labor shortage that has been exacerbated by ongoing inflation concerns. Significant elements of the way health care operations function—from a shift away from in-person medical appointments to changes in insurance and demand for new products, among many others—have forced long-time leaders in the space to reevaluate their offerings and presented openings for upstart firms to gain a foothold. Going forward, the health care sector will wrestle with a growing population of patients who are eligible for Medicaid and Medicare, opportunities presented by AI, and more.

One trend for investors to keep a close eye on is the ongoing popularity of GLP-1 agonists, a type of drug used to treat Type 2 diabetes and to help with weight loss. With about 1 billion people globally living with obesity, the potential market for these drugs is incredibly large. The two leading providers of these drugs are Novo Nordisk A/S (NVO) and Eli Lilly and Co. (LLY), but the market is far from settled.

How We Chose the Best Health Care Stocks

To screen for the best health care stocks this month, we looked at firms listed on either the Nasdaq or the New York Stock Exchange. To ensure we focused on established companies, we filtered out any companies with a share price below $5, with a minimum daily trading volume of under 100,000, and with a market capitalization below $300 million. From that subset of stocks, we ranked companies according to the highest 30-day percentage return.

Notably, all but three of the companies in our results had no P/E ratio. One of the most common reasons for a company to not have a P/E ratio is if it either took a loss or generated no earnings in the given time period, or in the prior-year period for comparison. This makes the calculation of a P/E ratio impossible. For clinical-stage pharmaceutical firms, many of which are pre-revenue or consistently post losses while developing their products, it is common to not have a P/E ratio until the launch of a significant drug product.

Health Care Stock Advantages and Disadvantages

National health expenditures reached $4.9 trillion in 2023, making the health care sector massive. A key benefit health care provides to investors is consistent demand. Because individuals will always have medical needs to be met, the overall demand for health products and services typically remains at least constant and tends to increase over time as populations grow older. Nationwide health care expenditures are expected to surge to $6.8 trillion by the year 2030.

Health care companies are enticing to investors because they are highly incentivized to use and create new technology, both to meet rising demand and to improve the affordability of care they can offer. This focus on innovation may mean that health care stocks offer the potential for short- and long-term gains.

It is common in the sector for individual companies to experience a significant breakout when an important new product is launched—such as a new medical device with broad applications or a blockbuster new drug—or even when clinical trial data is encouraging. Health care stocks often experience astronomical rallies during these moments.

On the other hand, there are some risks to investing in health care companies that investors should be aware of as well. One of the biggest risks is the size and scope of the sector. Due to the technical nature of the work of many health care companies, it can be difficult for outside investors to accurately assess the viability of a company or its products. Additionally, many companies in the space are heavily impacted by legislation, which can change and contribute to volatility.

Undoubtedly there are opportunities for major returns for investors looking to the health care sector. However, no one can predict how a company’s stock may perform. The companies above led the sector in our screen, but past performance is not a guarantee of future returns.

The Bottom Line

The health care sector is massive, complex, and rich with opportunities for investors willing to take the time to understand its ins and outs. Our screen favors companies in the pharmaceuticals space that have experienced strong returns in the last month, occasionally due to the success of a popular drug or other product. But just as some of these firms may rise rapidly, they may also fall just as precipitously, particularly if a promising new product ends up not working as expected.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the above securities.

These are some of the best-performing stocks in the energy sector over the past month

Companies in the energy sector explore for and develop oil and gas products, provide consolidated utility services, and discover and market renewable energy sources, among other things. The energy market is massive and likely to only grow as demand surges. However, large-scale shifts away from the traditional fossil fuel portion of the sector have prompted even stalwart energy firms to pivot in recent years.

Key Takeaways

• The best energy stocks for May 2025 based on 30-day returns include Ramaco Resources Inc. (METC), Hallador Energy Co. (HNRG), and Warrior Met Coal Inc. (HCC).
• Collectively, energy stocks were down about 11.7% in the last month.
• Energy company stocks frequently move in tandem with the prices of energy products themselves. Because these products can be highly volatile, stock prices also have the potential for instability.

We’ve compiled the best energy stocks to watch for May 2025 based on 30-day returns. Other factors included in our screen can be found in the detailed explanation of our ranking methodology below. All data are current as of April 24, 2025.

What to Know About the Energy Sector

As a group, energy stocks were volatile in the first quarter of 2025 after spiking following the U.S. presidential election and falling toward the end of the year. In the last month, they have been uncommonly active, moving up and down quickly multiple times alongside geopolitical uncertainty, both domestic and international. Generally, energy stock prices often move in tandem with energy prices. For example, in 2022, amid the initial months of Russia’s invasion of Ukraine, energy prices peaked, and many companies in the sector also experienced gains.

Production levels around the world are an essential factor in the performance of energy sector stocks. U.S. oil production is expected to increase under President Trump, although it has been at a high level for some time prior to the new administration. On the other hand, some OPEC+ countries have capped production. Analysts expect demand for energy products to continue to grow, driven by factors including increased reliance on high-usage services like cloud and artificial intelligence, among other things.

How We Chose the Best Energy Stocks

We screened for the best energy stocks by looking at all energy companies trading on either the Nasdaq or the New York Stock Exchange. From there, we included companies with a share price of at least $5, with daily trading volumes of 100,000 or more, and with a market capitalization of $300 million or higher. This is to ensure that our screen includes established firms in the energy industry.

Next, we ranked the remaining energy companies by 30-day return and identified the top-performing stocks based on that metric. We excluded any companies with negative returns during that period. Our screen includes stocks of energy companies and does not include products utilized directly in energy trading.

In our list, two of the stocks do not include a P/E ratio. This may be the case when a company has posted losses in the period in question or in the prior year period, making it impossible to calculate a P/E ratio. Note also that only seven stocks from our screen had positive returns in the trailing one-month period.

Energy Stock Advantages and Disadvantages

The energy market is both gargantuan and growing, providing a significant potential benefit to investors. The global energy market is valued at about $6 trillion. Due to continued demand for energy to power factories, machinery, cars, and much more, companies are able to take part in the energy sector in many ways. This provides investors a range of options from which to choose within this large sector, including companies focused on energy production, transportation, distribution, storage, and more. Energy companies also exist in both traditional and more experimental corners of the market.

Demand for energy products is only likely to increase, and this is likely to drive growth in the size of the market into the future. The U.N. anticipates a global investment of $2.4 trillion per year over the coming decade in order to meet the goals of the Paris Climate Agreement. Renewable energy sources are becoming more popular and commonplace globally, offering investors a greater degree of variety in terms of the types of energy investment opportunities they experience.

There are also some important disadvantages and risks associated with energy sector investment. Fundamentally, many energy companies are heavily dependent upon the price of energy products; a crash in the market could be devastating, and even day-to-day volatility can make investing a challenge. As a highly complex, global market, energy can be difficult to assess for investors looking to identify strong options.

Further, many companies in the energy sector use products and practices that contribute significantly to climate change. Investors seeking companies with a strong history of meeting ESG standards may be limited in their approach in the energy sector.

While the stocks above are at the top of our list for this month, it’s important to remember that past performance does not guarantee future returns.

The Bottom Line

Energy sector companies include those focused on hydrocarbons, renewable energy, some utilities firms, and much more. Because they are often closely linked to the price of oil and other energy products, their share prices may be volatile. But the size of the market and the expectation of future growth make energy an enticing prospect for many investors.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the securities listed above.