It’s been a wild first half of the year for stocks in 2025, but finding the right companies for your portfolio is a very personal process. You need to consider the type of stocks you want to buy, the industries and sectors you gravitate toward, the amount of capital you have to invest, and your own personal risk tolerance.

If you have cash to invest in the stock market right now, and you’re looking for growth stocks that could make smart additions to the basket of businesses you own, there are names to be found across a range of industries, including healthcare. Here are two healthcare stocks that have at least doubled over the past 12 months but still look poised to deliver favorable returns for shareholders in the next three to five years. 

1. Hims & Hers Health

Hims & Hers Health (HIMS -5.41%) has witnessed a stock run-up of more than 200% over the trailing-12-month period. In contrast, the S&P 500 is up only about 18% in that same time frame. This boom in the company’s share price has occurred for a few reasons. Investors were particularly excited about the company’s ability to offer affordable, compounded GLP-1 drugs for weight loss amid shortages of branded versions, and that fueled significant revenue growth and share-price appreciation.

However, Hims & Hers can no longer mass-produce compounded drugs like semaglutide because the U.S. Food and Drug Administration declared the shortage resolved. While the company may still offer personalized doses where clinically applicable, its primary weight loss offerings are shifting to oral medications and liraglutide. In fact, Novo Nordisk, the maker of Wegovy (semaglutide for weight) and Ozempic (semaglutide for diabetes), ended its partnership with Hims & Hers, citing concerns over the latter company’s promotion and sales of compounded semaglutide.

While the company’s offerings may evolve in the coming months and years, it has other sources of growth to lean on besides the weight loss segment. Hims & Hers’ areas of focus include sexual health, hair loss, dermatology, mental health, and primary care. The platform also provides access to both over-the-counter and prescription treatments via online consultations with licensed healthcare professionals, and most of its revenue still comes from recurring subscriptions paid by healthcare consumers.

The recent acquisition of Zava, a European digital health platform, seems to have boosted investor confidence in the future of the business outside of its ambitions in the weight loss industry. The addition of Zava to Hims & Hers’ ecosystem will expand its reach into the U.K., Ireland, France, and Germany. Hims & Hers also plans to launch its platform in Canada in 2026.

Revenue grew by 110% year over year in the first quarter, and the company is building upon an improving track record of profitability. Hims & Hers also delivered free cash flow of about $50 million in Q1. This business has a lot of potential.

2. Doximity

Doximity (DOCS -2.45%) has seen shares pop by a bit more than 100% since this time one year ago. Doximity is known as the largest digital platform for U.S. medical professionals. It serves as a professional and social network for healthcare professionals including doctors, nurse practitioners, and physician assistants, and offers a wide variety of tools for communication, news, and career management.

Doximity provides a curated newsfeed with the latest medical news and research relevant to different specialties, and also offers tools for job searches, salary comparisons, and reputation management. The platform even provides telehealth solutions, enabling virtual patient visits and consultations.

The platform is free for healthcare professionals to use. This free access includes Doximity Dialer, a feature that allows secure communication with patients using a customized calling tool. The platform also offers free digital fax lines and access to Doximity Scribe, an AI-powered note-taking tool for verified clinicians. So, how does Doximity make money? From advertising and selling information. 

Doximity’s platform is a prime digital marketing and advertising tool for pharmaceutical manufacturers and healthcare systems (like hospitals). These entities pay Doximity to advertise and promote their products and services to targeted medical professionals. Health systems and medical recruiting firms also pay Doximity to access its database of medical professionals for recruitment and hiring purposes.

In Doximity’s fiscal 2025, which ended March 31, revenue increased 20% from the prior fiscal year to $570.4 million. The company reported net income of $223.2 million, up 51% year over year, with free cash flow spiking 50% to $266.7 million. This healthcare stock is really an advertising business at its core, and a profitable one at that. These factors could induce some investors to take another long look at this top stock and I think it has room to run.

Rachel Warren has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Doximity and Hims & Hers Health. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.

Many companies have failed to disrupt the complicated U.S. healthcare market. Hims & Hers (HIMS 6.75%) may finally be succeeding in cracking the code. The online telehealth platform focuses on circumventing the insurance market; its business of selling affordable medications directly to individuals is growing like a weed, and expects to generate $6.5 billion in revenue by 2030.

It has had a tumultuous start to 2025, as Hims & Hers waged a battle to sell new weight loss medications on its online marketplace. Now, with momentum back on its side, the stock is up 118% year to date and 446% in the last five years. Let’s take a deeper look at this company, and see whether you might want to buy Hims & Hers stock for your portfolio now.

Disrupting the healthcare market

Hims & Hers’ model is simple. It has two separate web platforms — Hims for men and Hers for women — that sell medications and deliver to customers’ front doors. It began with sexual health, but has moved into dermatology, hair loss, mental health, and now weight loss medications.

A key to its success has been avoiding the insurance market with products that don’t break the bank. Customers loathe dealing with health insurers in the United States, and sometimes would rather not use insurance at all. Plus, some of these products aren’t covered by insurance.

This strategy has helped the company close in on over $2 billion in projected revenue in 2025. To keep up this impressive growth, Hims & Hers wants to offer weight loss medications, which have been a blockbuster set of drugs for the pharmaceutical market. For a while the popularity of these drugs, such as Novo Nordisk‘s Wegovy, left them in short supply; that allowed third parties such as Hims & Hers to produce them as a compounding pharmacy and sell them at much cheaper prices. This ended up generating $200 million of Hims & Hers’ $1.4 billion in 2024 revenue.

But with the shortage of Wegovy over and the compounding pharmacy exception ended, the company’s weight-loss business was at a major turning point. Luckily, at the end of April Hims & Hers announced a partnership with Novo Nordisk that seems to resolve this issue: It gives Hims & Hers the ability to sell Wegovy directly on its platform. Hims & Hers is not an exclusive supplier of the drug — or any drugs on its marketplaces, to be fair — but it hopes to use its subscription business model, marketing expertise, and simplified user proposition to drive sales for Novo Nordisk in the huge obesity-care market.

Going abroad and personalization

Besides weight loss drugs, Hims & Hers has more ambitions to reach its goal of $6.5 billion in revenue by 2030. Just recently, the company announced its intent to acquire European competitor Zava so it could expand its telehealth service to Europe. The acquisition will add a platform with 1.3 million active customers in the U.K., Germany, France, and Ireland. It makes sense that Hims & Hers can supercharge growth for the platform with its plethora of medications offered to customers, keen marketing skills, and subscription-based selling model.

Over the long run, Hims & Hers aims to make healthcare for its customers more personalized. This includes unique drug combinations, its own outsourcing facility, and at-home testing capabilities. Details remain sparse, but the vision is clear: disrupting more and more of the trillions of dollars spent on healthcare by building a business that people actually enjoy interacting with. This is why 2.4 million active customers use Hims & Hers today.

HIMS Gross Profit Margin data by YCharts.

Should you buy Hims & Hers stock?

A revenue goal of $6.5 billion seems well within reach by 2030. Hims & Hers is only at 2.4 million active customers, and there are tens of millions of people in the United States alone who could start using or switch to one of its telehealth platforms. Add on the Zava acquisition in Europe, and the runway for growth gets even larger.

The company has an impressive gross profit margin of 77%, which should lead to high levels of profitability at scale. On $6.5 billion in future revenue, it could very well post a net profit margin of over 20%, and achieve $1.5 billion in bottom-line profits and free cash flow. A 20% profit margin is easily achievable because of its high gross margins and the fact it currently spends 40% of revenue on marketing today, a figure that has come down over time and should come down even more as Hims & Hers keeps scaling.

However, Hims & Hers has played fast and loose with laws and regulations in the past. It sold weight loss drugs when the legality of doing so was unclear, and although that dispute seems to have been resolved, management could easily start playing with fire again and burn its reputation as a trusted provider of medications.

Otherwise, this looks like a fantastic growth stock that just doubled its addressable market with the Zava acquisition. Today, Hims & Hers has a market cap of $12.3 billion. You might think it’s overvalued because of the stock’s recent run-up in price, but the numbers show that patient investors could be rewarded by holding for the long term.

A $12.3 billion market cap is only around 8 times my 2030 earnings estimate of $1.5 billion, which would be a dirt cheap price-to-earnings (P/E) ratio for a fast-growing company compared to the current market cap. Most likely, the stock will be valued at a higher multiple than 8, meaning that the stock will be higher in five years. It doesn’t come without risks, but if you’re a growth investor, you might love Hims & Hers stock for its long-term potential.