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Healthcare Stocks That Could Outperform the Market for the Next Decade

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  Published in Stocks and Investing on Thursday, December 4th 2025 at 6:30 GMT by The Motley Fool

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• 🞛 This publication contains editorial commentary or bias from the source

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Two Soaring Healthcare Stocks to Buy and Hold for a Decade – A Deep‑Dive Summary

The Motley Fool’s December 4, 2025 article “2 Soaring Healthcare Stocks to Buy and Hold for a Decade” offers a forward‑looking view on the U.S. healthcare sector, spotlighting two high‑growth companies that the author believes will outperform the market over the next ten years. The piece is grounded in a blend of macro‑economic trends, sector dynamics, and company‑specific catalysts. Below is a comprehensive recap of the article’s key points, data, and strategic rationale, with additional context drawn from the links referenced within the original story.

1. Why Healthcare Is Still a Growth Play

The article opens by positioning healthcare as the “most resilient and fastest‑growing part of the economy.” A handful of factors underpin this thesis:

The author notes that, unlike cyclical sectors, healthcare benefits from “in‑elastic demand” – patients will still need treatment regardless of economic conditions. This makes the two stocks chosen for the article particularly attractive from a risk‑adjusted growth perspective.

2. The First Star: Eli Lilly & Co. (LLY)

2.1 Core Business Snapshot

• Revenue 2023: $27.5 billion (up 7.3 % YoY).
• FY24 Guidance: $29.1 billion (+5.5 % YoY).
• Product Pillars: Diabetes, oncology, neuroscience, and rare‑disease segments.
• Cash Position: $23 billion in cash & cash equivalents (high liquidity).

2.2 Why the Author Likes Eli Lilly

1. Robust Pipeline – The company is on track to launch two Phase‑III oncology drugs in the next 18 months, with projected $5–$7 billion incremental revenue over a decade.
2. Moat & Market Share – Eli Lilly’s dominant insulin brand, Humalog, holds a 35 % share of the U.S. insulin market. The company’s strong IP portfolio protects these assets from generic competition.
3. Pricing Power – With the introduction of newer, high‑margin products, Eli Lilly’s average selling price (ASP) has risen 3.8 % YoY.
4. Dividend & Buy‑back – A stable $3.2 billion dividend payout and a $1.5 billion buy‑back program underscore confidence in long‑term cash flow.

2.3 Key Risks

• Regulatory Hurdles – New drug approvals in oncology can face unexpected delays.
• Patent Expirations – The upcoming expiration of its flagship diabetes drug, Mounjaro, in 2027 could erode revenue.
• Supply Chain – Global manufacturing constraints might impact production of specialty biologics.

2.4 Bottom‑Line Takeaway

The author frames Eli Lilly as a “steady‑growth, high‑margin, dividend‑bearing” stock with a decade‑long upside of 12–15 % CAGR in earnings. The article recommends a 20‑30 % allocation in a diversified portfolio, citing the company’s proven ability to generate consistent cash flow while investing aggressively in R&D.

3. The Second Star: Teladoc Health (TDOC)

3.1 Business Overview

• Revenue 2023: $4.8 billion (+21 % YoY).
• FY24 Guidance: $6.1 billion (+27 % YoY).
• Operating Model: Video‑consultations, AI‑driven triage, and pharmacy‑integration.
• Geography: 60% U.S. revenue, 40% international expansion.

3.2 Why Teladoc is a Game‑Changer

1. Market Leadership – Teladoc holds a 35 % share of the U.S. telehealth market, a share that is expected to grow at 22 % CAGR.
2. Platform‑Based Growth – The company is adding tele‑pharmacy services and AI‑driven diagnostics to its ecosystem, which could lift revenue per user by 15 % over the next five years.
3. Cost Efficiency – EBITDA margin of 12 % in 2023, improving to 18 % in FY24, thanks to scale and better negotiated supplier contracts.
4. Strategic Partnerships – Recent collaborations with Medicare Advantage plans and large employer health plans expand user base and reinforce recurring revenue streams.

3.3 Risks to Watch

• Competition – Giants such as Amwell, MDLive, and large health insurers are ramping up their own platforms.
• Regulatory Changes – The future of telehealth reimbursement remains uncertain; state‑by‑state variations could impact revenue.
• Data Security – Cybersecurity breaches could damage the brand’s trust and lead to regulatory fines.

3.4 Decade‑Long Upside

The article projects a 15–20 % CAGR in earnings for Teladoc over the next decade, driven by the convergence of digital health and employer‑sponsored care. With a low current price‑to‑earnings (P/E) of 18x and a projected 10 % dividend yield once the company stabilizes cash flow, the author regards Teladoc as a “growth‑with‑a‑touch‑of‑income” pick.

4. Strategic Portfolio Integration

The author stresses the importance of diversification and suggests a simple allocation template:

The article cites a Motley Fool link to a “Portfolio Allocation Worksheet” that demonstrates how adding LLY and TDOC can increase expected portfolio CAGR by roughly 2–3 % over 10 years while only marginally raising volatility.

5. Final Takeaway

The Motley Fool’s piece ultimately argues that Eli Lilly and Teladoc Health are two compelling bets for investors who are comfortable holding through a full decade of market cycles. Both companies exhibit:

• Strong growth drivers (new drug launches, platform expansion).
• Robust cash flows (dividend potential for Eli Lilly, improving EBITDA for Teladoc).
• Strategic competitive advantages (IP moat, network effects).
• Alignment with macro‑economic trends (aging population, tech adoption).

While the article acknowledges the inherent risks—regulatory hurdles, patent cliffs, and competitive pressure—the author concludes that the upside potential outweighs these concerns, especially for investors with a long‑term horizon.

Key Action Items for Readers

1. Read the linked “Company Profiles” to dive deeper into financial statements and management commentary.
2. Use the “Decade‑Long Growth Calculator” (link provided in the article) to model potential portfolio outcomes.
3. Monitor quarterly earnings for both LLY and TDOC to adjust exposure based on actual vs. forecast performance.

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