Healthcare industry stocks are traditionally good hedges against technology and other growth stocks, because they tend to perform well when the larger stock markets do not.
But it depends on which industry. In the pharmaceutical or biotech industries, for example, some stocks tend to behave more like growth stocks. A nice feature of investing in the sector is the ability to find high-flying growth stocks and balance them out with more stable defensive stocks.
Even if you had just $500 to invest, I would probably look at one from each side and focus on those with plenty of long-term upside. Two good stocks to buy and hold for the long haul are Novo Nordisk (NVO +1.27%) and AbbVie (ABBV +1.71%).
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1. Novo Nordisk
Novo Nordisk would be considered one of those high-growth-potential healthcare stocks. But what makes it even more attractive right now is its low valuation.
Novo Nordisk is a global pharmaceutical company based in Denmark that is one of the leaders in making GLP-1 (glucose-like peptide 1) drugs, which are approved for weight loss and diabetes management. Along with Eli Lilly, Novo Nordisk is the dominant player in this space with its weight management drug Wegovy and its diabetes management drugs Ozempic and Rybelsus.
In fiscal 2025, its diabetes and obesity care drugs saw sales increase 7%, with a 26% gain in obesity care drugs. For 2026, sales growth is targeted at 5% to 13% and will be positively impacted by a reversal of sales rebate provisions in the U.S.
Experts predict that the GLP-1 market will grow to $254 billion by 2034, which would be a compound annual growth rate of 17%, so this market is not slowing down, and Novo Nordisk stands to reap the benefits for years.
Today’s Change
(1.27%) $0.62
Current Price
$49.55
Key Data Points
Market Cap
$167B
Day’s Range
$49.20 – $49.84
52wk Range
$43.08 – $93.80
Volume
376K
Avg Vol
22M
Gross Margin
80.90%
Dividend Yield
3.48%
And, as mentioned, the stock is cheap right now, trading at 13 times earnings, so it looks like a no-brainer. You can buy Novo Nordisk stock for $49 per share, so with $500, you could buy 10 shares.
2. AbbVie
But if you wanted to balance that Novo Nordisk stock purchase out and use half of your available funds on a more defensive stock, consider AbbVie.
Today’s Change
(1.71%) $3.90
Current Price
$231.40
Key Data Points
Market Cap
$409B
Day’s Range
$227.85 – $234.69
52wk Range
$164.39 – $244.81
Volume
319K
Avg Vol
6.5M
Gross Margin
83.38%
Dividend Yield
2.87%
AbbVie, which was spun off of Abbott Labs in 2013, has been a great defensive stock over the years, rising some 24% during the 2022 bear market when the S&P 500 dropped 18%. It is also a fantastic dividend stock, increasing its dividend for the past 13 years since it split from Abbott. It currently has a high yield of 3.1%.
In addition, AbbVie stock has been a strong performer, averaging a 20% total annual return over the past 10 years (with the dividend reinvested).
The stock is also relatively cheap, trading at 15 times forward earnings, and it has significant growth potential with several blockbuster drugs. It seems to have made the transition from Humira, which is facing the patent cliff in 2028, to drugs like Skyrizi and Rinvoq, which saw net revenue gains of 33% and 30% in 2025, respectively.
Analysts see the stock price rising 11% over the next 12 months to $250 per share. One share of AbbVie and five or six shares of Novo Nordisk could be a solid long-term investment for $500.
