We recently compiled a list of the Why These 15 Healthcare Stocks Are Skyrocketing So Far In 2025. In this article, we are going to take a look at where Neuronetics Inc (NASDAQ:STIM) stands against the other healthcare stocks.

The healthcare sector is staging a comeback so far in 2025 after two years of underperformance. These stocks could get even hotter due to AI. The healthcare sector was a hot topic during the Stargate project announcement, so it is likely that there are going to be even more breakthroughs here as technology advances.

The S&P 500 Healthcare Index trailed the broader market considerably in the past few years. However, it has risen 7% year-to-date so far. There are many promising drugs awaiting approvals and trials right now. As such, healthcare EBITDA is projected to grow at a 7% CAGR, reaching $987 billion by 2028.

The sector is bouncing back from post-pandemic challenges. Nearly 60% of industry leaders expressed a favorable outlook for 2025. Thus, it is worth looking at the healthcare stocks spearheading the gains.

Methodology

For this article, I screened the top-performing healthcare stocks year-to-date. Stocks that I have covered recently will be excluded from this list.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).

A lab technician gazing into a microscope, analyzing sample slides for medical technology research.

Neuronetics Inc (NASDAQ:STIM)

Number of Hedge Fund Holders In Q3 2024: 9

Neuronetics Inc (NASDAQ:STIM) has medical products that use transcranial magnetic stimulation to treat major depressive disorder and anxiety.

The stock has surged so far in 2025 due to it completing the acquisition of Greenbrook TMS. It integrated NeuroStar’s tech with Greenbrook’s network of 95+ U.S. clinics.

The company projects $22 million in annualized cost synergies with 90% already implemented. Moreover, pro forma 2024 revenue reached $129.8 million. This is up from a standalone $74.5 million, and it has 2025 revenue guidance at $145 million to $155 million.

The consensus price target of $4.67 implies 44.03% upside.

STIM stock is up 99.9% year-to-date.

Overall STIM ranks 7th on our list of the healthcare stocks that are skyrocketing so far in 2025. While we acknowledge the potential of STIM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than STIM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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Disclosure: None. This article was originally published at Insider Monkey.