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.
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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 (NYSE: NVO) and AbbVie (NYSE: ABBV).
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.
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.
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.
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%.
