With the healthcare sector poised to grow significantly in the coming years, healthcare stocks to buy present a fantastic opportunity for investors. Healthcare is something that everyone will need at some point in their lives, so today’s industry of $8.3 trillion spent globally is an indication of a growing, profitable sector – one that could create many opportunities for those looking to make significant investments. The U.S. alone accounts for almost half of the total healthcare expenditure, which is set to grow at an incredible pace in the coming decade. Therefore, healthcare stocks to buy are set for substantial progress ahead, with the population of individuals over 65 expected to rise by 113% from 2019 to 2050.

Healthcare stocks have seen a huge rally in 2022, and even though there have been multiple negative macro factors that influence markets, companies with specific catalysts have managed to gain immensely. Moreover, there is still time to add these plays to your portfolio and benefit from their strong potential. The following seven healthcare stocks are likely to benefit the most:

Verona Pharmaceuticals (VRNA)

Verona Pharmaceuticals (NASDAQ:VRNA) is a fascinating long-term play in the healthcare sector. Its stock rallied after its Phase III COPD trial proved to be effective. Study results showed that it could significantly increase patients’ lung function, reduce symptoms and improve life quality – remarkable improvements that could change the lives of those affected by the severe condition.

Moreover, the study showed that the treatment significantly decreased the number of times a patient’s symptoms deteriorated and were well-tolerated. In light of these promising developments, Verona expressed plans to seek FDA approval for its novel treatment in the first half of 2023. With over 12 million people affected by COPD in the U.S. alone, the firm’s long-term position looks mighty encouraging. Thus, it is among the top healthcare stocks to buy.

Inspire Medical Systems (INSP)

Inspire Medical Systems (NYSE:INSP) is revolutionizing how we treat moderate to severe Obstructive Sleep Apnea (OSA). Its patented Inspire system provides a safe, effective, and non-invasive treatment designed to keep airways open while patients sleep. The advanced implantable nerve stimulator offers a cutting-edge alternative to traditional continuous positive airway pressure (CPAP) therapies. Inspire Medical Systems provides an invaluable service for those who suffer from OSA.

It boasts an excellent track record marked by double-digit expansion in sales over the past five years. Additionally, its gross profit margins are off the charts, which should propel the firm toward profitability in the not-so-distant future. Also, its massive cash balance of over $420 million comfortably dwarfs its debt balance of just $9.1 million.

Schrodinger (SDGR)

Schrodinger (NASDAQ:SDGR) is a developer of artificial intelligence technology used to aid pharmaceutical firms in improving the drug discovery process. So far, the company has gained impressive traction from its growing customer base each quarter. With its technology being leveraged by industry leaders, Schrodinger looks set to remain ahead of the competition for many years.

Its third-quarter results showed drug discovery revenue jumping 121% from the prior-year period to $12.3 million. The company expects its 2022 drug discovery revenue to soar between 82% and 94%. Moreover, it expects its software sales to grow 8% to 12% this year.

The outlook for software growth may reflect some trepidation among organizations. Still, the success of Schrodinger’s drug discovery model is a testament to how effective this kind of technology can be in advancing research. With such remarkable returns already derived from Schrodinger’s technology, it seems that software growth could very well take off in the near future.

Incyte (INCY)

Incyte (NASDAQ:INCY) is a successful biotechnology company generating billions in annual revenue. Its flagship product Jakafi has revolutionized treatment for myelofibrosis and polycythemia vera, and its pervasive influence on the market is apparent. It constitutes more than 80% of the company sales at this time, but its non-segmental vitiligo treatment Opzelura could be a major contributor to the top line.

Opzelura sales doubled last quarter and will likely continue growing in the upcoming quarters. In addition, several potential blockbuster treatments in its pipeline could also put them ahead of the curve in the not-so-distant future. With an excellent track record of growing its sales and earnings and a relatively cheap valuation, INCY stock is an excellent bet for 2023.

Viatris (VTRS)

Viatris (NASDAQ:VTRS) is back on the investor radar of late. Though its sluggish revenue growth and debt load are concerning, its investors are attracted to its expansive generic portfolio and potential new market opportunities. This culminates in a bright future for the pharmaceutical company if they stick to the correct growth strategy.

Its management has been stabilizing its business, creating synergies, and looking to pay down its hefty debt load. So far, its executed remarkably well, and its strategic plans are quickly advancing toward the growth stage again. For investors, these developments could effectively result in higher returns through share-price appreciation coupled with a dividend yield of 4.4%. Its upcoming acquisitions of Oyster Point Pharma and Famy Life Sciences are a testament to that notion. The acquisition signals that the company is well on its way to an incredible future for shareholders.

Veeva Systems (VEEV)

Veeva Systems (NYSE:VEEV) has established itself as a top cloud-based software provider to the fast-growing life sciences industry. Revenue and earnings growth for the company looks promising in the years based on its rock-solid performances in recent years. Unlike many of its peers, Veeva has been consistently profitable, which means that its stock should thrive even in the less than ideal economic times.

It has become the go-to software for 19 of the top 20 biggest pharma companies. It operates in over a $2 trillion life sciences industry, and its expansion into related verticals continues to grow its total addressable market. Moreover, with long-term relationships with leading pharma companies, the firm is in a strong position to capitalize on the increase in its market share and customers over time.

Madrigal (MDGL)

Madrigal (NASDAQ:MDGL) is developing a drug called Rensifentrine that offers hope to patients with nonalcoholic steatohepatitis, or NASH – a condition that causes extensive inflammation and damage to the liver and carries with it a risk of fatality. There is currently no cure for the disease, which makes it a first-mover in the space.

Madrigal has demonstrated the safety and efficacy of its drug and is looking towards getting greenlit by the FDA. Its latest breakthrough in treating NASH patients looks incredibly promising. In its phase three trial, a high dose of rensifentrine showed that it could help cure up to 30% of the subjects. According to Goldman Sachs, there is a 90% chance of success for Madrigal’s NASH treatment which points to a strong upside potential ahead for the firm. Thus, MDGL is one of the best healthcare stocks to buy for 2023.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.