Investing in hospital stocks in 2026: 7 top picks with high potential

Investing in hospital stocks is a reasonable option for investors seeking stable returns. Although 2025 showed volatility in this sector, many hospital stocks still demonstrate ongoing growth potential into 2026. Investing in hospital stocks is considered a defensive stock strategy because healthcare services are essential to society and the economy at all levels. As long as there is demand for medical services, hospital stocks have the potential to generate consistent income.

Overview of the Hospital Stock Market in 2026

Last year, the hospital stock market experienced significant declines. However, leading hospital stocks proved their ability to maintain patient bases and revenue even in challenging market conditions. Several factors support the expectation that hospital stocks will rebound positively in 2026, such as growth in medical tourism, expansion of service areas, and government health policies.

7 Hospital Stocks Worth Including in Your Portfolio

1. BDMS – Market Leader in Large Hospital Stocks

Bangkok Dusit Medical Services (BDMS) has established itself as a leader in Thailand’s hospital sector by managing high-quality hospitals like Bumrungrad and regional healthcare facilities, with plans to expand internationally in Myanmar and Mongolia.

Financial Data:

• Market Cap: 319,430 million THB
• Current Price: 20.00 THB
• Net Profit in 2025: 16,100 – 16,300 million THB
• ROE: 16.8%
• P/E: 19.5x

BDMS has a clear strategic plan to increase beds, develop specialized medical centers, and target high-income foreign patients. This suggests the stock’s value could appreciate in the medium to long term.

2. BH – Focused on International Patients

Bumrungrad Hospital Public Company Limited (BH) has a high proportion of foreign patients compared to Thai patients. This enables BH to maintain a stable patient base and charge premium rates.

Financial Data:

• Market Cap: 135,060 million THB
• Current Price: 167.50 THB
• Net Profit in 2025: 7,400 million THB
• ROE: 31.9%
• P/E: 19.3x

Notably, BH’s high ROE indicates efficient use of equity capital. The company plans to adjust pricing for complex treatments and expand facilities to accommodate increasing foreign patient inflow.

3. BCH – Pioneer in Bangkok and Provincial Hospitals

Bangkok Chain Hospital (BCH) is the largest private hospital operator by market value, managing multiple hospitals in Bangkok, provinces, and neighboring countries like Laos.

Financial Data:

• Market Cap: 25,190 million THB
• Current Price: 10.20 THB
• Net Profit in 2025: 1,300 – 1,400 million THB
• ROE: 11-12%
• P/E: 19.7x

Krungsri Securities has upgraded BCH to a “Buy” recommendation, expecting net profit to grow 23% in 2026. BCH’s focus remains on serving Thai patients and social security insured clients.

4. RAM – Specialist in Surgery and Niche Diseases

Ramkhamhaeng Hospital (RAM) is known for expertise in cardiac, neurological, orthopedic, and advanced surgical treatments, located in densely populated areas.

Financial Data:

• Market Cap: 21,720 million THB
• Current Price: 18.20 THB
• 52-week Range: 16.60 – 22.90 THB
• ROE: 3.38%
• P/E: 33.41x

RAM’s strengths include a cash-paying patient base and high-margin treatments for complex conditions. Its stable long-term performance is driven by specialized services and a loyal customer base.

5. VIBHA – Focused on Domestic Patients

Vibhavadi Medical Center Public Company Limited (VIBHA) positions itself as a general hospital serving the Thai population. In 2026, VIBHA expects clear growth compared to the previous year.

Financial Data:

• Market Cap: 18,470 million THB
• Current Price: 1.88 THB
• Net Profit in 2025: 778.31 million THB
• ROE: 8.49%
• P/E: 47.6x

Yuan Ta analysts recommend a “Buy” for VIBHA, with a target price of 2.74 THB. The year 2026 is expected to be bright due to easing concerns over social security and new business expansions. Revenue from outpatient services accounts for about 45%, inpatient about 55%.

6. CHG – Efficient Management at Chularat Hospitals

Chularat Hospital Public Company Limited (CHG) operates multiple branches across Bangkok and provinces, with plans to expand beds and facilities to meet rising demand.

Financial Data:

• Market Cap: 17,270 million THB
• Current Price: 1.50 THB
• Net Profit in 2025: 20 – 40 million THB
• ROE: 10.23%
• P/E: 21.7x

CHG’s growth strategy includes opening new branches and increasing capacity, mainly serving cash-paying patients (65-70%).

7. PR9 – Ramathibodi Hospital’s Regional Healthcare Hub

Rama 9 Hospital Public Company Limited (PR9) has established itself as a modern health center trusted domestically and internationally, serving general patients and those from China, Myanmar, Laos, Cambodia, and others.

Financial Data:

• Market Cap: 14,940 million THB
• Current Price: 18.7 – 18.9 THB
• Net Profit in 2025: 520 – 560 million THB
• ROE: 14%
• P/E: 18.4x

PR9 invests in advanced medical equipment and digital platforms like 9 CARE and 9 CARE Shop to enhance patient experience. It maintains strong relationships with medical personnel and educational institutions, ensuring continuous talent acquisition.

Comparison of 7 Hospital Stocks Using Financial Metrics

Strategy for Selecting Hospital Stocks with Potential

Understand Each Stock’s Customer Base

Before investing, analyze whether each hospital targets foreign patients, Thai patients, or social security beneficiaries. For example, BDMS, BH, BCH focus on international patients, requiring monitoring of tourism and economic trends in source countries. VIBHA, CHG, PR9 mainly serve Thai and social security clients, aligned with national health policies.

Analyze P/E Ratios

A P/E below 20 generally indicates lower risk and fair valuation. BDMS, BH, BCH, PR9 have P/E ratios around 18-20, reflecting market confidence. RAM and VIBHA have higher P/E ratios, possibly indicating higher growth expectations.

Analyze ROE

ROE shows management efficiency. ROE above 15% is favorable; BH’s ROE of 31.9% is outstanding, indicating effective capital use. BDMS (16.8%) and PR9 (14%) also demonstrate solid management.

Follow Growth Plans and Business Strategies

Some hospitals pursue acquisitions (BDMS), others expand facilities (CHG, PR9), while some focus on specialized services (RAM). These strategies influence profit patterns and risk profiles.

Why Invest in Hospital Stocks?

Defensive Stocks Offering Stability

Hospital stocks are considered defensive because they are vital regardless of economic cycles. Even in downturns, well-managed hospital stocks tend to hold their value, making them a safe anchor in investment portfolios.

Steady and Sustainable Income

Hospitals generate long-term revenue from ongoing patient care and services, which tend to be more stable than cyclical businesses, due to the essential nature of healthcare.

Long-term Growth Drivers

Population growth, aging societies, emerging diseases, and medical tourism are long-term factors supporting hospital sector growth.

Final Recommendations

Investors aiming to add hospital stocks should assess their financial planning and investment goals. For steady income, stocks like BDMS, BH, BCH are suitable. For rapid growth potential, consider CHG, VIBHA, or PR9, which have lower P/E ratios and expansion plans.

Investing in hospital stocks requires careful, long-term commitment. Conduct thorough company analysis, review financials, and consult experienced analysts if needed. This approach will help make informed decisions and increase the chances of building long-term wealth through hospital stocks.