Three healthcare stocks are outpacing the S&P 500 and the so-called Magnificent Seven in 2026, yet Wall Street analysts largely remain skeptical of their near-term valuation. With less than two months left in the year, the broad market index is on pace for another double-digit gain, but only Nvidia and Apple among the Magnificent Seven are beating the market. Investors seeking higher returns have turned to Moderna, Twist Bioscience, and 10X Genomics, which have delivered exceptional gains despite recent price pullbacks.
Moderna shares have surged more than 620% so far in 2026, marking a performance that exceeds the company's gains during the 2020 and 2021 pandemic peak. The driver this time is not its COVID-19 vaccine, but intismeran autogene, a personalized messenger RNA cancer vaccine. In August 2026, Moderna and its partner Merck announced strong results from a late-stage study showing the vaccine's efficacy when combined with Merck's immunotherapy drug Keytruda for melanoma treatment. The companies are now evaluating the combination in clinical trials for lung, kidney, and bladder cancer.
Twist Bioscience has also seen significant appreciation, with its stock more than quintupling year to date. The company manufactures synthetic DNA using a silicon-based platform that increases efficiency and lowers costs compared to older methods. In August 2026, Twist reported its 14th consecutive quarter of revenue growth, with sales rising 23% year over year to $118.4 million. The firm is on track to reach adjusted EBITDA breakeven in the fourth quarter of 2026.
10X Genomics shares have jumped nearly 400% this year, a return comparable to Twist's despite slower top-line growth. The company's latest quarterly sales increased only 3% year over year. Its stock momentum is attributed to winning a patent infringement lawsuit against Parse Biosciences, a subsidiary of Qiagen. Additionally, 10X launched Atera, a tool for profiling gene activity at the single-cell level across larger tissue areas, and Sentira, which reduces spatial data processing times from hours to minutes.
Despite these strong stock performances, analyst sentiment is mixed. The consensus 12-month price target for Moderna is roughly 49% below its current share price, with only three of 20 analysts recommending a buy in the last three months. For Twist Bioscience, the average price target sits 11% below the current price, though eight of 11 analysts still rate it a buy. For 10X Genomics, the consensus target is about 16% below the current share price, with seven of 16 analysts recommending a buy and nine suggesting a hold.
While the source suggests analysts may be correct that these stocks could slide over the next 12 months, it notes that significant sell-offs could present buying opportunities for long-term investors.