Healthcare stocks just hit all time highs while AI related shares and oil markets took a breather, a mix that has pushed many investors to reassess where risk and resilience might sit in their portfolio. With Alphabet pushing deeper into AI and other tech giants struggling to convert AI headlines into share price gains, attention has turned to sectors tied more closely to long term medical needs. This article looks at three large healthcare stocks from our screener that appear closely exposed to the latest news and explains how each could potentially benefit or face fresh questions in the current market setting.

Karuna Therapeutics (KRTX)

Overview: Karuna Therapeutics is a Boston based clinical stage biopharmaceutical company focused on developing medicines for psychiatric and neurological conditions. The company is led by its KarXT program targeting schizophrenia, dementia related psychosis such as in Alzheimer's disease, and other central nervous system disorders. It also has earlier stage muscarinic and TRPC4/5 assets for depressive disorders.

Operations: Karuna Therapeutics currently reports around US$0.7m in revenue, all from research and development of therapies in the United States.

Market Cap: US$12.6b

Healthcare stocks are back in focus and Karuna Therapeutics is notable because it offers pure exposure to central nervous system drug development at a time when some investors are looking for healthcare driven growth rather than AI headlines. The company has reported positive Phase 2 data for its lead drug candidate KarXT, and recent regulatory updates and collaborations indicate that the clinical program remains active. However, revenue is minimal and the business is loss making, with a funding structure that relies entirely on higher risk external capital. The valuation appears well below one estimate of fair value, yet the company also has a relatively high P/B multiple and a history of dilution. This raises the question of whether the pipeline and forecast growth are sufficient to offset the risks associated with this stock.

Karuna Therapeutics sits at the crossroads of minimal current revenue and big expectations. The real story sits in the 2 key rewards and 3 important warning signs (1 is major!) that could explain what the market might be missing.

Alnylam Pharmaceuticals (ALNY)

Overview: Alnylam Pharmaceuticals develops and commercializes RNA interference based medicines that switch off disease causing genes, with approved therapies for rare conditions such as hereditary and acquired amyloidosis, acute hepatic porphyria, primary hyperoxaluria type 1, hypercholesterolemia and hemophilia, and a broad pipeline targeting hypertension, metabolic disease, neurodegeneration and other serious disorders.

Operations: Alnylam generates about US$4.3b in revenue from discovering, developing, manufacturing and commercializing RNAi therapeutics, with sales spread across the United States, Europe and the rest of the world.

Market Cap: US$38.9b

Alnylam Pharmaceuticals is positioned at the intersection of healthcare strength and cutting edge drug discovery, but with a business model very different from the hyped AI stocks that recently declined in value. The company already sells multiple RNAi drugs and reported around US$1.2b in Q1 2026 revenue with solid profitability. It is also signing large AI enabled discovery deals and expanding commercial reach into new markets. At the same time, heavy dependence on its TTR franchise, high R&D spending and rich valuation expectations mean execution and pricing risks are important. The tension between strong fundamentals and these pressure points is a key factor for investors evaluating Alnylam as they assess durable healthcare opportunities relative to the latest AI driven volatility.

Alnylam Pharmaceuticals sits at the intersection of gene silencing, established products and AI discovery deals. The real tension is how the current price reflects that story. See the analysis report for Alnylam Pharmaceuticals to understand what the market may be missing.

Insmed (INSM)

Overview: Insmed is a Bridgewater, New Jersey based biopharmaceutical company that develops and sells therapies for serious and rare diseases, including lung infections, bronchiectasis, pulmonary hypertension and neuromuscular and neurodegenerative conditions.

Operations: Insmed generates about US$819.6m in revenue from therapies for patients with rare diseases, with roughly US$658.7m from the United States and US$160.8m from international markets.

Market Cap: US$22.4b

Insmed stands out in the current healthcare rally because it is already generating several hundred million dollars of rare disease revenue while pursuing larger opportunities in bronchiectasis, pulmonary hypertension and gene therapy. At the same time, the company remains loss making with a high P/S multiple, heavy reliance on external funding and recent insider selling, so expectations around future products carry real execution risk. The collaboration with Google Cloud on generative AI to speed drug discovery, plus large real world studies for brensocatib and new respiratory leadership hires, indicate that management is aiming to turn today’s high spend into tomorrow’s broader respiratory and gene therapy portfolio. The real question is how that gap between ambitious pipeline, current losses and valuation is closing.

Insmed’s mix of rare disease revenue, high spend and big respiratory ambitions hints at a story the market may not have fully priced, and the analyst forecasts for Insmed highlights one potential twist investors often overlook.

The three healthcare stocks covered here are only a starting point, as the full Healthcare Stocks screener surfaces 22 more companies with equally compelling stories tied to long term medical demand and demographic trends. Use Simply Wall St to identify, filter and analyze the specific catalysts and narratives that matter to you so you can focus on the highest conviction healthcare ideas.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.