We recently published a list of Why These 15 Healthcare Stocks Are Surging in 2025. In this article, we are going to take a look at where Journey Medical Corporation (NASDAQ:DERM) stands against other healthcare stocks that are surging in 2025.

After lagging behind the broader market in 2024, many healthcare stocks are making a comeback this year. Healthcare spending has been continuously soaring and is projected to do so in the coming years due to demographic tailwinds. The industry now accounts for a fifth of the U.S. economy, and it’s a good idea to have exposure to it.

Most executives now hold a favorable view of the industry’s prospects, a notable increase from 52% just a year ago. Moreover, it’s an industry that is more insulated from tariffs and macro risks.

Of course, the top gainers here are not defensive healthcare stocks, but it’s still worth looking into the winners here if you are chasing potential multibaggers.

Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified 15 Energy Stocks that are Up the Most in 2025 in another article.

Methodology

For this article, I screened the best-performing healthcare stocks year-to-date.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).Why Journey Medical Corp (DERM) is Surging in 2025

A laboratory scene, showing a scientist holding a beaker and examining its contents.

Journey Medical Corporation (NASDAQ:DERM)

Number of Hedge Fund Holders In Q4 2024: 3

Journey Medical Corporation (NASDAQ:DERM) is a commercial-stage pharmaceutical company that identifies, acquires, and commercializes innovative dermatology products.

The most significant driver of the stock’s surge in 2025 has been the U.S. Food and Drug Administration approval and commercial launch of Emrosi, a 40 mg minocycline hydrochloride modified-release capsule for the treatment of rosacea.

The FDA approved Emrosi in November 2024, ahead of the scheduled PDUFA date, and the company began initial distribution with the first prescriptions filled shortly after. Full-scale promotion of Emrosi started in April 2025, and the Phase 3 clinical trial results, published in JAMA Dermatology in March, demonstrated a best-in-class safety and efficacy profile with all endpoints met and no significant safety issues.

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Investors responded positively to Emrosi’s commercial rollout and the company’s strong financial performance, which included meeting all 2024 guidance and reporting $56.1 million in revenue for the year.

The consensus price target of $9.88 implies 32.2% upside.

Journey Medical Corporation (NASDAQ:DERM) stock is up 91.05% year-to-date.

Overall, DERM ranks 15th on our list of healthcare stocks that are surging in 2025. While we acknowledge the potential of DERM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DERM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

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