In this article, we will be taking a look at the 10 Best Healthcare Stocks to Buy According to Wall Street Analysts.
The U.S. healthcare sector has significantly lagged the broader market for three consecutive years, returning just 0.3% in 2023, 0.9% in 2024, and 12.5% in 2025. The trend has continued in 2026, with the sector down 1.62% year-to-date compared to the S&P 500’s 10.35% gain.
Many Wall Street analysts attribute this prolonged weakness to investors’ overwhelming focus on artificial intelligence. In a May 18 article, Gareth Powell, Head of Healthcare at Polar Capital, argued that enthusiasm for AI has diverted capital away from traditionally defensive sectors such as healthcare. Echoing that view, UBS Managing Director and Senior Portfolio Manager Michael Zinn said during a June 8 appearance on BNN Bloomberg that the market’s 2026 rally has largely been a “catch-up trade” driven by rising expectations for AI infrastructure earnings, leaving healthcare behind.
The sector’s underperformance has also created a valuation opportunity. Speaking to CNBC on June 7, Mizuho Americas healthcare strategist Jared Holz described healthcare as a value sector, noting that years of heavy investment in technology and AI-related stocks have left healthcare companies trading at more reasonable valuations and facing lower investor expectations. Similarly, SentimenTrader’s Jay Kaeppel argued that healthcare’s unusually weak performance relative to the S&P 500 could signal stronger returns ahead.
While healthcare struggles to regain investor attention, broader market sentiment remains constructive. During a June 1 appearance on CNBC’s “Squawk Box,” Fundstrat’s Tom Lee highlighted several tailwinds supporting equities, including the continued AI boom. Although he expects market volatility and potential headwinds through December, Lee remains bullish, citing improving market breadth, the possibility of U.S. economic growth accelerating toward 4%, and a three-phase market cycle that could push the S&P 500 closer to 7,700 before a stronger rally emerges after the midterm elections.
With that said, now let’s take a look at the best healthcare stocks.
Our Methodology
For our methodology, we screened for healthcare stocks with a price target upside of at least 20%. From this list, we selected the 10 best stocks based on their recent news and developments and ranked them in ascending order based on their analyst upside as of June 21.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Here is our list of the 10 best healthcare stocks to buy according to Wall Street analysts.
10. Elanco Animal Health Incorporated (NYSE:ELAN)
Price Target Upside: 25.52%
Elanco Animal Health Incorporated (NYSE:ELAN) is among the best healthcare stocks.
TheFly reported on June 18 that TD Cowen analyst Steve Scala increased the price target on ELAN to $32 from $31 while maintaining a Buy rating on the shares. The firm highlighted seven potential blockbuster product launches as important drivers for future revenue growth and margin improvement. TD Cowen noted that these upcoming launches, combined with ELAN’s diversified portfolio and leading position in pet retail, could support long-term growth, including projected revenue expansion of more than 5% and earnings per share growth of approximately 10% through 2032.
Furthering its commitment to long-term category leadership, on June 18, Elanco Animal Health Incorporated (NYSE:ELAN) announced plans to launch Elanco Ventures, a corporate venture capital initiative focused on supporting and investing in innovation within the animal health industry. The platform will receive a $25 million multi-year commitment and will target early-stage companies developing therapeutic solutions and enabling technologies. While centered on animal health, Elanco Ventures may also consider opportunities within the broader One Health sector. The fund is expected to begin operations in late 2026 and will focus on Pre-Seed, Seed, and Series A-stage companies under the leadership of Eric Steager.
Elanco Animal Health Incorporated (NYSE:ELAN) is a global animal health company providing therapeutics, vaccines, and disease prevention products for pets and farm animals across more than 90 countries.
9. Agilent Technologies, Inc. (NYSE:A)
Price Target Upside: 25.70%
Agilent Technologies, Inc. (NYSE:A) is among the best healthcare stocks.
TheFly reported on June 11 that Piper Sandler began coverage of A with a Neutral rating and established a $150.00 price target. The firm initiated coverage of the life science tools sector, noting that it prefers to wait for clearer signs of future growth drivers before becoming more positive on additional companies in the space. Piper Sandler highlighted that challenges related to biotech and academic spending, along with China-related exposure, could improve in the near term.
Separately, on June 3, Agilent Technologies, Inc. (NYSE:A) announced a strategic collaboration with OpenAI and Boston Consulting Group (BCG) to expand the use of artificial intelligence across its business operations, product development, and customer solutions. The partnership aims to strengthen the business’s AI capabilities by improving the integration of advanced technologies into its instruments, software, and services.
Through this collaboration, the corporation plans to accelerate AI adoption throughout the company while enhancing its ability to deliver faster and more accurate insights for customers. The initiative reflects Agilent’s focus on building long-term AI-driven capabilities and creating new opportunities to improve decision-making and innovation across its global operations.
Agilent Technologies, Inc. (NYSE:A) is a global leader in life sciences, diagnostics, and analytical solutions, providing instruments, software, and services to customers worldwide across healthcare, research, and chemical markets.
8. Haleon plc (NYSE:HLN)
Price Target Upside: 26.79%
Haleon plc (NYSE:HLN) is among the best healthcare stocks.
TheFly reported on June 16 that Rothschild & Co Redburn analyst Edward Lewis lowered his rating on HLN from Buy to Neutral and assigned a price target of 365 GBp.
In other news, earlier this month, on June 8, Haleon plc (NYSE:HLN) announced plans to invest approximately GBP 175 million (~$233 million) to expand its presence in India, a key growth market for the company. The investment will support the development of a new oral health manufacturing facility in Madhya Pradesh, along with efforts to strengthen distribution networks in rural areas. The new facility is expected to enhance HLN’s supply capabilities across Asia while improving operational flexibility and resilience.
The initiative is part of HLN’s broader strategy to increase access to its consumer healthcare products and reach more consumers globally by 2030. India represents a significant market for HLN’s oral health portfolio, and the company plans to expand the availability of brands such as Sensodyne and Parodontax through wider retail coverage. The investment aligns with the corporation’s long-term growth strategy by improving supply chain capabilities and responding to increasing demand for preventive healthcare solutions.
Haleon plc (NYSE:HLN) is a global consumer healthcare company offering over-the-counter medicines, vitamins, and oral care products across more than 170 markets.
7. GE HealthCare Technologies Inc. (NASDAQ:GEHC)
Price Target Upside: 31.93%
GE HealthCare Technologies Inc. (NASDAQ:GEHC) is among the best healthcare stocks.
TheFly reported on June 9 that GEHC continued to expand its enterprise imaging initiatives by highlighting its latest imaging solutions at the Society for Imaging Informatics in Medicine 2026 Annual Meeting in Pittsburgh, PA. The company is advancing its imaging platform through Genesis Radiology Workspace, while Intelerad, a GEHC, is presenting its cloud-based offerings, including InteleShare.
Separately, it was reported earlier on June 1 that GE HealthCare Technologies Inc. (NASDAQ:GEHC) is addressing the growing operational demands created by the expanding use of theranostics and rising radiopharmaceutical utilization. As healthcare providers work to increase nuclear medicine capacity while maintaining efficiency and diagnostic accuracy, the company is advancing technologies designed to support these evolving needs. At the 2026 Society of Nuclear Medicine and Molecular Imaging Annual Meeting, the company highlighted its latest imaging innovations and artificial intelligence-driven workflow solutions aimed at strengthening precision medicine across multiple stages of patient care.
The firm’s efforts are focused on helping healthcare organizations improve productivity, broaden access to advanced diagnostic services, and enhance clinical decision-making. By combining imaging technologies with workflow optimization tools, GEHC seeks to support the continued transition of nuclear medicine from emerging applications to broader clinical adoption, positioning healthcare systems to manage increasing demand while delivering more personalized and data-informed care.
GE HealthCare Technologies Inc. (NASDAQ:GEHC) is a global medical technology and pharmaceutical diagnostics company providing healthcare solutions across imaging, diagnostics, and patient care in more than 160 countries.
6. Mirum Pharmaceuticals, Inc. (NASDAQ:MIRM)
Price Target Upside: 34.55%
Mirum Pharmaceuticals, Inc. (NASDAQ:MIRM) is among the best healthcare stocks.
TheFly reported on June 15 that Citizens reiterated its positive stance on MIRM, increasing its price objective to $146 from $140. The firm pointed to the growing potential of Mirum’s recently acquired zilurgisertib program, citing updated findings that demonstrated encouraging clinical activity in fibrodysplasia ossificans progressiva (FOP). Although the Phase 2b study did not achieve its primary goal, the additional data strengthened the view that the therapy could still advance toward regulatory approval. Citizens also highlighted the asset’s commercial prospects and noted that its integration with Mirum’s existing operations could support a relatively rapid contribution to the company’s business.
Separately, on June 11, Mirum Pharmaceuticals, Inc. (NASDAQ:MIRM) announced that its Compensation Committee approved inducement awards on June 10, 2026, for eight newly hired employees under the company’s 2020 Inducement Plan. The grants included non-qualified stock options covering 10,100 shares of common stock and 13,350 restricted stock units (RSUs), issued in accordance with Nasdaq Listing Rule 5635(c)(4) as part of the employees’ hiring incentives. The stock options were granted at an exercise price of $94.00 per share, matching the company’s closing stock price on the grant date, and will vest over four years. The RSUs will vest over three years, with both awards remaining subject to continued employment and the terms of the applicable award agreements.
Mirum Pharmaceuticals, Inc. (NASDAQ:MIRM) is a commercial-stage biopharmaceutical company developing therapies for rare diseases, with a focus on liver and metabolic disorders caused by bile acid dysfunction.
While we acknowledge the potential of MIRM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MIRM and that has 100x upside potential, check out our report about the cheapest AI stock.
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