In this article, we will look at the 10 Best Healthcare Stocks to Buy with the Highest Upside Potential.
On June 1, Tom Lee, Fundstrat managing partner and head of research, and Fundstrat Capital CIO, appeared on CNBC’s ‘Squawk Box’ to talk about the latest market trends, the market outlook, and more.
He believes that although 2026 was expected to be a tough year, and is as well, there are several tailwinds, including the AI story. However, Lee was of the view that we still might face challenges between now and December, and so everyone still needs to be vigilant. Generally, he is bullish and expects market breadth to improve in June.
READ ALSO: 10 Best Stocks to Buy Now for Long Term Growth AND Top 10 Undervalued Blue Chip Stocks Analysts Recommend for Smart Investing.
Talking about the future, he thinks a couple of things are coming together, a few of which may only happen once in a lifetime. One of them is that the US economic growth rate is starting to step up, which, in other words, means that we could grow at 4%. For the world’s largest economy to start accelerating growth is “pretty astounding” to him. Lee still sees a 3-phase market in 2026 and believes that it may rise closer to 7,700. There is the possibility that the decline due to headwinds may pressure stocks in a way that feels like a bear market. Post-Midterms, he thinks we can rally strongly.
With these broader market trends in view, let’s look at the best healthcare stocks to buy with the highest upside potential.
Our Methodology
We used the Finviz stock screener to identify the best healthcare stocks that analysts are bullish on and selected the top 10 stocks most popular among hedge funds as of Q1 2026, using the hedge fund sentiment data from Insider Monkey’s database. The stocks are arranged in ascending order of analyst upside.
Note: All data was recorded on June 2.
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 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).
10 Best Healthcare Stocks to Buy with Highest Upside Potential
10. Abbott Laboratories (NYSE:ABT)
Analyst Upside: 31.01%
Abbott Laboratories (NYSE:ABT) is one of the best healthcare stocks to buy with highest upside potential. Abbott Laboratories (NYSE:ABT) announced on May 27 that it has secured CE Mark for the world’s first dual glucose‑ketone sensing technology for people with diabetes. The systems are branded as Libre Duo and Libre Duo 10 Day, and are specifically designed to make continuous measurements of glucose and ketone levels every minute. They provide real-time visibility into both glucose levels and rising ketones, which is necessary for daily diabetes management. Management stated that the technology marks the first time people with diabetes will be able to monitor ketones without traditional blood or urine tests, as rising ketones can lead to a diabetic ketoacidosis (DKA) emergency. Abbott Laboratories (NYSE:ABT) has plans to begin the launch of Libre Duo systems in select European countries later this year.
In a separate development, Abbott Laboratories (NYSE:ABT) announced on May 27 that the American Cancer Society (ACS) released updated colorectal cancer (CRC) screening guidelines that reaffirm Cologuard® and Cologuard Plus® as preferred noninvasive screening options for adults aged 45 and older who are at average risk for CRC.
Abbott Laboratories (NYSE:ABT) discovers, develops, manufactures, and sells healthcare products. The company’s operations are divided into the following segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices.
9. Danaher Corporation (NYSE:DHR)
Analyst Upside: 36.21%
Danaher Corporation (NYSE:DHR) is one of the best healthcare stocks to buy with highest upside potential. Wolfe Research downgraded Danaher Corporation (NYSE:DHR) to Peer Perform from Outperform on June 1 without assigning a price target after assuming coverage of the name. It stated that growth forward and backward is similar, and Thermo Fisher is “a little cheaper on P/E”. It added that the Masimo (MASI) transaction “confused us about DHR’s identity.”
Danaher Corporation (NYSE:DHR) also received a rating update from RBC Capital on May 14. The firm resumed coverage of the stock with an Outperform rating, setting a price target of $200. The firm told investors in a research note that it sees the company’s growth recovering with an improvement in the bioprocess market. It further added that factors like the lapping of “idiosyncratic headwinds”, a sustained bioprocess rebound, and end market improvement put the company’s 6% revenue growth target within reach for 2027.
Danaher Corporation (NYSE:DHR) designs, manufactures, and markets professional, medical, industrial, and commercial products and services, making it a significant diagnostics stock. It operates through Diagnostics, Biotechnology, Life Sciences, and Environmental and Applied Solutions.
