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 has plans to begin the launch of Libre Duo systems in select European countries later this year.
In a separate development, Abbott Laboratories 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 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 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 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.
8. Roivant Sciences Ltd. (NASDAQ:ROIV)
Analyst Upside: 37.50%
Roivant Sciences Ltd. (NASDAQ:ROIV) is one of the best healthcare stocks to buy with highest upside potential. Guggenheim lifted the price target on Roivant Sciences Ltd. (NASDAQ:ROIV) to $36 from $30 on May 26 and maintained a Buy rating on the shares, updating its model after the recent fiscal Q4 earnings and pipeline updates. The stock also received a rating update from Citi on May 21. The firm lifted the price target on Roivant Sciences Ltd. to $42 from $35 and maintained a Buy rating on the shares. Citi stated that it sees further share upside on the company’s second half of 2026 data catalysts, and the stock remains a top pick at the firm following the IMVT-1402 data.
In its financial results for fiscal Q4 and full year ended March 31, 2026, Roivant Sciences Ltd. reported that it has consolidated cash, cash equivalents, and marketable securities of $4.3 billion. It further stated that research and development expenses rose by $53.7 million to $198.9 million for the three months ended March 31, 2026, compared to $145.2 million for the three months ended March 31, 2025.
Roivant Sciences Ltd. is involved in the biopharmaceutical business and engages in the development of transformative medicine. The company’s product portfolio includes Vtama, Batoclimab, Brepocitinib, Namilumab, and RVT-2001, which aim to treat psoriasis, thyroid eye disease, atopic dermatitis, and other illnesses.
7. HCA Healthcare, Inc. (NYSE:HCA)
Analyst Upside: 38.83%
HCA Healthcare, Inc. (NYSE:HCA) is one of the best healthcare stocks to buy with highest upside potential. HCA Healthcare, Inc. (NYSE:HCA) and The College of Health Care Professions announced on May 27 an agreement for HCA Healthcare to acquire ownership of CHCP. CHCP provides healthcare education to more than 8,000 students per year, across 10 campuses throughout Texas and online. Management stated that the agreement highlights a shared commitment to academic quality, student success, and workforce readiness. HCA Healthcare and CHCP have been partnering for decades, primarily through clinical sites, program advisory boards, and career placement.
For additional reference, in its financial results for fiscal Q1 2026, HCA Healthcare, Inc. reported that revenues rose 4.3% to $19.109 billion. Net income attributable to the company increased 0.6% to $1.620 billion, while diluted earnings per share and diluted earnings per share, as adjusted, increased 10.9 percent to $7.15 per diluted share. The company also reported that cash flows from operating activities grew 22.0% to $2.014 billion.
HCA Healthcare, Inc. is a health services company involved in operating hospitals, urgent care facilities, freestanding surgery centers, emergency care facilities, walk-in clinics, diagnostic and imaging centers, comprehensive rehabilitation and physical therapy centers, radiation and oncology therapy centers, and several more. The company operates general and acute care hospitals that offer medical and surgical services.
6. BioNTech SE (NASDAQ:BNTX)
Analyst Upside: 42.32%
BioNTech SE (NASDAQ:BNTX) is one of the best healthcare stocks to buy with highest upside potential. BioNTech SE (NASDAQ:BNTX) and Bristol Myers Squibb Company announced on May 30 interim Phase 2 data from the global Phase 2/3 ROSETTA Lung-02 clinical trial evaluating the investigational PD-L1xVEGF-A bispecific immunomodulator pumitamig plus chemotherapy in patients with previously untreated advanced non-small cell lung cancer.
The company reported that the data showed “encouraging anti-tumor activity, with high response rates observed in both non-squamous and squamous NSCLC and at each PD-L1 expression level”. Solange Peters, M.D., Ph.D., Lead Investigator and Director of Oncology at the University Hospital of Lausanne, Switzerland, stated that they are “encouraged by the efficacy signal with this bispecific approach, showing robust responses across subtypes and PD-L1 levels, supporting the continued investigation of pumitamig and its potential to deliver improved outcomes for a broad range of patients with NSCLC.”
In a separate development, UBS upgraded BioNTech SE to Buy from Neutral on May 27, lifting the price target on the stock to $135 from $117.
5. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Analyst Upside: 42.76%
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is one of the best healthcare stocks to buy with highest upside potential. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) announced on May 28 that maftivimab has been recommended by the World Health Organization’s (WHO) Therapeutics Advisory Group to be prioritized for evaluation in clinical trials of investigational treatments for Bundibugyo ebolavirus. Maftivimab is the most potent neutralizing antibody included in Inmazeb®, according to the company, and has exhibited broad activity in vitro against multiple Ebola species, including Bundibugyo.
Management further reported that the trial relates to the recent declaration by the WHO that the current outbreak of Ebola disease caused by Bundibugyo virus in Uganda and the Democratic Republic of the Congo (DRC) constitutes a public health emergency of international concern.
In another development, Canaccord cut the price target on Regeneron Pharmaceuticals, Inc. to $875 from $1,057 on May 19, maintaining a Buy rating on the shares. The firm updated its model on the stock after its Phase 3 study of fianlimab+cemiplimab vs pembrolizumab failed to hit statistical significance on the primary endpoint of progression-free survival (PFS), which it considered a surprising and disappointing event.
Regeneron Pharmaceuticals, Inc. is a pharmaceutical company that develops, discovers, and commercializes therapies for several diseases, including cancer, eye disorders, and allergic conditions.
4. Medtronic plc (NYSE:MDT)
Analyst Upside: 45.99%
Medtronic plc (NYSE:MDT) is one of the best healthcare stocks to buy with highest upside potential. On May 21, Goldman Sachs reinstated coverage of Medtronic plc (NYSE:MDT) with a Neutral rating and set a $84 price target on the stock, which offers 7.5% upside potential. The firm told investors in a research note that the shares at current levels offer a balanced risk/reward, trading at a 10% discount to Medtronic’s large-cap medical technology peers. Goldman Sachs added that it wants to see improving revenue and earnings growth before recommending the shares.
In a separate development, Medtronic plc (NYSE:MDT) announced on May 20 its intention to acquire SPR Therapeutics, Inc. (SPR), which is a privately held medical technology company that holds a leading position in temporary, percutaneous peripheral nerve stimulation therapies for chronic pain management. Management stated that the transaction comprises an upfront cash payment of approximately $650 million for all the outstanding equity in SPR, and is subject to customary closing conditions and regulatory approvals.
Medtronic plc (NYSE:MDT) is a medical technology company that manufactures, distributes, and sells device-based medical services and therapies. It operates under four primary segments: Cardiovascular Portfolio, Neuroscience Portfolio, Medical Surgical Portfolio, and Diabetes Operating Unit.
3. Medline Inc. (NASDAQ:MDLN)
Analyst Upside: 48.25%
Medline Inc. (NASDAQ:MDLN) is one of the best healthcare stocks to buy with highest upside potential. Barclays cut the price target on Medline Inc. (NASDAQ:MDLN) to $45 from $50 on June 1, maintaining an Overweight rating on the shares. The firm stated that it believes factors such as inflationary pressure weighing on the margin outlook, less upside to fiscal Q1 estimates, and two secondaries have brought the company’s valuation “to a more palatable level.” According to Barclays, the stock is “poised for multiple expansion post war”, and it expects the company to “continue racking up share in the interim.”
Medline Inc. also received a rating update from Tigress Financial on May 13. The firm lifted the price target on the stock to $62 from $60 while maintaining a Buy rating on the shares. It stated that the company’s ongoing transition from a traditional medical distributor to “a data-rich, AI-enabled supply chain partner” creates “near-term noise,” but “a long-term buying opportunity.”
Medline Inc. provides medical-surgical products and supply chain solutions. The company’s operations are divided into the Medline Brand and Supply Chain Solutions segments.
2. Zoetis Inc. (NYSE:ZTS)
Analyst Upside: 50.85%
Zoetis Inc. (NYSE:ZTS) is one of the best healthcare stocks to buy with highest upside potential. Zoetis Inc. (NYSE:ZTS) received a rating update from Stifel on May 22. The firm cut the price target on the stock to $95 from $105 while maintaining a Hold rating on the shares, and told investors that the company’s revised 2026 guidance implies things improve, yet near-term competitive pressures “appear poised to intensify”.
Zoetis Inc. also received a rating update from Argus on May 27, with the firm downgrading the stock to Hold from Buy. It told investors in a research note that the company’s stock price underwent a dramatic decline of 22% in a single day. It added that further losses thereafter reflected a lack of confidence among investors regarding the company’s growth prospects.
For reference, in its financial results for fiscal Q1 2026, Zoetis Inc. reported revenue of $2.3 billion, up 3%, and net income of $601 million, or $1.42 per diluted share, flat and increasing 6%, respectively, on a reported basis. Adjusted net income for the quarter was $646 Million, or adjusted diluted EPS of $1.53.
Zoetis Inc. is a global animal health company that focuses on the discovery, development, manufacture, and commercialization of vaccines, medicines, biodevices, genetic tests, diagnostic products, and precision animal health. Its operations are divided into the United States and International segments.
1. Boston Scientific Corporation (NYSE:BSX)
Analyst Upside: 61.53%
Boston Scientific Corporation (NYSE:BSX) is one of the best healthcare stocks to buy with highest upside potential. TD Cowen cut the price target on Boston Scientific Corporation (NYSE:BSX) to $61 from $80 on May 29, maintaining a Buy rating on the shares and stating that the firm updated its model to account for the latest Watchman update and related variables. TD Cowen moved to the bottom of the company’s organic sales growth guidance for both Q2 and the full year.
Boston Scientific Corporation also received a rating update from BofA in a separate development. BofA cut the price target on Boston Scientific Corporation to $68 from $105 on May 18, reaffirming a Buy rating on the shares. The firm told investors that after having hosted 34 medtech companies last week in Las Vegas, it updated several price targets for “the new reality of medtech valuations” in a year of few product cycles, inflation kicking up post-war, ACA, and utilization worries, and “data centers over healthcare”.
Boston Scientific Corporation manufactures, develops, and markets medical devices used in interventional medical procedures. Its operations are divided into Cardiovascular and MedSurg segments. The Cardiovascular segment covers Cardiology and Peripheral Interventions, while the MedSurg segment comprises Urology, Endoscopy, and Neuromodulation.
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