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.
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. (NASDAQ:ROIV) 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. (NASDAQ:ROIV) 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. (NASDAQ:ROIV) 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. (NYSE:HCA) 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. (NYSE:HCA) 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 (NASDAQ:BNTX) to Buy from Neutral on May 27, lifting the price target on the stock to $135 from $117.
While we acknowledge the potential of BNTX 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 BNTX and that has 100x upside potential, check out our report about the cheapest AI stock.
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