In this article, we will look at the 10 Most Promising Healthcare Stocks According to Wall Street Analysts.
The US healthcare sector has trailed the broader market for three consecutive years, returning just 0.3% in 2023, 0.9% in 2024, and 12.5% in 2025. This pattern has not changed thus far into 2026 because the sector is down 1.62% year-to-date, against the S&P 500’s 10.35% year-to-date gain.
Many voices on Wall Street believe the healthcare sector’s underperformance is down to the artificial-intelligence trade. For one, Gareth Powell, Head of Healthcare at Polar Capital, argued in a May 18 article that investor enthusiasm for artificial intelligence has drawn money away from more defensive corners of the market, which include healthcare. Michael Zinn, Managing Director and Senior Portfolio Manager at UBS, added to that voice in a June 8 appearance on BNN Bloomberg, where he described the year so far as a “catch-up trade” built on rising AI infrastructure earnings expectations. This setup, Zinn noted, has bypassed defensive sectors like healthcare almost entirely.
For Jared Holz, a healthcare strategist at Mizuho Americas, the healthcare sector is now a value sector. His reasoning is that the sector has been a laggard for the past several years majorly because many investors have spent that time concentrating heavily in tech, particularly AI-related stocks. “As those positions have grown, healthcare has increasingly become the place where valuations appear more reasonable, and expectations have fallen,” Holz told CNBC on June 7.
Because valuations for healthcare stocks look more reasonable, SentimenTrader’s Jay Kaeppel advised investors to put the sector back on the radar. Kaeppel noted that healthcare has rarely performed poorly relative to the S&P 500, and concluded that the sector’s weak showing year-to-date could mean more gains ahead.
With that backdrop in mind, this article identifies 10 healthcare stocks that Wall Street analysts currently see as the most promising.
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Our Methodology
For this list, we first used the Finviz stock screener to identify healthcare stocks with average analyst price targets 50% above their current levels as of June 16, 2026. We also detailed the number of hedge funds that hold stakes in the stocks in Q1 2026. The list is presented in ascending order of stock upside potential.
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).
Most Promising Healthcare Stocks According to Wall Street Analysts
10. BeOne Medicines AG (NASDAQ:ONC)
Stock Upside: 55.26%
Market Capitalization: $32.74 billion
Number of Hedge Fund Holders: 27
BeOne Medicines AG (NASDAQ:ONC) is one of the most promising healthcare stocks according to Wall Street analysts. On June 3, Citizens kept its Market Outperform rating and $396 price target on BeOne Medicines AG. The firm made the call after BeOne presented robust tumor clinical data at the American Society of Clinical Oncology (ASCO) 2026 conference.
Citizens said that data for three drugs in BeOne’s pipeline caught its attention. The first was BGB-43395, which BeOne is testing in a common and hard-to-treat form of breast cancer known as HR+/HER2- metastatic breast cancer. The other two are BG-C9074, an antibody-drug conjugate targeting ovarian cancer maintenance and BGB-B2033, a bispecific antibody that BeOne is evaluating in liver cancer.
Citizens noted that in its view, what makes the pipeline noteworthy is that each of these drugs is going after patient populations where current treatments are either too toxic, face resistance problems, or simply do not exist. For that reason, the firm sees BeOne at an inflection point where its tumor strategy is no longer just theoretical.
The firm said it arrived at the $396 price target through a discounted earnings and revenue multiple analysis. It added that it has confidence in BeOne funding its ambitious pipeline because the company holds $4.85 billion in cash, carries more cash than debt, and generates gross profit margins of 88%.
BeOne Medicines AG is a commercial-stage biopharmaceutical company focused on developing novel therapies for the treatment of cancer. Its pipeline includes candidates designed to address unmet needs in solid tumors and hematologic malignancies.
9. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
Stock Upside: 55.48%
Market Capitalization: $37.21 billion
Number of Hedge Fund Holders: 54
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is one of the most promising healthcare stocks according to Wall Street analysts. On June 10, GENESIS Pharma announced the expansion of its commercial partnership with Alnylam Pharmaceuticals, Inc. to cover four Nordic countries, that is, Sweden, Finland, Denmark, and Norway. GENESIS is an Athens-based biopharma company and the expanded collaboration gives it rights to commercialize Alnylam’s RNAi therapeutics for serious heart muscle diseases and rare genetic conditions across the new territory.
The two companies started to work together in 2019, and at that time, the collaboration only covered Southeast Europe. Without the four additional countries, the collaboration covers 13 markets.
RNAi, or RNA interference, is Alnylam’s proprietary technology that silences the genes responsible for producing disease-causing proteins. In short, it works by cutting off diseases at a molecular level before they fully take hold. This technology is a key part of the company’s portfolio.
The expanded relationship means that Alnylam now has four new markets for the technology. According to Norton Oliveira, Senior Vice-President and Head of Partner and Emerging Markets at Alnylam, the expansion also means that the company “can continue to address the needs of even more patients and their families.”
For Constantinos Evripides, Managing Director of GENESIS, the expanded relationship is an important push the company needed to strengthen their European footprint. “By combining Alnylam’s pioneering science with our strong regional expertise in bringing innovation closer to patients, we continue to expand our reach and enhance the value we deliver across healthcare systems,” Evripides said.
Alnylam Pharmaceuticals, Inc. is a commercial-stage biopharmaceutical company pioneering RNA interference therapeutics. It discovers, develops, and commercializes medicines that silence disease-causing genes, and it has six approved medicines.
8. Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM)
Stock Upside: 58.52%
Market Capitalization: $6.13 billion
Number of Hedge Fund Holders: 47
Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) is one of the most promising healthcare stocks according to Wall Street analysts. On June 13, Rhythm Pharmaceuticals, Inc. shared preliminary results from its ongoing Phase 2 trial of setmelanotide for Prader-Willi syndrome (PWS) at the Endocrine Society’s Annual Meeting in Chicago. The company said the data showed meaningful improvements in weight, body composition, hunger, and behavioral outcomes.
For context, PWS is a rare genetic disorder that causes a near-constant, overwhelming sense of hunger starting in early childhood. The condition leads to severe obesity and significant behavioral and emotional challenges. Currently, there are very few treatments that can meaningfully address this condition.
According to the data, patients on average saw their BMI drop by just over 3% at the six-month mark. The reductions were consistent across both adults and children. Also, setmelanotide showed meaningful improvements in the excessive hunger that defines PWS, that is, 8 out of 10 patients who entered the trial with moderate to severe hyperphagia saw their hunger scores improve significantly.
Rhythm added that the safety profile of setmelanotide in this trial was consistent with what has already been established in prior studies. The company said these results give it the confidence to move forward into a Phase 3 trial for PWS. This phase will be a larger, more rigorous study.
Rhythm Pharmaceuticals, Inc. is a commercial-stage biopharmaceutical company. It is focused on developing and commercializing therapies for rare genetic diseases of obesity.
7. Boston Scientific Corporation (NYSE:BSX)
Stock Upside: 60.39%
Market Capitalization: $69.52 billion
Number of Hedge Fund Holders: 106
Boston Scientific Corporation (NYSE:BSX) is one of the most promising healthcare stocks according to Wall Street analysts. On June 4, Truist Securities lowered its price target on Boston Scientific Corporation from $85 to $64, while keeping its Buy rating on the stock. Richard Newitter, the analyst on record, cited a growing slowdown in demand for the company’s Watchman heart device.
The Watchman is a small implant inserted into the heart to prevent blood clots from forming and traveling to the brain. In other words, the device is designed to reduce the risk of stroke in patients with non-valvular atrial fibrillation (AFib). It serves as a one-time alternative to lifelong blood thinners.
According to Newitter, the trouble began building when Boston Scientific’s Q4 2025 results showed that Watchman sales came in about 1% below analyst expectations. Then when Boston Scientific CEO Michael Mahoney spoke at Bernstein’s annual conference on May 27, he disclosed that doctors were increasingly opting to combine Watchman procedures with other cardiac treatments in a single appointment rather than scheduling them as standalone procedures. To Newitter, this shift in clinical practice is directly cutting into Watchman’s procedure volumes. Even Mahoney himself told investors to expect Watchman revenue to remain essentially flat from Q1 through Q2 and likely into Q3 2026 because of the shift.
Boston Scientific Corporation is a medical device company. It develops, manufactures, and markets a broad portfolio of technologies for interventional medical specialties, and its products include drug-eluting stents, structural heart therapies like the Watchman left atrial appendage closure device, and electrophysiology mapping and ablation systems.
6. Insulet Corporation (NASDAQ:PODD)
Stock Upside: 67.59%
Market Capitalization: $10.18 billion
Number of Hedge Fund Holders: 55
Insulet Corporation (NASDAQ:PODD) is one of the most promising healthcare stocks according to Wall Street analysts. On June 6, Insulet Corporation released new clinical results for two of its next-generation diabetes management systems, which management described as strong and that bring the company closer to making the systems a reality.
The two diabetes systems are Omnipod 6 and a fully closed-loop (FCL) system for type 2 diabetes. In the first study, dubbed STRIVE pivotal trial, the company compared the current Omnipod 5 with Omnipod 6 and found that the latter improved time in tight range by 7% for type 1 adults and by 5% for type 2 patients. Overall time in range also improved across both groups. The results also show that the new system delivered up to 50% more automated insulin.
Another key finding from STRIVE was that Omnipod 6 performed far better even when patients bolused less. The company explained that this matters because one of the biggest reasons people with diabetes don’t hit their targets is inconsistency in remembering or choosing to manually dose for meals. Omnipod 6 compensates for that gap.
The other study, dubbed EVOLUTION 3, achieved 64% time in range, which is a 12% improvement over baseline. The system also cut total daily insulin from 86 units down to 58 units with no accompanying weight gain, and 86% of participants reported being satisfied or highly satisfied with the system.
Insulet noted that both devices remain investigational and have not yet been cleared by the FDA. It added that following EVOLUTION 3, the company has already enrolled the first patients in the next trial for the FCL system, dubbed EVOLVE, and is targeting a commercial launch in 2028.
Insulet Corporation is a medical device company. It specializes in insulin delivery systems for people with diabetes and its flagship product is the Omnipod insulin management system.
5. Cogent Biosciences, Inc. (NASDAQ:COGT)
Stock Upside: 68.25%
Market Capitalization: $5.55 billion
Number of Hedge Fund Holders: 77
Cogent Biosciences, Inc. (NASDAQ:COGT) is one of the most promising healthcare stocks according to Wall Street analysts. On June 12, Cogent Biosciences, Inc. presented early-stage preclinical data for its experimental drug CGT1145 at the European Hematology Association Congress in Stockholm, Sweden. The company presented the drug candidate as a potentially more precise and better-tolerated treatment for certain rare blood cancers compared to what is currently available.
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The lab results showed that CGT1145 was more than 100-fold selective for JAK2 V617F over wild-type JAK2 and JAK1/3 isoforms. JAK2 V617F is a gene mutation associated with blood cancers like myelofibrosis, polycythemia vera, and essential thrombocythemia. Cogent designed CGT1145 which is a mutant-selective JAK2 inhibitor. Other treatments in the market can do that, but unlike CGT1145, they cause side effects like low blood counts because they hit both the mutated and normal versions of the gene.
The data also suggested that CGT1145 may be able to eliminate the cells that drive the rare blood cancers at a root level. As a result, it may have the potential to support molecular remission. The drug also showed strong oral bioavailability, meaning it absorbs well when taken as a pill. It also behaves consistently across different biological systems tested.
Because of the robust results, Andrew Robbins, Cogent’s President and CEO said that the company is on track to file an Investigational New Drug application with the FDA later this year.
Cogent Biosciences, Inc. is a clinical-stage biotechnology company focused on developing precision therapies for genetically defined cancers. Its lead candidate, bezuclastinib, is a selective tyrosine kinase inhibitor targeting KIT mutations.
4. Legend Biotech Corporation (NASDAQ:LEGN)
Stock Upside: 78.73%
Market Capitalization: $6.24 billion
Number of Hedge Fund Holders: 31
Legend Biotech Corporation (NASDAQ:LEGN) is one of the most promising healthcare stocks according to Wall Street analysts. Legend Biotech Corporation recently announced the first human proof-of-concept results for LB2501, its experimental next-generation cancer therapy. The company presented the data at the European Hematology Association 2026 Congress.
Legend said LB2501 is designed for patients with B-cell non-Hodgkin lymphoma, a blood cancer affecting white blood cells. It added that LB2501 is different from existing cell therapies because rather than removing a patient’s immune cells, engineering them in a laboratory, and reinfusing them, the treatment delivers genetic instructions directly into the patient’s body via a single intravenous infusion.
The ongoing Phase 1 trial tested two dose levels with six patients each. Data showed that at the lower dose, results were modest, but at the higher dose, all six patients responded and five of them achieved a complete response. The data also showed no serious adverse events or treatment-related deaths reported at the data cutoff, though about two-thirds of patients did experience cytokine release syndrome. This is an immune overreaction that is common with this class of therapy, the company said.
Legend also noted that the modified virus used to deliver the genetic instructions was no longer detected in circulation within 24 hours of infusion. It also left a highly diverse, polyclonal integration pattern, which in plain terms means the reprogramming happened in a broad, distributed way rather than concentrating in specific cells.
Legend Biotech Corporation is a commercial-stage cell-therapy company. It specializes in the discovery and development of novel cell therapies for oncology and other indications.
3. Insmed Incorporated (NASDAQ:INSM)
Stock Upside: 111.74%
Market Capitalization: $20.44 billion
Number of Hedge Fund Holders: 67
Insmed Incorporated (NASDAQ:INSM) is one of the most promising healthcare stocks according to Wall Street analysts. On June 10, Cantor Fitzgerald reaffirmed its Overweight rating on Insmed Incorporated and raised its price target from $230 to $235.
The firm pointed to an upcoming data release for Insmed’s experimental lung drug TPIP as a potential catalyst that investors may be underestimating. TPIP, which stands for Treprostinil Palmitil Inhalation Powder, is an inhaled therapy Insmed is developing for pulmonary arterial hypertension (PAH).
According to Cantor Fitzgerald, it has been roughly a year since Insmed first presented the Phase 2b clinical trial results for TPIP in PAH. The firm sees the next data release as a moment that could meaningfully revive investor interest in the drug. This data is a one-year open label extension update expected in Q3 2026. For context, an open label extension is the phase of a clinical study where all patients are given the actual drug and monitored over a longer period, and the data from this phase typically gives a clearer picture of how durable and safe the treatment is over time.
The firm noted that if the next data release provides robust results, the market may shift focus from Brinsupri, Insmed’s drug for non-cystic fibrosis bronchiectasis. This is because the market is significantly undervaluing TPIP just because Brinsupri posted blowout revenue at the end of Q1 2026.
Insmed Incorporated is a biopharmaceutical company. It focuses on developing and commercializing therapies for serious and rare diseases. One of its lead approved product is ARIKAYCE, an inhaled antibiotic delivered via the Lamira Nebulizer System.
2. Vaxcyte, Inc. (NASDAQ:PCVX)
Stock Upside: 123.85%
Market Capitalization: $7.09 billion
Number of Hedge Fund Holders: 57
Vaxcyte, Inc. (NASDAQ:PCVX) is one of the most promising healthcare stocks according to Wall Street analysts. On June 2, Vaxcyte, Inc. dosed the first participant in its Phase 1 first-in-human clinical trial of VAX-A1. VAX-A1 is the company’s experimental vaccine against Group A Streptococcus, or Group A Strep.
The dosing marks Vaxcyte’s entry of what would be the first-in-human vaccine candidate for Group A Strep, a disease for which no approved vaccine currently exists. For context, Vaxcyte estimates that Group A Strep is responsible for 800 million illnesses globally every year, and the illnesses range from common strep throat to severe, life-threatening infections and long-term complications like rheumatic heart disease. Despite this burden, no approved vaccine exists anywhere in the world, noted Vaxcyte.
For the trial, Vaxcyte will enroll 80 healthy adults aged 18 to 40 in Australia. The company said the choice of Australia is because the country has high rates of Group A Strep disease. It also has established research networks with deep expertise in studying it. Vaxcyte will structure the study in two stages, where Stage 1 will include 12 participants who will serve as a safety checkpoint before an independent safety board reviews results and approves the expansion to Stage 2.
All participants will receive two doses of VAX-A1 or a placebo, which will be spaced about two months apart. They will then be monitored for six months after the final dose. The trial will test low, mid, and high dose levels to find the right balance between immune response and tolerability.
Vaxcyte, Inc. is a clinical-stage biotechnology company.
1. Summit Therapeutics Inc. (NASDAQ:SMMT)
Stock Upside: 129.89%
Market Capitalization: $10.82 billion
Number of Hedge Fund Holders: 34
Summit Therapeutics Inc. (NASDAQ:SMMT) is one of the most promising healthcare stocks according to Wall Street analysts. On June 10, Summit Therapeutics Inc. withdrew a $500 million proposed underwritten public offering it had announced just one day earlier. The company cited unfavorable market conditions.
The plan was to use the proceeds to fund ongoing research and development of ivonescimab, the company’s lead drug. Ivonescimab is a bispecific antibody that simultaneously targets the two proteins on which cancer cells rely to grow and hide from the immune system. The drug is currently the most closely watched asset in Summit’s pipeline and is already approved in China.
Summit had proposed the offering just nine days after its Chinese partner Akeso presented Phase 3 data from a China-based lung cancer trial of ivonescimab. The results showed a 34% reduction in the risk of death compared to a competing therapy. However, a CNBC report raised the concern that the data may not be as useful to Summit because the trial was conducted in China.
CNBC quoted Dr. Suresh Ramalingam, executive director of the Winship Cancer Institute of Emory University, who said: “I’m mindful of the fact that this trial was done exclusively in China, and that brings up the question of how do these data apply to patient populations outside of China, and that will require future investigations.”
Dr. Ramalingam explained that their concerns are not that the drug doesn’t work. In fact, he called the results good news for Chinese patients. Instead, their concern is that one can’t assume results from a China-only trial will translate to US or global patients, especially when there are biological reasons to expect the response to be different.
Summit Therapeutics Inc. is a clinical-stage biopharmaceutical company. Its lead candidate, ivonescimab, is a novel bispecific antibody targeting both PD-1 and VEGF pathways, and is currently being evaluated in multiple Phase 3 trials for non-small cell lung cancer and other solid tumors.
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