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 (NASDAQ:ONC). 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 (NASDAQ:ONC) 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. (NASDAQ:ALNY) 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. (NASDAQ:ALNY) 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. (NASDAQ:RYTM) 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. (NASDAQ:RYTM) 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 (NYSE:BSX) 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 (NYSE:BSX) 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 (NASDAQ:PODD) 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 (NASDAQ:PODD) 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.
While we acknowledge the potential of PODD 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 PODD and that has 100x upside potential, check out our report about the cheapest AI stock.
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