In this article, we will take a look at the 11 Best Medical Stocks to Buy According to Analysts.
The medical and healthcare sector encompasses a broad spectrum of companies, including pharmaceuticals, producers of medical devices and equipment, insurance providers, and other medical providers.
As macroeconomic headwinds, regulatory reforms, and geopolitical concerns converge in the second half of 2025, PwC predicts that the health industry’s resilience and adaptability will be put to the test. In response to the Trump administration’s recent tariff escalation, medical companies have made strategic evaluations a top priority.
These valuations are also being impacted by the possible revocation of long-standing duty-free treatment for medical and life sciences products, as well as the effects of unexpected tariffs on imported medications. The firm estimates that these new measures could raise the sector’s annual tariffs from $0.5 billion to $63 billion.
According to a recent assessment by federal actuaries, national health spending is expected to rise by 7.1% in 2025, surpassing the growth of the U.S. GDP. The Centers for Medicare & Medicaid Services Office of the Actuary’s annual look at spending forecasts, which was released back in June, notes that healthcare spending is expected to rise by an average of 5.6% between 2026 and 2027, driven by an anticipated reduction in the number of individuals with insurance.
Our Methodology
For this list, we used screeners to identify medical stocks with high upside potential. These stocks are ranked in ascending order based on their average share price upside potential, as of July 31. Additionally, we have mentioned the hedge fund sentiment around each stock, as of Q1 2025.
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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11. Thermo Fisher Scientific Inc. (NYSE:TMO)
Analyst Upside: 17.92%
Number of Hedge Fund Holders: 101
Thermo Fisher Scientific Inc. (NYSE:TMO) ranks among the best medical stocks to buy according to analysts. On July 25, Stifel maintained its Buy rating on Thermo Fisher Scientific Inc. (NYSE:TMO) but reduced its price target from $620 to $583. The firm’s move comes after Thermo Fisher’s second-quarter results, which Stifel called “strong” despite “above-average skittishness by Thermo standards.”
Stifel praised Thermo Fisher’s performance “in a tough environment” as being “on point,” noting that the company’s management had addressed the company’s mid- to long-term growth issues, which had turned into “a meaningful sticking point for investors looking to own the stock.”
The firm acknowledged that the market environment is still “plenty choppy”, though it added that the company’s July 25 price movement possibly included “a squeeze/covering element.” According to Stifel, the reorganization of the quarterly performance and outlook could result in “a constructive conversation that has been absent for several months.”
One of the top biotech and life sciences companies in the United States, Thermo Fisher Scientific Inc. (NYSE:TMO) offers a broad range of products and services. The company has grown significantly since its founding, mostly as a result of a number of well-timed acquisitions, such as those of Affymetrix and Life Technologies.
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