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.
10. Boston Scientific Corporation (NYSE:BSX)
Analyst Upside: 19.14%
Number of Hedge Fund Holders: 108
Boston Scientific Corporation (NYSE:BSX) ranks among the best medical stocks to buy according to analysts. On July 25, Truist Securities maintained its Buy rating on Boston Scientific Corporation (NYSE:BSX) while increasing its price target from $120 to $125. The price target upgrade comes after what Truist calls a “strong quarter with multiple tailwinds supporting higher estimates.”
The firm noted that Boston Scientific Corporation (NYSE:BSX) produced a broad-based earnings beat, with its PFA and accelerated Watchman growth divisions showing excellent results. According to Truist, challenges in the TAVR (Transcatheter Aortic Valve Replacement) market should be more than compensated by Boston Scientific’s quarterly results, sustained momentum, and improved tariff outlook.
In the second half of 2025, the firm expects “beat and raises” and stated confidence that Boston Scientific Corporation (NYSE:BSX) can continue to produce upside to its now-higher estimate.
Boston Scientific Corporation (NYSE:BSX) is a global leader in the manufacture of medical devices, including stents, brain stimulation systems, heart monitors, and catheters.
9. Solventum Corporation (NYSE:SOLV)
Analyst Upside: 23.32%
Number of Hedge Fund Holders: 38
On July 15, Morgan Stanley upgraded Solventum Corporation (NYSE:SOLV) from Equalweight to Overweight, assigning a price target of $103 for the company’s shares. The upgrade came as Morgan Stanley believes that Solventum Corporation (NYSE:SOLV) can “drive material value over the coming years” after the company’s debt reduction and sale of its P&F segment.
According to the firm, Solventum Corporation (NYSE:SOLV) can improve organic growth to about 4% and solve cost inefficiencies. In a bull market, this may result in earnings per share of almost $9 by 2028. Additionally, Morgan Stanley notes that investors are now presented with an opportunity, considering Solventum’s management has taken over the company much quicker than expected.
Solventum Corporation (NYSE:SOLV) is a healthcare company that was spun off from the 3M healthcare division. It develops, manufactures, and markets a range of solutions to meet the needs of patients and customers across the globe.
8. Alcon Inc. (NYSE:ALC)
Analyst Upside: 23.36%
Number of Hedge Fund Holders: 40
Alcon Inc. (NYSE:ALC) ranks among the best medical stocks to buy according to analysts. On July 10, Stifel reaffirmed its Buy rating for Alcon Inc. (NYSE:ALC) with a $100 price rating. According to the research firm, one of the main reasons for the ongoing optimism is Alcon’s dominant market position in the ophthalmology industry.
Stifel emphasizes Alcon’s position in what it calls an “attractive” industry category and sees the company as a “core holding” in its coverage umbrella. According to the firm, Alcon Inc. (NYSE:ALC) is currently seeing sustainable growth in the mid-single-digit percentage range or higher.
Stifel’s investment case for the eye care company was further backed by Alcon’s potential for margin expansion.
One of the most notable eye care companies, Alcon Inc. (NYSE:ALC) focuses on developing a variety of eye care products. The company offers a range of products, including intraocular lenses, surgical packs, microscopes, visualization systems, and medications to treat allergies and glaucoma.
7. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Analyst Upside: 24.09%
Number of Hedge Fund Holders: 106
Intuitive Surgical, Inc. (NASDAQ:ISRG) ranks among the best medical stocks to buy according to analysts. RBC Capital kept its Outperform rating on Intuitive Surgical, Inc. (NASDAQ:ISRG) and raised its price target for the surgical robotics company from $605 to $615 on July 23. The change follows Intuitive Surgical’s quarterly results, which came in better than anticipated. Sales were 3.8% higher than expected, and at $2.19, the company’s adjusted earnings per share represented a 23% increase, exceeding forecasts by more than 13%.
The firm emphasized that the earnings call allayed investor concerns about the impact of third-party remanufacturers, the current hospital spending environment, and the projected timeline for da Vinci 5 adoption and ramp-up.
Intuitive Surgical, Inc. (NASDAQ:ISRG) is dedicated to developing, manufacturing, and marketing robotic products that utilize minimally invasive surgery to improve clinical outcomes for patients. One such product is the da Vinci Surgical System, which comprises of a surgeon’s station, a patient-side cart with four robotic arms, a 3D vision system, and proprietary tools.
6. Bristol-Myers Squibb Company (NYSE:BMY)
Analyst Upside: 26.99%
Number of Hedge Fund Holders: 69
Bristol-Myers Squibb Company (NYSE:BMY) ranks among the best medical stocks to buy according to analysts. Bristol-Myers Squibb Company (NYSE:BMY) announced on July 21 that its supplementary New Drug Application for Sotyktu (deucravacitinib), a medication used to treat adults with active psoriatic arthritis, had been approved by the U.S. Food and Drug Administration.
The regulatory submissions were made based on the findings of two Phase 3 clinical trials, POETYK PsA-1 and POETYK PsA-2, which enrolled roughly 670 and 730 patients, respectively. When compared to placebo, a considerably higher number of patients using Sotyktu at Week 16 achieved an ACR20 response, indicating that both trials achieved their primary aim.
If Sotyktu is authorized for psoriatic arthritis, it could be the first TYK2 inhibitor for this medical condition. According to the company, the safety profile documented in the psoriatic arthritis trials was in line with earlier research.
A multinational biopharmaceutical corporation, Bristol-Myers Squibb Company (NYSE:BMY) is engaged in product discovery, research, licensing, manufacturing, marketing, and distribution.
5. Bio-Rad Laboratories, Inc. (NYSE:BIO)
Analyst Upside: 33.50%
Number of Hedge Fund Holders: 36
On July 31, Bio-Rad Laboratories, Inc. (NYSE:BIO) posted second-quarter earnings that far surpassed analyst expectation on account of higher-than-expected revenue and increased operating margin projections.
The company announced adjusted earnings per share of $2.61 in the second quarter, topping analyst expectations of $1.73. Revenue came in at $651.6 million, exceeding the consensus forecast of $615.2 million and indicating a 2.1% increase over the same quarter the previous year.
The Life Science division was the most notable, with revenues of $262.8 million, owing to increasing process chromatography and food safety product sales.
In addition, Bio-Rad Laboratories, Inc. (NYSE:BIO) recently acquired Stilla Technologies, a droplet digital PCR developer, boosting its Droplet Digital PCR offering with the debut of its QX Continuum system.
Bio-Rad Laboratories, Inc. (NYSE:BIO) is an American developer and manufacturer of specialized technological products for the life science research and clinical diagnostics markets.
4. Zoetis Inc. (NYSE:ZTS)
Analyst Upside: 37.18%
Number of Hedge Fund Holders: 74
Zoetis Inc. (NYSE:ZTS) ranks among the best medical stocks to buy according to analysts. With a price target of $210, Piper Sandler reaffirmed its Overweight rating on Zoetis Inc. (NYSE:ZTS) on July 2. According to the firm’s analysis, Zoetis’ 2025 guidance is unlikely to be negatively impacted by rising competition in its two largest franchises, dermatology and broad-spectrum parasiticides.
According to Piper Sandler, although Elanco’s Credelio Quattro launch was successful, the new product has largely contributed to market expansion rather than capturing a sizable portion of Zoetis’ market.
Based on the strength of its key businesses, Piper Sandler believes Zoetis Inc. (NYSE:ZTS) might still surpass revenue projections even if Librela, one of its products, may experience softness.
Global animal health provider Zoetis Inc. (NYSE:ZTS) focuses on delivering high-quality medications, vaccines, diagnostic tools, genetic testing, and services.
3. Sanofi (NASDAQ:SNY)
Analyst Upside: 42.53%
Number of Hedge Fund Holders: 27
Sanofi (NASDAQ:SNY) ranks among the best medical stocks to buy according to analysts. On July 25, Sanofi (NASDAQ:SNY) announced that Sarclisa, one of its medications, has been approved by the European Union for the treatment of newly diagnosed multiple myeloma patients who are eligible for transplantation. The approval significantly broadens the scope of treatment for Sarclisa by extending its use across all therapeutic lines in the EU.
The French pharmaceutical company claims that Sarclisa-VRD showed great improvement in the minimum residual disease (MRD) negativity, a crucial indicator of how well a treatment is working for patients with multiple myeloma.
With this regulatory milestone, Sarclisa’s approvals have been expanded to include multiple myeloma patients at different phases of their treatment cycle within the European Union.
Sanofi (NASDAQ:SNY) is a leading French healthcare company. Its primary goal is to enhance patient health through research, development, production, and promotion of a variety of therapeutic options.
2. Align Technology, Inc. (NASDAQ:ALGN)
Analyst Upside: 54.25%
Number of Hedge Fund Holders: 52
Align Technology, Inc. (NASDAQ:ALGN) ranks among the best medical stocks to buy according to analysts. Piper Sandler reaffirmed its $250 price target and Overweight rating on Align Technology, Inc. (NASDAQ:ALGN) on July 23 ahead of the company’s second-quarter earnings report.
According to the firm, June clear aligner volumes rose 3.9% (roughly flat when accounting for an additional day), bringing the total volume for the quarter to -3.1%. These results are characterized as “unequivocally better” than those shown in the monthly orthodontic data year-to-date and relative to late 2024.
Piper Sandler was hopeful that this could be the start of a demand trend reversal, pointing to consistent volume increases in the adult and teen categories as well as favorable trending patient exam data as a leading indicator.
Align Technology, Inc. (NASDAQ:ALGN), recognized as a leader in 3D-printed dental treatments, is a prominent medical device company that employs 3D printing to manufacture Invisalign systems, which straighten teeth with removable and custom-made aligners.
1. Novo Nordisk A/S (NYSE:NVO)
Analyst Upside: 65.35%
Number of Hedge Fund Holders: 60
Novo Nordisk A/S (NYSE:NVO) ranks among the best medical stocks to buy according to analysts. On July 18, Deutsche Bank reaffirmed its Buy rating for Novo Nordisk A/S (NYSE:NVO), citing a price target of DKK750. The firm continues to have a favorable outlook on the Danish pharmaceutical company ahead of its upcoming second-quarter earnings report.
In a July 8 preview headlined “EU Pharma: Q2 preview: things have got a little slipperier; may present opportunities,” Deutsche Bank analyst Emmanuel Papadakis offered his impressions of Novo Nordisk’s Q2. The bank accepts the potential for a trim at the upper end of Novo Nordisk’s projection, although it thinks a guiding range revision is unlikely.
Novo Nordisk A/S (NYSE:NVO) is a prominent global healthcare company that focuses on treating rare diseases, diabetes, and obesity. With 48,000 workers spread across more than 168 countries, Novo Nordisk is well-known for its pharmaceuticals, which include Wegovy, Rybelsus, and Ozempic.
While we acknowledge the potential of NVO 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 NVO and that has 100x upside potential, check out our report about this cheapest AI stock.
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