In this article, we will take a look at the cheap healthcare stocks to buy heading into 2026.
Since the pandemic, healthcare is one of the sectors that have remained in the spotlight even amid market twists. Although the healthcare market has proven its ability to adapt, grow, and innovate, a surprising number of stocks remain undervalued as we head into 2026.
In light of this, two strategists at JPMorgan published an article titled “3 reasons we now favor the healthcare sector” on December 5. The research firm acknowledged the optimism surrounding monetary easing and strong earnings, despite worries over policy shifts and concerns about the potential “AI bubble.” The healthcare sector stands out for its rebound, the writers added.
Just recently, the firm upgraded healthcare to one of its preferred sectors, citing three reasons: easing policy overhang, earnings clarity and stabilization, and accelerating M&A activity. As the strategists wrote,
“In summary, after years of headwinds, the healthcare sector is showing signs of stabilization and renewed momentum. We think the improving earnings clarity, easing policy pressures and accelerating M&A activity are positioning the sector for a more constructive outlook in 2026 and beyond.”
With this in mind, we have compiled a list of 12 cheap healthcare stocks worth buying heading into 2026.
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Our methodology
Our list of the cheap healthcare stocks to buy heading into 2026 is based on leading companies with solid upside potential. We began by filtering for stocks in the healthcare sector with a market capitalisation of more than $2 billion and those covered by three or more analysts. From this pool, we selected companies with upside potential of over 10% and a forward P/E in the range of 8 to 15. We then shortlisted the top 12 companies with the highest upside potential and ranked them in ascending order. We also included data on hedge fund holdings in these companies based on Insider Monkey’s database, as of Q3 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12. ICON Public Limited Company (NASDAQ:ICLR)
Upside Potential as of December 5, 2025: 14.87%
Number of Hedge Fund Holders: 43
Share Price as of December 5, 2025: $185.87
On December 4, BMO Capital maintained its ‘Market Perform’ rating and $175 price target on ICON Public Limited Company (NASDAQ:ICLR) after the analyst call with management. During the call, many topics were discussed, including senior executive change and ongoing trends surrounding cancellations.
The analyst also assessed the company’s dynamics in functional work relative to its full-service offerings, along with its plans to increase investments in automation and agentic AI. Additionally, the call discussed the higher pass-through revenue and how it could influence margins in the times ahead, the analyst stated.
According to TheFly, BMO Capital started its coverage on ICON Public Limited Company (NASDAQ:ICLR) on November 13, with a ‘Market Perform’ rating and $175 price target. In that update, the analyst noted that the company’s cancellations will remain elevated in the upcoming quarters. The analyst further added that the company is probably through the worst period now.
Overall, ICON Public Limited Company (NASDAQ:ICLR) has a ‘Buy’ or equivalent rating from most of the analysts covering the stock. With a one-year median price target of $213.50, the stock has an upside potential of nearly 15%.
ICON Public Limited Company (NASDAQ:ICLR) is an Ireland-based clinical research organization that offers outsourced development and commercialization services. Founded in 1989, the company is committed to delivering leading clinical research solutions.
11. Lantheus Holdings, Inc. (NASDAQ:LNTH)
Upside Potential as of December 5, 2025: 18.48%
Number of Hedge Fund Holders: 35
Share Price as of December 5, 2025: $63.30
As of December 7, Lantheus Holdings, Inc. (NASDAQ:LNTH) has a rating of ‘Buy’ or equivalent from almost 80% of the analysts covering the stock. With a median price target of $75, the stock has an upside potential of 18.48% from the current price.
On November 24, Matthew Taylor, an analyst at Jefferies, reiterated a Buy rating on Lantheus Holdings, Inc. (NASDAQ:LNTH), while keeping the price target at $105, which suggests an upside potential of 66%.
Earlier on November 12, Leerink Partners trimmed its price target on Lantheus Holdings, Inc. (NASDAQ:LNTH) to $90 from $97, with an unchanged ‘Overweight’ rating. The analyst believes that 340B pricing pressures and competitive dynamics will influence the company’s Pylarify franchise, leading to a downgrade of the outlook.
When Lantheus Holdings, Inc. (NASDAQ:LNTH) announced its third-quarter results on November 6, it delivered mixed financial performance. Although revenue surpassed consensus estimates by about 5%, the diluted EPS came at 2% below consensus expectations. The lower Pylarify revenues were attributed to “340B best price-driven price compression and competitive pressures from Ga-68 PSMA PET agents at large accounts.”
Lantheus Holdings, Inc. (NASDAQ:LNTH) is a Massachusetts-based company specializing in diagnostic and therapeutic products for the treatment of a diverse range of diseases. Incorporated in 1956, the company offers DEFINITY, TechneLite, Xenon-133, and Neurolite, among others.
