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.
10. Elevance Health, Inc. (NYSE:ELV)
Upside Potential as of December 5, 2025: 19.12%
Number of Hedge Fund Holders: 82
Share Price as of December 5, 2025: $330.75
As of December 7, Elevance Health, Inc. (NYSE:ELV) has a ‘Buy’ or equivalent rating from slightly more than half of the analysts covering the stock. With a median price target of $394, the stock has an upside potential of 19.12%.
On November 26, TD Cowen increased the price target on Elevance Health, Inc. (NYSE:ELV) to $400.00 from $380.00, with an unchanged ‘Buy’ rating on the stock, naming it as its “Best Idea for 2026.” The firm raised concerns regarding managed care, describing it as a “complicated investment landscape.” TD Cowen noted that the company’s current 2026 EPS consensus estimate is appropriate and supports growth, with the firm increasing its 2026 EPS estimate to $27.25.
Earlier on November 4, Mizuho trimmed its price target on Elevance Health, Inc. (NYSE:ELV) to $400 from $420, while keeping an ‘Outperform’ rating on the stock. The firm also reduced 2026 and 2027 earnings guidance to better reflect added challenges in Carelon.
Elevance Health, Inc. (NYSE:ELV) is an Indiana-based health benefits company operating through four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. Founded in 2001, the company is dedicated to simplifying the healthcare system.
9. The Cigna Group (NYSE:CI)
Upside Potential as of December 5, 2025: 22.44%
Number of Hedge Fund Holders: 78
Share Price as of December 5, 2025: $265.44
On December 5, TD Cowen reaffirmed a ‘Buy’ rating on The Cigna Group (NYSE:CI) and a price target of $333, which suggests an upside potential of 25.5%. The analyst also highlighted the company as a “Best Ideas 2026” pick.
TD Cowen highlighted that the company’s 2026 EPS will be within a specific range, while the stock trades at a decade-low valuation, implying it is “largely de-risked.” The analyst believes the company’s new rebate-free pharmacy benefit management (PBM) model will be the first step toward broader PBM reforms that could address regulatory issues and drive better valuation. What’s even more interesting is that the firm described the company’s segment guidance as “conservative,” emphasizing core earnings from the specialty pharmacy business.
Separately, on December 2, Guggenheim maintained its ‘Buy’ rating on The Cigna Group (NYSE:CI) and raised its price target to $318 from $309, according to TheFly. This revision reflects an upside potential of 20%.
The Cigna Group (NYSE:CI) is a Connecticut-based provider of insurance and related products and services. Founded in 1792, the company mainly operates through Evernorth Health Services and Cigna Healthcare segments.
8. CVS Health Corporation (NYSE:CVS)
Upside Potential as of December 5, 2025: 22.97%
Number of Hedge Fund Holders: 78
Share Price as of December 5, 2025: $75.63
On December 4, Bernstein SocGen Group lifted the price target on CVS Health Corporation (NYSE:CVS) to $86.00 from $77.00, while reaffirming a ‘Market Perform’ rating on the stock. The firm attributed the improved guidance to the company’s Aetna business unit, while acknowledging lingering pressures in its Pharmacy Benefit Manager (PBM) segment.
According to Bernstein, CVS Health Corporation (NYSE:CVS) is “executing very well on its turnaround,” but the complexities around the PBM environment can’t be ignored. This means that the EPS growth in the near term will be adversely impacted.
Aetna is what the firm describes as “an attractive growth engine” for CVS Health Corporation (NYSE:CVS), stating that PBM growth may resume alongside drug spend growth. Bernstein further added that “near-term PBM earnings growth uncertainty” offsets the “strong momentum in Aetna.”
On the same day, RBC Capital maintained its Outperform rating and $93 price target on CVS Health Corporation (NYSE:CVS) before the company’s Investor Day presentation, scheduled for Tuesday, December 9. The analyst highlighted the company’s strong position as the market transitions toward rebate-free pharmacy benefit manager (PBM) models.
CVS Health Corporation (NYSE:CVS) is a Rhode Island-based provider of health solutions in the United States. Incorporated in 1996, the company operates through three segments: Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness.
7. Sanofi (NASDAQ:SNY)
Upside Potential as of December 5, 2025: 23.16%
Number of Hedge Fund Holders: 32
Share Price as of December 5, 2025: 49.53
As of December 7, Sanofi (NASDAQ:SNY) has a ‘Buy’ or equivalent rating from the majority of the analysts covering the stock. With a one-year median price target of $61, the stock has an upside potential of 23.16%.
According to TheFly, BofA reduced the price target on Sanofi (NASDAQ:SNY) to EUR 102 from EUR 115 on December 1, while keeping a ‘Buy’ rating on the stock.
On December 4, Sanofi (NASDAQ:SNY) disclosed the completion of its acquisition of Vicebio Ltd., which is expected to not only bring an early-stage combination vaccine candidate for two respiratory viruses but also advance its capabilities in vaccine design and development through Vicebio’s Molecular Clamp technology. According to the press release, this acquisition will strengthen Sanofi’s position in respiratory vaccines and allow the company to deliver improved physician and patient choice.
Earlier on November 25, Sanofi (NASDAQ:SNY) and Regeneron announced that the European Commission approved Dupixent (dupilumab) for the treatment of chronic spontaneous urticaria (CSU) in the EU. This approval, based on phase 3 studies, is anticipated to fortify the company’s foothold in the immunology market.
Sanofi (NASDAQ:SNY), founded in 1994, is a French pharmaceutical company. The company delivers medicines and vaccines for immunology and inflammation, oncology, and other indications.
6. Novo Nordisk A/S (NYSE:NVO)
Upside Potential as of December 5, 2025: 29.57%
Number of Hedge Fund Holders: 50
Share Price as of December 5, 2025: $47.86
On December 5, Kerry Holford, an analyst at Berenberg Bank, reaffirmed the ‘Buy’ rating on Novo Nordisk A/S (NYSE:NVO) and kept the price target at $62, suggesting an upside potential of about 29%.
Earlier on December 3, Reuters sources revealed that Novo Nordisk A/S (NYSE:NVO) will make its blockbuster diabetes drug Ozempic available in the Indian market this month. This launch is in line with the company’s commitment to strengthen its position in the “world’s most populous nation,” they added. With the second-highest number of people with type 2 diabetes and rising obesity rates, India is a fast-growing weight-loss solution space, which is anticipated to hit nearly $150 billion per year by the end of the decade.
Overall, Novo Nordisk A/S (NYSE:NVO) is assigned ‘Buy’ or equivalent ratings from almost 60% of the analysts, with a median price target of $62.01. This implies an upside potential of 29.57% from the current price of $47.86.
Novo Nordisk A/S (NYSE:NVO) is a Denmark-based company that specializes in pharmaceutical products. Founded in 1923, the giant operates through two segments: Diabetes and Obesity Care, and Rare Disease.
5. Prestige Consumer Healthcare Inc. (NYSE:PBH)
Upside Potential as of December 5, 2025: 31.54%
Number of Hedge Fund Holders: 24
Share Price as of December 5, 2025: $60.82
As of December 7, Prestige Consumer Healthcare Inc. (NYSE:PBH) is a ‘Buy’ or equivalent, with the majority of the analysts bullish on the stock. With a consensus 1-year median price target of $80, the stock has an upside of nearly 32%.
According to TheFly, Susan Anderson from Canaccord trimmed the price target on Prestige Consumer Healthcare Inc. (NYSE:PBH) to $88 from $100, while keeping a ‘Buy’ rating on the stock, on November 7. The firm noted that the company delivered solid results; however, management claims that sales and earnings outperformed expectations due to Clear Eyes supply timing and the timing of specific retailer orders, which will reduce the numbers for the third quarter.
In the second-quarter results announced on November 6, Prestige Consumer Healthcare Inc. (NYSE:PBH) experienced a 6.1% decline in North American segment revenues, which was offset by a 2.5% rise in international segment revenues. The company remained focused on product innovation and e-commerce strategies, management revealed in the earnings call.
Prestige Consumer Healthcare Inc. (NYSE:PBH) is a New York-based provider of over-the-counter (OTC) health and personal care products. Incorporated in 1996, the company operates through two segments: North American OTC Healthcare and International OTC Healthcare.
4. Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX)
Upside Potential as of December 5, 2025: 48.75%
Number of Hedge Fund Holders: 34
Share Price as of December 5, 2025: $23.53
As of December 7, Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) is a consensus Buy with all seven analysts covering it assigning it a Buy or equivalent rating. With a median price of $35, the stock has an upside potential of 48.75% from its current price.
Earlier on November 26, Chief Commercial Officer of Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX), Jeffrey Del Carmen, offloaded 10,983 shares of common stock, valued at approximately $256,244. According to the latest Form 4 filing with the Securities and Exchange Commission, Del Carmen now owns 3,962 shares of the company’s stock.
During the company’s presentation at the Jefferies London Healthcare Conference 2025 on November 17, management highlighted plans to advance education in the oncology space for LEMS. Driving further interest, Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) disclosed its efforts to accelerate organic growth by targeting patients at various stages of the diagnostic journey. Despite competition in the epilepsy market, the company remains committed to patient support and strategic acquisitions.
Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) is a Florida-based commercial-stage biopharmaceutical company focused on treatments for people living with life-threatening diseases. Founded in 2002, the company offers Firdapse, Fycompa, Ruzurgi, and AGAMREE.
3. Concentra Group Holdings Parent, Inc. (NYSE:CON)
Upside Potential as of December 5, 2025: 48.95%
Number of Hedge Fund Holders: 23
Share Price as of December 5, 2025: $19.47
As of December 7, Concentra Group Holdings Parent, Inc. (NYSE:CON) has a “Buy” or equivalent rating from all seven analysts covering the stock. While the target price ranges from $25 to $31, the median price target of $29 implies an upside potential of 48.95% from the current price.
After Concentra Group Holdings Parent, Inc. (NYSE:CON) announced its third-quarter results on November 6, several analysts reaffirmed their bullish outlook on the company. On November 10, Mizuho Securities maintained a Buy rating on the stock, with an unchanged price target of $28. Three days earlier, Joanna Gajuk, an analyst at Bank of America Securities, maintained a Buy rating on the company.
In the third quarter, Concentra Group Holdings Parent, Inc. (NYSE:CON) reported increases in revenue, net income, and adjusted EBITDA of 17%, 8.9%, and 17.1%, respectively. Additionally, the company recorded a rise not only in revenue per visit but also in patient volumes.
As stated by Keith Newton, CEO of Concentra Group Holdings Parent, Inc. (NYSE:CON),
“Building on our business growth in the first half of the year, our strong third quarter results delivered year-over-year increases in revenue, net income, and Adjusted EBITDA driven by visit and rate growth, as well as executing on our inorganic strategy.”
Concentra Group Holdings Parent, Inc. (NYSE:CON), based in Addison, Texas, is a provider of occupational health services in the U.S. Founded in 1979, the company operates Concentra Telemed, Concentra Pharmacy, and Concentra Medical Compliance Administration.
2. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
Upside Potential as of December 5, 2025: 70.41%
Number of Hedge Fund Holders: 54
Share Price as of December 5, 2025: $53.40
As reported by TheFly, Leerink reduced the price target on BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) to $60 from $82 and downgraded it to Market Perform from Outperform on December 3.
According to the analyst, the actions taken by new leadership, including workforce cuts and discontinuing the Roctavian program, strengthen its long-term position. However, rising competitive pressure in achondroplasia and a significant gap in the company’s pipeline will make M&A necessary, the analyst noted, adding that this creates uncertainty about whether these measures are adequate to boost the stock from its current level.
Earlier on November 3, Bernstein also lowered the price target on BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) to $88 from $95, with a ‘Market Perform’ rating. The analyst noted the company’s quarterly performance, in which the company delivered revenue in line with expectations but missed its EPS target.
Overall, BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) has the majority of analysts assigning it a ‘Buy’ or equivalent rating, with a target price going as high as $122 and as low as $55, as of December 7. The median price target of $91 suggests an upside potential of about 70%.
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is a California-based biotechnology company that develops and markets therapies for serious rare diseases. The company’s core offerings include VIMIZIM, VOXZOGO, NAGLAZYME, and PALYNZIQ.
1. Soleno Therapeutics, Inc. (NASDAQ:SLNO)
Upside Potential as of December 5, 2025: 114.13%
Number of Hedge Fund Holders: 58
Share Price as of December 5, 2025: $51.37
As of December 7, Soleno Therapeutics, Inc. (NASDAQ:SLNO) has a consensus Buy rating, as all 13 analysts covering the stock have assigned a ‘Buy’ or equivalent rating. With a median price of $110, the stock boasts an upside potential of around 114%.
On November 5, Kristen Kluska, an analyst at Cantor Fitzgerald, reiterated a ‘Buy’ rating on Soleno Therapeutics, Inc. (SLNO), with a price target of $123. Similarly, Kate Dellorusso from LifeSci Capital also maintained the ‘Buy’ rating and a $110 price target.
On the same day, Wells Fargo analyst Derek Archila reduced his price target on the stock to $106 from $123, while keeping an ‘Overweight’ rating. The analyst believes Vykat XR will be a “$1B-plus drug in Prader-Willi syndrome.”
Later on November 17, Wolfe Research began coverage of Soleno Therapeutics, Inc. (NASDAQ:SLNO) with an ‘Outperform’ rating and a $75 price target, suggesting an upside potential of nearly 44% from the current price. This optimism surrounds the company’s recent FDA approval of Vykat XR, which the analyst regards as “the only approved therapy for hyperphagia in PWS.” With the approval of its Prader-Willi syndrome solution, Soleno Therapeutics, Inc. (NASDAQ:SLNO) is “entering a new phase of value creation,” the research firm stated.
Soleno Therapeutics, Inc. (NASDAQ:SLNO) is a California-based clinical-stage biopharmaceutical company specializing in novel therapeutics to treat serious illnesses. Founded in 1999, the company provides Diazoxide Choline Extended-Release tablets.
While we acknowledge the potential of SLNO 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 SLNO and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
