In this article, we will be taking a look at the 15 Innovative Healthcare Stocks to Buy According to Analysts.
Over the last two years, artificial intelligence has propelled global financial markets into a boom, with stocks reaching all-time highs. As concerns about value grow, investors are moving their funds from the crowded AI industry to sectors with more enticing risk-reward profiles. The healthcare industry is one significant sector that has profited immensely from this shift.
Since President Donald Trump’s deregulation initiatives have improved the climate for healthcare transactions, the industry has accelerated. Because of these factors, healthcare companies outperformed the MSCI World Index by 7.5% in the fourth quarter of 2025. Meanwhile, a new area of investment is developing at the intersection of AI and healthcare.
The need for AI-powered technologies that improve medical imaging, facilitate early disease identification, and speed up the development of new medications is growing. This trend was highlighted at the JPMorgan Healthcare Conference, when companies committed over $1 billion to AI computer capacity, knowledge, and infrastructure.
The healthcare industry has strong long-term fundamentals, including expected annualized profits growth of 11.5%, which is higher than most equity sectors, despite short-term volatility. Investment is also anticipated to be encouraged by lower interest rates and better financing circumstances, especially for businesses with obvious commercialization routes.
Medicare Advantage reimbursement is still unclear, though. In January, Mizuho strategist Jared Holz noted that a Trump administration proposal calling for only a 0.09% payment increase shocked investors and pressured major insurers. Ahead of the April decision, Holz stressed that the proposal is not final and may be improved. He thinks concerns about a structural downturn are exaggerated, seeing the current state of affairs as a brief lull rather than the conclusion of the sector’s long-term development narrative, even though earnings growth may be reduced for the next year or two.
Our Methodology
For our methodology, we began by filtering innovative healthcare stocks with a market capitalization above $2 billion and a positive analyst upside of at least 20% as of February 9. From this list, we selected the top 15 companies and ranked them in ascending order based on their price target upside.
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).
Here is our list of the 15 innovative healthcare stocks to buy according to analysts.
15. Prestige Consumer Healthcare Inc. (NYSE:PBH)
Price Target Upside: 22.36%
Prestige Consumer Healthcare Inc. (NYSE:PBH) stands fifteenth on our list of best healthcare stocks.
TheFly reported on February 6 that Canaccord reduced its price target on PBH to $86 from $88 and maintained a Buy rating on the shares. The change came after the company reported fiscal third-quarter sales of $283.4 million, a 2.4% year-over-year decline. This amount was roughly in line with company projections and came in just over the $282.0 million that the Street had anticipated. According to management, the Clear Eyes brand’s supply issues were the main cause of the sales drop.
Moreover, on February 5, Prestige Consumer Healthcare Inc. (NYSE:PBH) reported third-quarter net income, which totaled $46.7 million, while adjusted net income reached $54.9 million. Diluted EPS of $0.97, while adjusted diluted EPS came in at $1.14, compared with $1.22 in the same quarter last year. The company also finalized the acquisition of Pillar5 Pharma and repurchased about 0.8 million shares during the quarter. While maintaining projections for free cash flow of at least $245 million, the corporation also reduced its fiscal 2026 sales outlook to about $1.1 billion.
Prestige Consumer Healthcare Inc. (NYSE:PBH) is a U.S. over-the-counter healthcare company that markets and innovates trusted wellness brands and continuously improves products to meet evolving consumer needs while expanding its portfolio and global reach in OTC care.
14. Alignment Healthcare, Inc. (NASDAQ:ALHC)
Price Target Upside: 22.89%
The next stock on our list is Alignment Healthcare, Inc. (NASDAQ:ALHC).
TheFly reported on January 30 that Baird increased its price target on ALHC to $28 from $22 while maintaining an Outperform rating. After updating its financial model, the firm now believes there is significant upside potential and that the shares might rise to $59, or around 163% over their present price.
Separately, John E. Kao, the CEO of Alignment Healthcare, Inc. (NASDAQ:ALHC), recently sold 180,000 shares on February 10 for a total of about $3.68 million at a weighted-average price of $20.4853. The individual deals ranged from $20.23 to $20.66. A pre-established Rule 10b5-1 trading plan that was adopted on March 12, 2025, was used to perform the trade.
After the sale, Kao still owns more than 2.6 million shares indirectly through a trust in which he acts as trustee and more than 1.5 million shares personally. The stock has risen 21.7% over the last six months. Despite the company’s lack of profitability over the last 12 months, analysts predict profitability this year, with an expected FY2025 EPS of $0.23. ALHC is also anticipated to report its earnings on February 26, 2026.
Alignment Healthcare, Inc. (NASDAQ:ALHC) is a U.S. tech-enabled Medicare Advantage company innovating senior care with AI-driven data analytics through its proprietary AVA platform to proactively predict and personalize care, which is supported by a 24/7 concierge model that improves outcomes, access, and member experience.
13. Concentra Group Holdings Parent, Inc. (NYSE:CON)
Price Target Upside: 23.98%
The thirteenth stock on our list of best healthcare stocks is Concentra Group Holdings Parent, Inc. (NYSE:CON).
TheFly reported on February 2 that RBC Capital raised its price target on CON to $31 from $30 and maintained an Outperform rating. The hike comes after the company’s Q4 pre-announcement, which was above the consensus, and its early projection for FY2026. RBC stated that despite continuous macroeconomic instability, CON’s business model is inherently stable, as seen by its solid Q4 performance.
Concentra Group Holdings Parent, Inc. (NYSE:CON) stated on January 28 that it anticipates FY2026 revenue to be between $2.25 billion and $2.35 billion, which is just below the $2.32 billion consensus forecast. The company also continues to expand, announcing on January 26 the opening of a new medical center in Georgia. This move supports CON’s long-term revenue growth and market position while demonstrating the company’s continued commitment to expanding access to its occupational health and wellness services.
Concentra Group Holdings Parent, Inc. (NYSE:CON) is the largest U.S. occupational health services provider, innovating workforce healthcare with tech‑enabled care, telemedicine, and an expanding network of onsite clinics that improve employee health access, efficiency, and outcomes while driving growth through strategic acquisitions and integrated service solutions.
12. BridgeBioPharma, Inc. (NASDAQ:BBIO)
Price Target Upside: 24.46%
BridgeBio Pharma, Inc. (NASDAQ:BBIO) is given twelfth position on our list of best healthcare stocks.
TheFly reported on February 3 that Bank of America analyst Jason Zemansky raised its price target on BBIO to $88 from $85 and maintained a Buy rating on the shares. The firm noted that, given the level of pre-announcements, the company’s upcoming Q4 earnings may not have the same market impact as in previous years, which reflects tempered investor expectations ahead of the report.
Separately, earlier on January 27, Barclays initiated coverage of BridgeBio Pharma, Inc. (NASDAQ:BBIO) with an Overweight rating and a $157 price target. According to the firm, the biotech industry is well-positioned for growth, and many companies are still undervalued, so it has a bright future in 2026. Expectations for more mergers and acquisitions, solid underlying fundamentals, and less attention to medication prices are all anticipated to be significant tailwinds for businesses operating in the sector, according to Barclays.
BridgeBio Pharma, Inc. (NASDAQ:BBIO) is a U.S. biopharmaceutical company innovating genetic medicine by discovering and developing transformative therapies that target the root causes of rare genetic diseases and cancers, advancing breakthrough gene and precision therapies from early research through clinical and commercial stages.
11. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)
Price Target Upside: 33.33%
Acadia Pharmaceuticals Inc. (NASDAQ:ACAD) is one of the best innovative healthcare stocks on our list.
TheFly reported on February 6 that Oppenheimer raised its price target on ACAD to $23 from $21 and maintained a Perform rating on the shares. The firm maintains a balanced outlook on the company heading into 2026, following discussions with management and investors regarding recent updates and developments.
In addition, Acadia Pharmaceuticals Inc. (NASDAQ:ACAD) reported earlier on February 2 that the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency had given its Marketing Authorization Application for trofinetide (DAYBUE) to treat Rett syndrome a negative trend vote in response to a recent oral explanation from the CHMP. ACAD intends to ask for a re-examination after the official opinion is adopted, even though the formal opinion is anticipated later in February.
Despite the disappointing result, CEO Catherine Owen Adams stressed that patients benefit from trofinetide’s substantial clinical evidence that supports its approval in the United States, Canada, and Israel. Over 1,000 individuals are currently receiving active therapy worldwide, ranging in age from toddlers who have just received a diagnosis to adults with chronic illnesses. Results from clinical studies continue to align with current real-world research conducted in the United States. In order to provide trofinetide to patients with Rett syndrome in the EU, ACAD is still dedicated to collaborating with the EMA and other relevant parties.
Acadia Pharmaceuticals Inc. (NASDAQ:ACAD) is a U.S. biopharmaceutical innovator advancing therapies for underserved neurological and rare diseases, with the first‑ever FDA‑approved treatments for Parkinson’s disease psychosis and Rett syndrome, and a data‑driven pipeline leveraging precision science and AI to target unmet CNS needs.
10. Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR)
Price Target Upside: 34.01%
The tenth stock on our list is Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR).
TheFly reported on February 6 that Morgan Stanley lowered its price target for ARWR to $78 from $81 and kept an Equal Weight rating. The firm noted that the company stated that it is still moving forward with its pipeline and that several significant readouts, such as Phase 3 data for SHTG in Q3, are anticipated later this year. The firm anticipates that significant sales from this program will not materialize in 2026, despite the promising early launch trends for the familial chylomicronemia syndrome treatment.
Additionally, on January 27, Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) announced that it has dosed the first participants in its Phase 1/2a clinical trial of ARO-DIMER-PA. This is an investigational RNAi therapy that may be used to treat atherosclerotic cardiovascular disease caused by mixed hyperlipidemia. The goal of the dual-targeted medication ARO-DIMER-PA is to simultaneously suppress the genes APOC3 (apolipoprotein C3) and PCSK9 (proprotein convertase subtilisin/kexin type 9). By concentrating on both pathways, the treatment aims to more effectively reduce lipid levels, which tends to offer a novel approach for cardiovascular risk patients with elevated cholesterol and triglycerides.
Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) is a U.S. biotech innovator developing RNA interference (RNAi) medicines that silence disease‑causing genes. Its proprietary TRiM RNAi platform enables targeted, durable therapies for previously “undruggable” conditions and advances treatments across cardiometabolic, rare genetic, and other diseases.
9. Travere Therapeutics, Inc. (NASDAQ:TVTX)
Price Target Upside: 38.82%
Travere Therapeutics, Inc. (NASDAQ:TVTX) is placed ninth on our list.
TheFly reported on February 6 that Piper Sandler raised its price target on TVTX to $38 from $35 and maintained a Neutral rating on the shares. The adjustment comes following several Q4 and full-year 2025 pre-announcements and ahead of the company’s upcoming Q4 report. The firm used this period to review and update its estimates for select commercial names, including Travere, which prompted the revised price target.
Earlier on February 3, BofA also raised its price target on Travere Therapeutics, Inc. (NASDAQ:TVTX) to $44 from $43 and gave it a Buy rating. The firm noted that, given the recent pre-announcements, the upcoming Q4 earnings report may not have the same impact as in previous years. The price target adjustment reflects BofA’s updated view of the company within its biopharma coverage ahead of the quarterly results.
Travere Therapeutics, Inc. (NASDAQ:TVTX) is a U.S. biopharmaceutical company focused on innovative rare disease therapies, developing and commercializing novel treatments like FILSPARI and enzyme replacement candidates for unmet renal and metabolic conditions, and leveraging patient‑centric science and strategic collaborations to drive breakthrough care.
8. Cytokinetics, Incorporated (NASDAQ:CYTK)
Price Target Upside: 40.53%
Cytokinetics, Incorporated (NASDAQ:CYTK) is one of the fifteen best healthcare stocks on our list.
TheFly reported on February 3 that Truist raised its price target on CYTK to $92 from $84 and maintained a Buy rating. The company revised its model ahead of its Q4 results to account for the impact of the drug’s free supply program, the annual WAC price of $108,400 for Myqorzo, and increased operational costs anticipated in 2026 to support short-term operations. Truist’s updated prognosis, which takes these considerations into account, is reflected in the adjustment.
Cytokinetics, Incorporated (NASDAQ:CYTK) reported on January 27 that MYQORZO (aficamten) is now available in the United States in tablet form in dosages of 5 mg, 10 mg, 15 mg, and 20 mg. The medication is for treating obstructive hypertrophic cardiomyopathy (oHCM) symptoms and functional capacity in adults. According to President and CEO Robert I. Blum, the launch signifies the company’s entry into the commercial biopharmaceutical stage and demonstrates its dedication to patients with oHCM.
The introduction of MYQORZO is supported by the fully operational REMS program, which is a specialty pharmacy distribution network, and years of clinical development and commercial readiness that ensure patients have access to this new treatment while benefiting from the company’s focus on patient safety and the broader HCM community.
Cytokinetics, Incorporated (NASDAQ:CYTK) is a U.S. biopharmaceutical innovator focused on muscle biology, developing first‑in‑class muscle activators and inhibitors that target sarcomere function to treat debilitating cardiovascular and neuromuscular diseases, advancing novel therapies grounded in deep science and rigorous research.
7. Doximity, Inc. (NYSE:DOCS)
Price Target Upside: 44.67%
The stock given seventh position on our list of best healthcare stocks is Doximity, Inc. (NYSE:DOCS).
TheFly reported on February 9 that Canaccord Genuity upgraded DOCS from Hold to Buy and lowered the price target to $34 from $48. The post-earnings selloff, according to the firm, was an overreaction to immediate worries about how policy and pricing uncertainties might impact pharmaceutical budgets. It was wise to draw a line and upgrade the company, according to Canaccord, which also predicted that DOCS shares would rise sharply over the course of the upcoming year as pharmaceutical budgets level off, offering a longer-term buying opportunity.
Moreover, Doximity, Inc. (NYSE: DOCS) announced its fiscal Q3 2026 results on February 5. The company’s revenue for the quarter ending December 31, 2025, was $185.1 million, a 10% rise over the previous year. While net income reached $61.6 million, suggesting a 33% margin, adjusted EBITDA climbed 9% to $111.4 million, with margins staying at 60%. According to the company, platform engagement reached all-time highs, with 720,000 active users for workflow solutions and over 300,000 people using AI features. CEO Jeff Tangney claims that platform utility has increased as a result of AI integration.
In addition, the company authorized a $500 million stock repurchase program, which underscores confidence in long-term value creation. DOCS also provided guidance for Q4 and full fiscal 2026, projecting revenues of approximately $643 million and adjusted EBITDA near $356 million.
Doximity, Inc. (NYSE:DOCS) is a U.S. digital healthcare platform connecting medical professionals with secure networking, telehealth, AI‑powered workflow tools, and clinical insights. It innovates by embedding AI, telemedicine, and productivity tools into a unified physician‑centric ecosystem that streamlines care delivery, communication, and administrative tasks.
6. Haemonetics Corporation (NYSE:HAE)
Price Target Upside: 54.51%
Haemonetics Corporation (NYSE:HAE) is among the most innovative healthcare stocks.
TheFly reported on February 6 that Baird lowered its price target for HAE to $81 from $99 while maintaining an Outperform rating. The firm updated its model following the company’s Q3 results and lowered the estimates for certain segments. However, Baird noted that the Plasma business appears to offer upside potential, which provides a possible lever for future growth despite the more conservative outlook.
In contrast, on the same day, Barrington Research raised its price target on Haemonetics Corporation (NYSE:HAE) to $94 from $93 while maintaining an Outperform rating. The update followed a “mixed bag” quarter, but the company provided what Barrington described as solid guidance for fiscal year 2026, supporting confidence in its near-term outlook despite variability in quarterly results.
Haemonetics Corporation (NYSE:HAE) is a global medical technology innovator delivering advanced blood, plasma, and surgical care solutions that improve clinical outcomes and operational efficiency. Its portfolio combines cutting‑edge devices, software, and automation that enhance collection yield, workflow efficiency, and patient safety in hospitals and blood centers worldwide.
5. Hims & Hers Health, Inc. (NYSE:HIMS)
Price Target Upside: 84.90%
Hims & Hers Health, Inc. (NYSE:HIMS) is one of the best healthcare stocks on our list.
TheFly reported on February 10 that Deutsche Bank lowered its price target on HIMS to $31 from $42 and maintained a Hold rating on the shares. The firm noted that the company is “under siege” following the reversal of its GLP-1 pill launch, reflecting heightened uncertainty around its recently introduced products and near-term growth prospects.
Earlier on February 5, Novo Nordisk criticized Hims & Hers Health, Inc. (NYSE:HIMS) for planning to mass-market what it called an unapproved semaglutide pill. Novo Nordisk said it would take legal and regulatory measures to safeguard patients, protect its intellectual property, and support the U.S. drug approval system, and called the action illegal, large-scale compounding that could jeopardize patient safety. Additionally, it referenced earlier FDA warnings regarding alleged deceptive advertising and charged HIMS with pushing GLP-1 imitation goods.
On February 9, HIMS responded to Novo Nordisk’s lawsuit, calling it an attempt to limit access to compounded medications. The company restated its commitment to affordable healthcare options in a post on X, stating that the case reflected broader efforts by a major pharmaceutical manufacturer to limit consumer choice and access to tailored therapies.
Hims & Hers Health, Inc. (NYSE:HIMS) is a U.S. telehealth and wellness platform that innovates by using data‑driven technology, digital diagnostics, and personalized virtual care to connect consumers with licensed providers and tailored treatments at scale and expand access to affordable, customized health solutions.
4. Waystar Holding Corp. (NASDAQ:WAY)
Price Target Upside: 88.44%
The fourth stock on this list is Waystar Holding Corp. (NASDAQ:WAY).
TheFly reported on February 4 that Mizuho lowered its price target on WAY to $42 from $50 while maintaining an Outperform rating. The reduction reflects the firm’s reassessment of competitive risks within the healthcare technology sector.
Additionally, earlier on February 2, Leerink initiated coverage of Waystar Holding Corp. (NASDAQ:WAY) with an Outperform rating and a $43 price target. The firm thinks that WAY’s broad market reach, which opens doors for further client penetration and growth, positions the company to maintain growth. Leerink added that the company’s end-to-end products are improved and its artificial intelligence capabilities are strengthened by the recent acquisition of Iodine. A more complete, one-stop solution for health systems is supported by these additional capabilities, which may provide incremental benefits as the platform develops.
Waystar Holding Corp. (NASDAQ:WAY) also announced on February 6 that Chief Business Officer Eric Sinclair III will resign effective March 2, 2026. Sinclair’s departure is not related to any disagreements with the company, and he will receive his 2025 annual bonus but no additional severance. On the innovation front, WAY has incorporated agentic intelligence into its healthcare payment platform and upgraded its AltitudeAI system. The enhancement has already prevented $15.5 billion in claim denials in under a year, which shows the company’s ongoing efforts to strengthen its operational capabilities despite a challenging market environment.
Waystar Holding Corp. (NASDAQ:WAY) is a U.S. healthcare technology company that simplifies and modernizes healthcare payments with a cloud‑native, AI‑powered revenue cycle management platform. Its innovative use of automation, machine learning, and analytics improves claim accuracy, efficiency, and patient payment experiences for providers nationwide.
3. Hinge Health, Inc. (NYSE:HNGE)
Price Target Upside: 97.67%
Hinge Health, Inc. (NYSE:HNGE) secures third place on our list of innovative healthcare stocks.
TheFly reported on February 5 that Stifel lowered its price target on HNGE to $59 from $66 and maintained a Buy rating on the shares. The analyst pointed out that the retreat offers an interesting chance for investors, which indicates that the current downturn may give advantageous entry points within the healthcare technology industry, notwithstanding recent market turbulence.
Furthermore, Hinge Health, Inc. (NYSE:HNGE) released its fiscal year 2026 projection on February 10 and predicted revenue between $732 million and $742 million, which at the halfway point would represent a roughly 25% year-over-year rise. Additionally, it projects non-GAAP operating income to be between $151 million and $156 million, which is an expected 29% increase over the previous year. The non-GAAP operating margin is expected to be 21% at the halfway point of the guideline. As the business starts a new fiscal year, the projection predicts that both top-line performance and operating profitability will continue to grow.
Hinge Health, Inc. (NYSE:HNGE) is a U.S. digital musculoskeletal (MSK) care innovator that combines AI‑powered care plans, computer vision, wearables, and clinical teams to deliver personalized, accessible treatment for pain and rehabilitation, reshaping how employers and health plans manage MSK health and reduce costs.
2. Wave Life Sciences Ltd. (NASDAQ:WVE)
Price Target Upside: 139.83%
Wave Life Sciences Ltd. (NASDAQ:WVE) stands second on our list of innovative healthcare stocks.
TheFly reported on February 5 that Bank of America (BofA) initiated coverage of WVE with a Buy rating and a price target of $38. The firm highlighted WVE-007, the company’s investigational siRNA for obesity, as a primary value driver, contributing approximately 56% of the target. BofA noted that WVE-007 could offer differentiation in body composition improvements, and their modeling anticipates peak sales above Street estimates, exceeding $11 billion on an unadjusted basis.
Additionally, earlier on February 2, Wave Life Sciences Ltd. (NASDAQ:WVE) announced it has regained full global rights to WVE-006, a potential therapy for alpha-1 antitrypsin deficiency (AATD), from GSK. A rare genetic disorder with no approved treatments, AATD affects both the lungs and liver and impacts approximately 200,000 patients in the U.S. and Europe. WVE is accelerating development of the program and plans to engage the U.S. FDA regarding a potential accelerated approval pathway, with regulatory feedback expected by mid-2026. The collaboration with GSK continues, under which WVE could earn up to $2.8 billion in milestones and royalties.
Wave Life Sciences Ltd. (NASDAQ:WVE) is a clinical‑stage biotech innovator harnessing its proprietary PRISM RNA medicines platform to design and develop next‑generation therapies using RNA editing, splicing, and silencing, targeting both rare and common diseases and expanding possibilities in precision genetic medicine.
1. Legend Biotech Corporation (NASDAQ:LEGN)
Price Target Upside: 301.28%
Legend Biotech Corporation (NASDAQ:LEGN) tops our list of the best healthcare stocks.
TheFly reported on February 4 that Barclays lowered its price target on LEGN to $80 from $90 and maintained an Overweight rating on the shares. Although the long-term forecast for the company’s clinical projects is still favorable, the revision comes ahead of the firm’s Q4 earnings preview for the biotechnology industry, which reflects a larger reconsideration of near-term expectations.
Separately, Legend Biotech Corporation (NASDAQ:LEGN) announced its strategic targets for 2026 and gave an update on its clinical and commercial developments last month, on January 12. As of early 2026, CARVYKTI was still the market leader for multiple myeloma CAR-T cell treatment, treating over 10,000 patients. By using CARVYKTI globally and utilizing its CAR-T platform for frontline multiple myeloma and future in vivo and allogeneic initiatives, the business hopes to turn a profit by 2026. With cash, cash equivalents, and time deposits of almost $1.0 billion as of September 30, 2025, the firm has a financial runway beyond 2026 and can support its ambitions for transformative growth and operating profit for the entire organization.
Legend Biotech Corporation (NASDAQ:LEGN) is a U.S. biotech innovator pioneering next‑generation cell therapies, including FDA‑approved CAR‑T treatments for multiple myeloma. It advances cutting‑edge immune‑based platforms and proprietary technologies to redefine cancer care and expand transformative therapeutic options worldwide.
While we acknowledge the potential of LEGN 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 LEGN and that has 100x upside potential, check out our report about this cheapest AI stock.
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