5 Best Healthcare Stocks to Buy with Highest Upside Potential

2. Zoetis Inc. (NYSE:ZTS)

Analyst Upside: 50.85%

Zoetis Inc. (NYSE:ZTS) is one of the best healthcare stocks to buy with highest upside potential. Zoetis Inc. (NYSE:ZTS) received a rating update from Stifel on May 22. The firm cut the price target on the stock to $95 from $105 while maintaining a Hold rating on the shares, and told investors that the company’s revised 2026 guidance implies things improve, yet near-term competitive pressures “appear poised to intensify”.

Zoetis Inc. (NYSE:ZTS) also received a rating update from Argus on May 27, with the firm downgrading the stock to Hold from Buy. It told investors in a research note that the company’s stock price underwent a dramatic decline of 22% in a single day. It added that further losses thereafter reflected a lack of confidence among investors regarding the company’s growth prospects.

For reference, in its financial results for fiscal Q1 2026, Zoetis Inc. (NYSE:ZTS) reported revenue of $2.3 billion, up 3%, and net income of $601 million, or $1.42 per diluted share, flat and increasing 6%, respectively, on a reported basis. Adjusted net income for the quarter was $646 Million, or adjusted diluted EPS of $1.53.

Zoetis Inc. (NYSE:ZTS) is a global animal health company that focuses on the discovery, development, manufacture, and commercialization of vaccines, medicines, biodevices, genetic tests, diagnostic products, and precision animal health. Its operations are divided into the United States and International segments.