In this article, we will look at the 10 Best Healthcare Stocks with the Highest Upside.
On October 9, Dr. Vin Gupta, NBC News medical analyst, appeared on CNBC to talk about the government shutdown and its effect on access to healthcare.
Talking about how people are feeling the impact of the shutdown, Dr. Gupta said that the effects of the shutdown are broad-based and happening now, disproportionately impacting the states that supported the president in the most recent elections.
READ ALSO: 8 Large Cap Stocks With More Than 50% Upside and 10 Best Penny Stocks to Buy According to Hedge Funds.
30% of health services across the countries, he stated, have already announced the shuttering of telehealth services for seniors, beneficiaries on Medicaid, and those on Medicare. 34 million people get their basic primary care access through federally qualified health centers, and they do not have funding as of the date of the shutdown.
Therefore, according to him, the impacts are not going to happen on November 1st or if the ACA tax credits do not get extended, they are happening at the present.
With these trends in view, let’s look at the best healthcare stocks with the highest upside.
Our Methodology
We used stock screeners to make a list of healthcare stocks with high analyst upside potential. We selected the top 10 that were the most popular among hedge funds, as of Q2 2025, and sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Note: All data was sourced on October 15.
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).
9 Best Healthcare Stocks with the Highest Upside
9. IDEAYA Biosciences, Inc. (NASDAQ:IDYA)
Analyst Upside: 58.56%
Number of Hedge Fund Holders: 32
IDEAYA Biosciences, Inc. (NASDAQ:IDYA) is one of the best healthcare stocks with the highest upside. Citizens JMP analyst Silvan Tuerkcan released a rating update for IDEAYA Biosciences, Inc. (NASDAQ:IDYA) on October 13, maintaining a Buy rating for the stock with a price target of $45.
IDEAYA Biosciences, Inc. (NASDAQ:IDYA) also received a bullish rating from J.P. Morgan analyst Anupam Rama on September 23, who assigned the stock a Buy rating with a $74 price target.
The analyst based the rating on several promising developments associated with the company’s lead asset, darovasertib, stating that IDEAYA Biosciences, Inc. (NASDAQ:IDYA) is anticipated to release notable updates on darovasertib in several treatment settings. This is expected to support significant value creation.
Darovasertib is a small molecule for patients with uveal melanoma, which is a rare type of eye cancer with considerable unmet medical need.
IDEAYA Biosciences, Inc. (NASDAQ:IDYA) develops oncology-focused precision medicine, focusing on targeted therapeutics for patients selected using molecular diagnostics. The company’s product candidate is IDE196, a protein kinase C inhibitor that targets genetically defined cancers with GNAQ or GNA11 gene mutations.
8. CG Oncology, Inc. (NASDAQ:CGON)
Analyst Upside: 59.12%
Number of Hedge Fund Holders: 32
On October 7, CG Oncology, Inc. (NASDAQ:CGON) was initiated with a Buy rating by Guggenheim analyst Brad Canino, who assigned the stock a $90 price target.
The firm told investors in a research note that it sees the company “rising to the top of quality oncology ideas.” It added that the non-muscle invasive bladder cancer market holds considerable pricing power and a number of patients, supporting the optimistic rating for CG Oncology, Inc. (NASDAQ:CGON).
Canino also cited CG Oncology, Inc.’s (NASDAQ:CGON) cretostimogene, which would enter FDA review in 2026, as a notable factor, highlighting its “best-in-class” efficacy and safety durability.
CG Oncology, Inc. (NASDAQ:CGON) is a clinical biopharmaceutical company that develops and commercializes bladder-sparing therapeutics for bladder cancer. Its product cretostimogene is initially in clinical development for the treatment of Non-Muscle Invasive Bladder Cancer (NMIBC). The company is making significant advancements across its pipeline to develop a potential backbone bladder-sparing therapy for NMIBC. With a strong tolerability profile and safety, cretostimogene has the potential to induce a durable, complete response in bladder cancer patients.
7. Apogee Therapeutics Inc. (NASDAQ:APGE)
Analyst Upside: 65.62%
Number of Hedge Fund Holders: 36
Apogee Therapeutics Inc. (NASDAQ:APGE) is one of the best healthcare stocks with the highest upside. BTIG analyst Julian Harrison maintained a Buy rating on Apogee Therapeutics Inc. (NASDAQ:APGE) on October 10, keeping the associated price target at $115.
The analyst based the optimistic rating on the company’s promising clinical developments, along with the potential of its APG777, especially to treat asthma, atopic dermatitis, and eosinophilic esophagitis.
According to Harrison, the expected best-in-class features associated with APG777 and the clinical data’s narrowing timelines are prominent factors suggesting considerable upside potential for Apogee Therapeutics Inc. (NASDAQ:APGE).
The firm added that the ongoing data updates and trials, when coupled with the anticipated confirmation of APG777’s safety profile and efficacy, further support the Buy rating.
Apogee Therapeutics Inc. (NASDAQ:APGE) is a biotechnology company that offers treatments for chronic obstructive pulmonary disease (COPD), atopic dermatitis (AD), and associated inflammatory and immunology (I&I) indications.
6. Ocular Therapeutix Inc. (NASDAQ:OCUL)
Analyst Upside: 67.57%
Number of Hedge Fund Holders: 27
Ocular Therapeutix Inc. (NASDAQ:OCUL) is one of the best healthcare stocks with the highest upside. Ocular Therapeutix Inc. (NASDAQ:OCUL) received a rating update from H.C. Wainwright on October 8. The firm raised its price target on the stock to $19 from $15 and maintained a Buy rating on the shares.
The price target increase came after Ocular Therapeutix Inc. (NASDAQ:OCUL) announced that the FDA granted a Special Protocol Assessment (SPA) for its planned registrational program of AXPAXLI for the treatment of non-proliferative diabetic retinopathy (NPDR).
Ocular Therapeutix Inc. (NASDAQ:OCUL) reported on its investor day the design of HELIOS-2 and HELIOS-3, which are two Phase 3 superiority trials in NPDR.
HELIOS-2 is a two-arm superiority trial focused on the evaluation of a single AXPAXLI injection compared to a single ranibizumab injection, while HELIOS-3 is a three-arm superiority trial comparing two dosing regimens of AXPAXLI to sham.
The firm told investors that it updated its model to take into account the potential sales of AXPAXLI in NPDR, expecting the firm’s market value at $3.97 billion, or $19 per share.
Ocular Therapeutix Inc. (NASDAQ:OCUL) is a biopharmaceutical company that develops and commercializes therapies for conditions and diseases related to the eye. The company’s product pipeline includes Dextenza, OTX-TP, and OTX-TIC.
5. Soleno Therapeutics, Inc. (NASDAQ:SLNO)
Analyst Upside: 77.33%
Number of Hedge Fund Holders: 52
Soleno Therapeutics, Inc. (NASDAQ:SLNO) is one of the best healthcare stocks with the highest upside. Goldman Sachs initiated coverage of Soleno Therapeutics, Inc. (NASDAQ:SLNO) on October 7 with a Buy rating, assigning the stock a $125 price target.
The analyst told investors that Goldman Sachs expects Soleno Therapeutics, Inc.’s (NASDAQ:SLNO) Vykat XR to become a “foundational treatment” for Prader-Willi syndrome.
According to the firm, the drug should expand into a blockbuster franchise, and the recent pullback provides investors with an attractive entry point into Soleno Therapeutics, Inc.’s (NASDAQ:SLNO) shares.
Soleno Therapeutics, Inc. (NASDAQ:SLNO) is a clinical-stage biopharmaceutical company that develops and commercializes novel therapeutics to treat rare diseases. The company focuses on the treatment of neurobehavioral and metabolic disorders. Its lead candidate, Diazoxide Choline Controlled-Release (DCCR), is an oral tablet that treats Prader-Willi Syndrome (PWS).
4. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
Analyst Upside: 78.94%
Number of Hedge Fund Holders: 58
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is one of the best healthcare stocks with the highest upside. In a report released on October 14, Cantor Fitzgerald analyst Olivia Brayer reiterated a Buy rating for BioMarin Pharmaceutical Inc. (NASDAQ:BMRN). However, the analyst slashed the firm’s price target on the stock from $90 to $80.
J.P. Morgan analyst Jessica Fye also maintained a Buy rating on BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) on October 9, setting a price target of $119.
In other developments, BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) announced new data from 14 studies on September 8, presenting it at the American Society for Bone and Mineral Research 2025 (ASBMR) Annual Meeting in Seattle.
The presentation included results showing that treatment with VOXZOGO® (vosoritide) resulted in “anatomical improvements in spinal morphology in young children”, along with “continued efficacy in children who received the medicine after the onset of puberty”.
Following this update, BMO Capital analyst Kostas Biliouris maintained a Buy rating on the stock, keeping the price target at $115 and supporting the optimistic outlook with BioMarin Pharmaceutical Inc.’s (NASDAQ:BMRN) promising growth prospects.
The analyst cited the potential expansion of Palynziq into the adolescent market as a key driver for BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), potentially increasing its market share.
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) develops and commercializes therapies for serious and life-threatening medical conditions and rare diseases. The company’s product pipeline includes Valoctocogene roxaparvovec, Vosoritide, and BMN 307.
3. Corcept Therapeutics Incorporated (NASDAQ:CORT)
Analyst Upside: 79.01%
Number of Hedge Fund Holders: 35
Corcept Therapeutics Incorporated (NASDAQ:CORT) is one of the best healthcare stocks with the highest upside. Corcept Therapeutics Incorporated (NASDAQ:CORT) received a rating update from H.C. Wainwright analyst Swayampakula Ramakanth on October 10, who assigned a Buy rating to the stock with a price target of $145.
The analyst cited the October 1 announcement by specialty pharmacy Curant Rare regarding its selection as a distributor for Korlym by Corcept Therapeutics Incorporated (NASDAQ:CORT). Optime Care, the exclusive pharmacy that has been distributing Korlym since the drug’s launch a decade ago, announced on October 9 the cessation of its distribution of Korlym after the loss of exclusivity.
Ramakanth stated that while these factors delay management’s plans to operate at least two pharmacies by the end of the year, he views these developments as “a fleeting wrinkle” and recommends buying the stock on any weakness.
Corcept Therapeutics Incorporated (NASDAQ:CORT) is a biopharmaceutical company that develops and commercializes therapies that adjust the effects of cortisol, a hormone that regulates various bodily functions. The company’s flagship product, Korlym, is FDA-approved for treating Cushing’s syndrome, a disorder caused by excessive cortisol production.
2. Legend Biotech Corporation (NASDAQ:LEGN)
Analyst Upside: 122.42%
Number of Hedge Fund Holders: 39
Legend Biotech Corporation (NASDAQ:LEGN) is one of the best healthcare stocks with the highest upside. J.P. Morgan analyst Jessica Fye reiterated a bullish stance for Legend Biotech Corporation (NASDAQ:LEGN) on October 9, setting a $76 price target.
Similarly, TD Cowen analyst Yaron Werber also maintained a Buy rating on the stock on October 3, keeping the associated price target at $62.00. The analyst supported the optimistic rating with the company’s future growth potential and strategic positioning.
He stated that while Legend Biotech Corporation (NASDAQ:LEGN) is experiencing supply constraints with its Carvykti product at present, management is confident about the company’s potential to overcome these limitations by the end of 2025, supported by planned capacity expansions at key sites.
According to him, this confidence can be seen in Legend Biotech Corporation’s (NASDAQ:LEGN) expectations to meet the consensus sales target of $1.9 billion for the fiscal year 2025.
Legend Biotech Corporation (NASDAQ:LEGN) is a clinical-stage company that develops, discovers, manufactures, and commercializes novel therapies for oncology and other indications. It develops advanced cell therapies across an elaborate range of technology platforms. The company operates in the US, China, and other geographical segments.
1. Viking Therapeutics, Inc. (NASDAQ:VKTX)
Analyst Upside: 184.74%
Number of Hedge Fund Holders: 43
Viking Therapeutics, Inc. (NASDAQ:VKTX) is one of the best healthcare stocks with the highest upside. Viking Therapeutics, Inc. (NASDAQ:VKTX) received a Buy rating from Oppenheimer’s Jay Olson on October 7, who assigned a $100 price target to the stock’s shares.
H.C. Wainwright analyst Joseph Pantginis also reiterated a bullish stance on Viking Therapeutics, Inc. (NASDAQ:VKTX) on September 22, giving the stock a Buy rating with a $102 price target.
The analyst supported the rating with Viking Therapeutics, Inc.’s (NASDAQ:VKTX) promising market position, stating that the company’s competitive efficacy and safety data from its oral and subcutaneous GLP-1 programs take the lead as its notable strengths.
He stated that these programs position Viking Therapeutics, Inc. (NASDAQ:VKTX) as a promising candidate for potential mergers and acquisitions while also reflecting the company’s strong pipeline.
Although Viking Therapeutics, Inc. (NASDAQ:VKTX) operates in a competitive landscape, Pantginis expressed optimism regarding its prospects, adding that the present debates associated with execution and competition fail to overshadow the strategic opportunities and potential growth that Viking Therapeutics, Inc. (NASDAQ:VKTX) presents. Viking Therapeutics, Inc. (NASDAQ:VKTX) is a clinical-stage company that develops therapies for metabolic and endocrine disorders.
While we acknowledge the potential of VKTX 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 VKTX and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
Hedge Fund Resource Center