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<\/p>\nIn this article, we will be taking a look at the 10 Best Healthcare Stocks to Buy According to Wall Street Analysts.<\/p>\n
The U.S. healthcare sector has significantly lagged the broader market for three consecutive years, returning just 0.3% in 2023, 0.9% in 2024, and 12.5% in 2025. The trend has continued in 2026, with the sector down 1.62% year-to-date compared to the S&P 500\u2019s 10.35% gain.<\/p>\n
Many Wall Street analysts attribute this prolonged weakness to investors\u2019 overwhelming focus on artificial intelligence. In a May 18 article, Gareth Powell, Head of Healthcare at Polar Capital, argued that enthusiasm for AI has diverted capital away from traditionally defensive sectors such as healthcare. Echoing that view, UBS Managing Director and Senior Portfolio Manager Michael Zinn said during a June 8 appearance on BNN Bloomberg that the market\u2019s 2026 rally has largely been a \u201ccatch-up trade\u201d driven by rising expectations for AI infrastructure earnings, leaving healthcare behind.<\/p>\n
The sector\u2019s underperformance has also created a valuation opportunity. Speaking to CNBC on June 7, Mizuho Americas healthcare strategist Jared Holz described healthcare as a value sector, noting that years of heavy investment in technology and AI-related stocks have left healthcare companies trading at more reasonable valuations and facing lower investor expectations. Similarly, SentimenTrader\u2019s Jay Kaeppel argued that healthcare\u2019s unusually weak performance relative to the S&P 500 could signal stronger returns ahead.<\/p>\n
While healthcare struggles to regain investor attention, broader market sentiment remains constructive. During a June 1 appearance on CNBC\u2019s \u201cSquawk Box,\u201d Fundstrat\u2019s Tom Lee highlighted several tailwinds supporting equities, including the continued AI boom. Although he expects market volatility and potential headwinds through December, Lee remains bullish, citing improving market breadth, the possibility of U.S. economic growth accelerating toward 4%, and a three-phase market cycle that could push the S&P 500 closer to 7,700 before a stronger rally emerges after the midterm elections.<\/p>\n
With that said, now let\u2019s take a look at the best healthcare stocks.<\/p>\n
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Our Methodology<\/p>\n
For our\u00a0methodology, we screened for healthcare stocks with a price target upside of at least 20%. From this list, we selected the 10 best stocks based on their\u00a0recent news\u00a0and developments and ranked them in ascending order based on their analyst upside\u00a0as of June 21.<\/p>\n
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. Insider Monkey\u2019s quarterly newsletter\u2019s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here<\/a>).<\/p>\n Here is our list of the 10 best healthcare stocks to buy according to Wall Street analysts.\u00a0<\/p>\n