As 2026 draws near, the healthcare sector remains a focal point for investors, highlighted by a recent analysis from JPMorgan. The firm has identified several undervalued stocks within the sector, emphasizing their potential for growth despite broader economic uncertainties. On December 5, analysts at JPMorgan published insights detailing three key reasons for their renewed optimism in healthcare: easing policy pressures, clearer earnings trajectories, and a rise in merger and acquisition activity.
This strategic pivot comes as the healthcare market demonstrates resilience and adaptability post-pandemic. The analysts noted that these factors position the sector favorably for a constructive outlook in the coming years. They concluded, “After years of headwinds, the healthcare sector is showing signs of stabilization and renewed momentum.”
With this perspective in mind, here are twelve healthcare stocks deemed attractive as 2026 approaches.
Top Healthcare Stocks with Growth Potential
1. **ICON Public Limited Company (NASDAQ:ICLR)**
**Upside Potential:** 14.87%
**Current Share Price:** $185.87
**Analyst Coverage:** 43 hedge fund holders
Following a recent management call, BMO Capital maintained a ‘Market Perform’ rating and a price target of $175, focusing on the company’s efforts to enhance automation and AI capabilities. Analysts generally hold a positive view, with a median price target of $213.50, reflecting nearly 15% upside potential.
2. **Lantheus Holdings, Inc. (NASDAQ:LNTH)**
**Upside Potential:** 18.48%
**Current Share Price:** $63.30
**Analyst Coverage:** 35 hedge fund holders
Nearly 80% of analysts suggest a ‘Buy’ rating for Lantheus Holdings. Recent financial results showed mixed performance, yet the potential for significant upside remains, with a median price target of $75.
3. **Elevance Health, Inc. (NYSE:ELV)**
**Upside Potential:** 19.12%
**Current Share Price:** $330.75
**Analyst Coverage:** 82 hedge fund holders
Elevance Health garnered attention from TD Cowen, which increased its price target to $400, marking it as a “Best Idea for 2026.” The stock’s growth prospects are supported by a consensus EPS estimate of $27.25.
4. **The Cigna Group (NYSE:CI)**
**Upside Potential:** 22.44%
**Current Share Price:** $265.44
**Analyst Coverage:** 78 hedge fund holders
TD Cowen reaffirmed a ‘Buy’ rating with a price target of $333, suggesting strong potential due to a decade-low valuation. The company’s innovative pharmacy benefit management model is expected to drive further growth.
5. **CVS Health Corporation (NYSE:CVS)**
**Upside Potential:** 22.97%
**Current Share Price:** $75.63
**Analyst Coverage:** 78 hedge fund holders
Analysts at Bernstein have raised the price target to $86, noting CVS’s effective turnaround strategies, particularly within its Aetna unit. Concerns surrounding the pharmacy benefit manager segment remain, but overall sentiment is cautiously optimistic.
6. **Sanofi (NASDAQ:SNY)**
**Upside Potential:** 23.16%
**Current Share Price:** $49.53
**Analyst Coverage:** 32 hedge fund holders
Following its acquisition of Vicebio Ltd., Sanofi is poised to enhance its vaccine development capabilities. With a median price target of $61, the stock presents a substantial growth opportunity.
7. **Novo Nordisk A/S (NYSE:NVO)**
**Upside Potential:** 29.57%
**Current Share Price:** $47.86
**Analyst Coverage:** 50 hedge fund holders
With plans to launch its diabetes drug Ozempic in India, Novo Nordisk is expanding its footprint in a rapidly growing market. Analysts remain bullish, with a median price target of $62.
8. **Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX)**
**Upside Potential:** 48.75%
**Current Share Price:** $23.53
**Analyst Coverage:** 34 hedge fund holders
Catalyst Pharmaceuticals has received strong support from analysts, with a consensus ‘Buy’ rating and a median price target of $35. The company is focused on expanding its oncology treatments.
9. **Concentra Group Holdings Parent, Inc. (NYSE:CON)**
**Upside Potential:** 48.95%
**Current Share Price:** $19.47
**Analyst Coverage:** 23 hedge fund holders
Following promising third-quarter results, Concentra Group is gaining traction with a median price target of $29. The CEO noted significant growth in revenue and patient volumes.
10. **BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)**
**Upside Potential:** 70.41%
**Current Share Price:** $53.40
**Analyst Coverage:** 54 hedge fund holders
Despite a recent downgrade, BioMarin maintains a majority ‘Buy’ rating among analysts. The company’s focus on rare diseases positions it well, with a median price target suggesting substantial upside.
11. **Prestige Consumer Healthcare Inc. (NYSE:PBH)**
**Upside Potential:** 31.54%
**Current Share Price:** $60.82
**Analyst Coverage:** 24 hedge fund holders
Prestige Consumer’s strategic innovations and international growth initiatives are expected to drive performance, with a median price target of $80.
12. **Soleno Therapeutics, Inc. (NASDAQ:SLNO)**
**Upside Potential:** 114.13%
**Current Share Price:** $51.37
**Analyst Coverage:** 58 hedge fund holders
With a consensus ‘Buy’ rating, Soleno is highlighted for its recent FDA approval of Vykat XR, creating significant growth potential. Analysts see this as a transformative period for the company.
As the healthcare sector evolves, these stocks demonstrate strong potential for investors looking to capitalize on emerging opportunities in the market. Analysts recommend keeping a close watch on these companies as 2026 approaches, particularly in light of the sector’s evolving landscape and ongoing innovations.
