5 Healthcare Stocks With Strong Buy Ratings for 2025

Investors can consider five healthcare stocks with Strong Buy ratings and price targets suggesting over 15% upside potential in the next 12 months. These include UnitedHealth, Thermo Fisher, Abbott Laboratories, Summit Therapeutics, and Sarepta Therapeutics, which offer reliable dividend payouts, growth prospects, and low correlation with global macro conditions. The stocks have average price targets ranging from 18.5% to 94% upside potential and Smart Scores of 8, 9, or 10 on TipRanks.

The healthcare sector has been a reliable investment option in uncertain economic conditions due to its low correlation with global macro factors and consistent demand for healthcare services. According to analysts at TipRanks, these five healthcare stocks have received Strong Buy ratings and offer significant upside potential in the next 12 months.

1. UnitedHealth Group (NYSE: UNH): With a market capitalization of over $300 billion, UnitedHealth is a leading diversified healthcare company. Its Strong Buy rating from analysts and a price target of $599.33 suggest a potential upside of nearly 28%. UnitedHealth's broad portfolio includes insurance, healthcare services, and pharmacy benefits, making it less susceptible to economic downturns.

2. Thermo Fisher Scientific (TMO): Thermo Fisher is a global leader in serving science, with a Strong Buy rating from analysts and an average price target of $597.68. This implies a potential upside of 24%. The company's wide range of products and services in areas such as life sciences, diagnostics, and research tools positions it well for growth.

3. Abbott Laboratories (ABT): Abbott is a global healthcare leader with a Strong Buy rating from analysts and a price target of $114.30. This implies a potential upside of 15%. The company offers a diverse range of products and services, including diagnostics, medical devices, and nutritional products.

4. Summit Therapeutics (SMMT): Summit Therapeutics is a clinical-stage biopharmaceutical company focused on developing therapies for genetic disorders. With a Strong Buy rating from analysts and a price target of $20.00, the stock offers a potential upside of 100%. The company's lead product candidate, UBL1, is currently in late-stage clinical trials for the treatment of Duchenne muscular dystrophy.

5. Sarepta Therapeutics (SRPT): Sarepta is a leading gene therapy company focused on developing and commercializing therapies for rare genetic diseases. With a Strong Buy rating from analysts and a price target of $165.00, the stock offers a potential upside of 84%. Sarepta's lead product, Exondys 51, is approved for the treatment of Duchenne muscular dystrophy.

Investors should note that while these stocks offer significant growth potential, they also carry risks. It is essential to conduct thorough research and consider consulting with a financial advisor before making investment decisions.

Sources:
[1] https://www.nasdaq.com/articles/5-best-healthcare-stocks-to-invest-in-now-according-to-analysts
[2] https://www.nasdaq.com/articles/5-healthcare-stocks-to-buy-now-according-to-analysts-august-2023