BTIG Names Top Healthcare Stock Picks for Second Half of 2026

Investment firm BTIG has identified its top healthcare stocks for the second half of 2026, outlining a list of high-conviction ideas with a 12-month investment horizon. The selections span medical devices, specialty healthcare services, and clinical-stage biopharmaceutical firms chosen for their near-term catalysts and strong growth potential, according to the firm's latest report.

Established Leaders and Growth Plays

BTIG reiterated its confidence in several large-cap healthcare names, citing consistent performance and market leadership. Edwards Lifesciences (EW) remains a top selection due to strong demand for its transcatheter aortic valve replacement (TAVR) products, with the firm modeling approximately 7% year-over-year sales growth for the business in the second half of 2026.

Guardant Health (GH), a leader in liquid biopsy testing, was carried over as a top pick from previous periods. BTIG noted the company's recent FDA approval for its G360CDx test and a 63% increase in its Medicare reimbursement rate for the Guardant Shield test, which the firm believes gives it a two-year first-mover advantage. BrightSpring Health Services (BTSG) was also highlighted for its 25% year-over-year pharmacy revenue growth in the first quarter of 2026 and its guidance for a 15-20% compound annual growth rate in adjusted EBITDA through 2028.

Spotlight on SMID-Caps and Clinical Catalysts

The report also focused on small- and mid-cap (SMID-Cap) companies and biotechs approaching significant milestones. ICU Medical (ICUI) was named BTIG's SMID-Cap Top Pick, with analysts noting its attractive valuation as the integration of Smiths Medical nears completion. The stock trades at approximately 15 times BTIG’s 2027 adjusted EPS estimate, well below its historical average of 25 times, the report stated.

Ad

Several clinical-stage companies were selected based on upcoming data readouts and pipeline developments:

• Perspective Therapeutics (CATX): Chosen ahead of a "catalyst-rich" second half of 2026, with data expected from three clinical programs. Its lead therapy showed a 43% objective response rate in a recent update, compared to an 18% rate for a key competitor.
• Cartesian Therapeutics (RNAC): BTIG anticipates growing interest ahead of Phase 3 data in the first quarter of 2027 for its myasthenia gravis treatment. The company recently secured a credit facility of up to $150 million, extending its cash runway into 2028.
• Jasper Therapeutics (JBIO): Analysts view recent stock weakness as a buying opportunity, citing promising Phase 1 data for its IgA nephropathy treatment in a market estimated to be worth over $20 billion in the U.S. alone.

Broader Sector Coverage

BTIG's selections underscore a focus on companies with clear, near-term drivers, ranging from post-merger synergies and margin expansion to pivotal clinical trial results. The firm's list of top picks for the second half also included BillionToOne (BLLN), The Oncology Institute (TOI), Faeth Therapeutics (FTH), iRhythm Technologies (IRTC), Harrow (HROW), Praxis Precision Medicines (PRAX), Zevra Therapeutics (ZVRA), Solventum (SOLV), and Glaukos (GKOS).