Healthcare stocks tend to be resilient during economic downturns, as spending on medicines and medical treatments is often considered essential. However, the possibility of huge tariffs under the Trump administration is seen as a major threat for many players in the healthcare space. Nonetheless, Wall Street is bullish on the prospects of several healthcare stocks, given their strong growth potential and solid execution. Using TipRanks’ Stock Comparison Tool, we placed Hims & Hers (HIMS), Eli Lilly (LLY), and Tempus AI (TEM) against each other to determine the best healthcare stock, according to Wall Street analysts.
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Hims & Hers Health (NYSE:HIMS) Stock
Hims & Hers Health stock has rallied more than 108% year-to-date, as the telehealth platform has impressed investors with its strong online revenue, subscriber growth, and efforts to expand globally.
However, Hims & Hers recently faced a setback when Danish drugmaker Novo Nordisk (NVO) terminated its partnership with the company, accusing the former of illegally selling knockoff versions of its weight loss drug Wegovy and deceptive marketing practices. Meanwhile, HIMS blamed the pharma giant for the fallout. Hims & Hers is now facing legal trouble related to this short-lived partnership.
Looking ahead, HIMS continues to expand beyond the domestic market and recently announced its plans to offer its affordable weight loss program in Canada next year. Interestingly, the company’s entry into Canada will coincide with Novo Nordisk’s loss of patent protection on its branded semaglutide drugs Ozempic and Wegovy in Canada due to the non-payment of a maintenance fee in 2019.
Is HIMS Stock a Good Buy?
Following the news on Canada expansion, Citi analyst Daniel Grosslight reiterated a Sell rating on Hims & Hers stock with a price target of $30. The 4-star analyst noted that following the recently announced acquisition of Zava, a European telehealth platform, HIMS is further expanding internationally by rolling out its weight loss program in Canada next year. Grosslight added that the company’s offering is timed to coincide with the introduction of generic semaglutide in the Canadian market.
That said, Grosslight pointed out that compared to the U.S. market, branded semaglutide is relatively affordable in Canada (C$200 per month) and generics will likely be significantly cheaper. Consequently, there is less of a “pricing arbitrage” opportunity for Hims & Hers in Canada. “Rather, we think HIMS will flex its marketing muscle to appeal to Canadians who are looking for relatively easy access to generic semaglutide,” said Grosslight. The analyst thinks that much will depend on the program’s pricing, which Hims & Hers Health has not yet announced.
Currently, Wall Street has a Hold consensus rating on Hims & Hers Health stock based on seven Holds, two Sells, and one Buy recommendation. The average HIMS stock price target of $41.78 implies a 17% downside risk.
Eli Lilly (NYSE:LLY) Stock
Eli Lilly stock is flat on a year-to-date basis, as concerns over potential tariffs loom large. U.S. President Donald Trump has threatened to impose tariffs of up to 200% on pharmaceutical imports. Given that a significant portion of the ingredients used in prescription drugs in the U.S. are imported, the Trump administration is focused on boosting domestic manufacturing.
Although Trump intends to give some time (“about a year, year and a half”) to pharma companies to move manufacturing to the U.S., several analysts are concerned that tariffs would increase production costs and impact margins.
Despite tensions surrounding tariffs, most analysts remain bullish on Eli Lilly stock, mainly due to the strong prospects of the company’s weight loss and diabetes drugs. In Q1 2025, Eli Lilly’s blockbuster diabetes treatment Mounjaro generated $3.84 billion in revenue, reflecting a 113% year-over-year growth. Meanwhile, LLY’s weight loss drug Zepbound witnessed a jump in its Q1 sales from $517.4 million in the prior-year quarter to $2.31 billion.
Is Eli Lilly Stock a Buy, Sell, or Hold?
Eli Lilly is scheduled to announce its second-quarter results on August 7. Analysts expect the company’s earnings per share (EPS) to surge by about 43% year-over-year to $5.56. The Street expects the company to deliver revenue of $14.58 billion, reflecting a growth of about 29%.
Ahead of the Q2 results, JPMorgan analyst Chris Schott reiterated a Buy rating on Eli Lilly stock with a price target of $1,100. Schott expects LLY to deliver “solid” Q2 results, with upside to Mounjaro and Zepbound estimates based on strong TRx (total prescriptions) growth trends. The analyst’s Q2 revenue estimate of $14.8 billion is higher than the consensus, but the EPS forecast of $5.49 is below the Street’s estimate, as he expects a continued ramp in Eli Lilly’s operating expenses to support a growing late-stage pipeline and direct-to-consumer (DTC) initiatives.
Turning to Wall Street, Eli Lilly stock scores a Strong Buy consensus rating based on 16 Buys, two Holds, and one Sell recommendation. The average LLY stock price target of $1,002.88 indicates about 30% upside potential from current levels.
Tempus AI (NASDAQ:TEM) Stock
Tempus AI stock has rallied 81% year-to-date. The company leverages artificial intelligence (AI) to advance precision medicine. It uses more than 40 million research records to power scientific discovery.
Notably, Tempus AI has been growing at an impressive rate. In Q1 2025, Tempus AI reported a 75.4% year-over-year growth in revenue to $255.7 million. Given the strong momentum in its business, Tempus AI raised its full-year revenue guidance to $1.25 billion, projecting an 80% growth. The company expects to deliver a positive adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $5 million for the full year 2025, reflecting an increase of $110 million over 2024.
Is Tempus AI a Good Stock to Buy?
In May, short seller Spruce Point accused Tempus AI of engaging in aggressive and suspicious accounting practices, stating that it is “run by leaders who have a dubious history.” Reacting to the short seller’s accusations, TD Cowen analyst Daniel Brennan noted that the report mentioned many issues that were mostly known, some aspects seemed exaggerated, and some new ones are worth exploring. Despite the short seller’s allegations, Cowen reiterated a Buy rating on Tempus AI stock with a price target of $62.
Overall, Wall Street has a Moderate Buy consensus rating on Tempus AI stock based on five Buys and three Holds. The average TEM stock price target of $68.86 indicates about 13% upside potential from current levels.
Conclusion
Wall Street is highly bullish on Eli Lilly stock, cautiously optimistic on Tempus AI, and sidelined on Hims & Hers stock. Currently, analysts see higher upside potential in LLY stock than in the other two healthcare stocks. Wall Street is bullish on Eli Lilly’s growth potential, backed by its strong portfolio of weight loss and diabetes drugs, as well as a robust pipeline.