3 New Strong Buy Ratings from Top-Rated Analysts: 05/05/2026

Need some investing inspo? Start with these 3 picks, sourced from our most popular screener:

• Eli Lilly & Co (LLY) — GLP-1 dominance fuels record-breaking obesity drug momentum.
• Cardinal Health Inc (CAH) — Dividend hike and earnings beat signal continued strength.
• Dexcom Inc (DXCM) — CGM leader posts Q1 beat with expanding margins.

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1. Cardinal Health Inc (NYSE: CAH)

Cardinal Health supplies 75% of U.S. hospitals and reigns atop the Medical Distribution industry. Fresh off a dividend hike and a Q3 earnings beat, management raised full-year guidance — fueling what analysts are calling the "Golden Era" of healthcare distribution.

Zen Rating: A (Strong Buy) — see full analysis

Recent Price: $195.24 — get current quote

Max 1-year forecast: $258.00

Why we're watching:

• Analyst support: Strong consensus with 5 Strong Buy ratings, 2 Buy ratings, and only 1 Hold rating among 8 analysts covering the stock. See the ratings
• Morgan Stanley's Erin Wright (a top 6% rated analyst) maintains a Strong Buy rating with a $245 price target, predicting that the "Golden Era" of healthcare distribution will continue with group multiple expansion visible against a "robust backdrop" in which the group enjoys "relative policy insulation."
• JP Morgan's Lisa Gill (a top 18% rated analyst) holds a $243 price target, noting the company's strategic positioning within a favorable regulatory environment and improving distribution economics.
• Analysts recently maintained their bullish stance following CAH's Q3 earnings beat, with the company raising its FY 2026 EPS outlook despite a slight revenue miss, demonstrating strong operational execution and margin expansion.
• Industry ranking context: CAH is currently the 1st highest-rated stock in the Medical Distribution industry, which has an Industry Rating of A.
• Zen Rating highlights: CAH is in the highest tier of stocks we track based on a 115-factor due diligence review, earning an overall rating of A (Strong Buy).
• Component Grades: CAH shows balanced strength with A-grade Sentiment, B-grades in Growth and Safety, reflecting strong analyst confidence, solid growth trajectory, and financial stability in a defensive healthcare sector. See all 7 Zen Component Grades here

2. Dexcom Inc (NASDAQ: DXCM)

With a $23.67B market cap and industry-leading continuous glucose monitoring (CGM) technology, DexCom is transforming diabetes care worldwide. A Q1 2026 earnings and revenue beat — paired with expanding margins and reaffirmed guidance — proves demand for its innovative devices isn't slowing down.

Zen Rating: A (Strong Buy) — see full analysis

Recent Price: $61.35 — get current quote

Max 1-year forecast: $100.00

Why we're watching:

• Analyst support: Overwhelming bullish sentiment with 9 Strong Buy ratings, 2 Buy ratings, 1 Hold, and 1 Strong Sell among 13 analysts, demonstrating strong conviction in DXCM's growth trajectory. See the ratings
• Citigroup's Joanne Wuensch (a top 10% rated analyst) maintains a Strong Buy rating with an $84 price target (+36.92% upside), expressing confidence in the company's technological leadership and market expansion potential.
• Mizuho's Anthony Petrone (a top 12% rated analyst) maintains a Buy rating with a $90 price target (+46.70% upside), highlighting the company's innovative product pipeline and strong competitive positioning in the CGM market.
• Truist Securities' Richard Newitter (a top 17% rated analyst) reiterates a Strong Buy with an $80 price target (+30.40% upside), citing DexCom's technological advantages and expanding addressable market as key growth drivers.
• Industry ranking context: DXCM is currently the 8th highest-rated stock in the Medical Device industry, which has an Industry Rating of C, making DXCM a standout performer in its sector.
• Zen Rating highlights: As a Strong Buy-rated stock, DXCM is in a class of stocks that have historically generated over 30% in annual returns. 
• Component Grades: DXCM excels with an A-grade in Financials, and B-grades in Value and AI, reflecting robust financial health and a potentially attractive valuation. See all 7 Zen Component Grades here

3. Eli Lilly & Co (NYSE: LLY)

A $907B pharmaceutical juggernaut, Eli Lilly is dominating the obesity and diabetes race with its blockbuster GLP-1 portfolio. New oral obesity drug launches are widening its competitive moat — prescriptions are surging, and a recent double-beat earnings report cements its market leadership.

Zen Rating: A (Strong Buy) — see full analysis

Recent Price: $963.33 — get current quote

Max 1-year forecast: $1,500.00

Why we're watching:

• Analyst support: Wall Street is decisively bullish with 13 Strong Buy ratings, 4 Buy ratings, and just 1 Sell rating among 18 analysts covering the stock. See the ratings
• Guggenheim's Seamus Fernandez (a top 3% rated analyst) maintains his Strong Buy rating with a $1,183 price target, emphasizing strong fundamentals underpinning LLY's valuation following the company's innovative drug pipeline and positive FDA outlook.
• Morgan Stanley's Terence Flynn (a top 8% rated analyst) projects a $1,327 price target (+37.75% upside), expressing optimism about LLY's strategic positioning in emerging markets and the company's expansion into new therapeutic areas with innovative therapies.
• RBC Capital's Trung Huynh (a top 10% rated analyst) recently initiated coverage with a Buy rating and $1,250 price target, highlighting LLY's robust pipeline as a key driver for future growth, citing R&D breakthroughs and strategic partnerships as major catalysts.
• Industry ranking context: LLY is currently the 3rd highest-rated stock in the General Drug Manufacturer industry, which has an Industry Rating of A.
• Zen Rating highlights: Strong Buy (A) stocks have historically averaged +32.52% returns annually, positioning LLY among elite opportunities with substantial upside potential.
• Component Grades: LLY demonstrates exceptional strength with an A-grade Sentiment component and B-grades in Value, Financials, and Artificial Intelligence, reflecting strong analyst conviction, solid fundamentals, and innovative technological integration. See all 7 Zen Component Grades here

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