In this article, we will look at the 10 Best Healthcare Penny Stocks to Buy According to Analysts.
According to the Centers for Medicare & Medicaid Services (CMS), the US healthcare sector accounted for approximately 17.6% of GDP in 2023. National health expenditures reached $4.9 trillion, roughly $14,570 per person, a 7.5% increase from 2022. Despite consuming nearly one-fifth of economic output, a Financial Times analysis suggests that the system underperforms in terms of outcomes relative to its peers.
Analysts at AllianceBernstein report that US healthcare is trading at a “deepest discount to the broader market in nearly 40 years,” with forward P/E multiples about 20% below historic averages. Morningstar concurs, noting valuations are now “cheapest in over five years.” Fidelity’s Eddie Yoon observes that while the sector lagged in 2024, “valuations across the sector have recently come down to attractive levels,” with innovation standing to support future gains.
However, macro pressures persist: rising Treasury yields and tougher cost containment are squeezing margins across hospitals and insurers, according to IMPAX Asset Management. Meanwhile, the CMS projects that health spending will grow at an average annual rate of 5.8% through 2033, outpacing GDP and pushing healthcare’s share of GDP above 20% by that time.
Against this backdrop of high expenditures, discounted valuations, and escalating structural cost pressures, analysts highlight healthcare as a favored hunting ground for deeply undervalued, high-upside plays. This includes penny stocks in biotech, diagnostics, and digital health.
A healthcare professional using a digital device to provide a health risk assessment to a patient.
Our Methodology
To create this list, we used the Finviz screener to identify the initial pool of stocks. We filtered for companies listed in the United States and with a stock price less than $5 as of June 27. We then checked the analyst upside potential (as of June 27) for each stock, and chose the top 10 with the highest upside potential. We also considered the number of hedge fund holders for each company as of the first quarter of 2025. The hedge fund data was sourced from Insider Monkey’s database. The ranking of the list is in ascending order based on analyst upside.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Best Healthcare Penny Stocks to Buy According to Analysts
10. Evotec SE (NASDAQ:EVO)
Stock Price as of June 27: $4.22
Analyst Upside Potential as of June 27: 42.18%
Number of Hedge Fund Holders as of Q1 2025: 1
Evotec SE (NASDAQ:EVO) is one of the 10 best healthcare penny stocks to buy according to analysts. On June 25, the company said it would participate in the NURTuRE-AKI consortium to investigate acute kidney injury (AKI) and advance drug discovery through multi-omics approaches.
The NURTuRE-AKI consortium aims to establish the world’s largest patient cohort database for AKI with twofold objectives: to enhance understanding of its molecular mechanisms and accelerate drug discovery. The consortium is supported by £4.7 million from industry partners, including Evotec, AstraZeneca (NASDAQ:AZN), and Nephrolyx GmbH, facilitated by Kidney Research UK. Professor Nick Selby, a key researcher, oversees the AKI research efforts within the NURTuRE initiative.
Besides helping fund the consortium, Evotec will integrate the consortium’s data into its proprietary E.MPD platform. The company will also conduct state-of-the-art omics analyses to identify core biological mechanisms, molecular targets, and biomarkers for AKI. Ultimately, the partnership enables Evotec to conduct targeted drug discovery by leveraging molecular insights into the progression of AKI.
Evotec SE (NASDAQ:EVO) is a German biotechnology company. It operates as a drug discovery and development partner for pharmaceutical and biotech firms worldwide. Its two main segments are Shared R&D, which offers integrated research services, and Just–Evotec Biologics, which provides biologics development and manufacturing.
9. Akebia Therapeutics, Inc. (NASDAQ:AKBA)
Stock Price as of June 27: $3.74
Analyst Upside Potential as of June 27: 87.17%
Number of Hedge Fund Holders as of Q1 2025: 19
Akebia Therapeutics, Inc. (NASDAQ:AKBA) is one of the 10 best healthcare penny stocks to buy according to analysts. On June 2, the company reported that it had granted options to purchase an aggregate of 137,000 shares of its common stock to three newly hired employees on May 30, 2025.
These options were given as inducement material to each employee entering into employment with Akebia. The company stated that the grants were made per Nasdaq Listing Rule 5635(c)(4). Also, the exercise price for the options is $3.03 per share, which was the closing price of the company’s common stock on the grant date.
The stock options vest over a four-year period, with 25% of the shares vesting on the first anniversary of the grant date. The remaining 75% will vest quarterly thereafter, provided the new employee remains with Akebia. The options are the latest after Akebia granted 148,000 shares of its common stock to eight newly hired employees on April 30, 2025.
Akebia Therapeutics, Inc. (NASDAQ: AKBA) is a biopharmaceutical company focused on developing treatments for kidney-related diseases. It develops and sells two main products: Auryxia, used to manage phosphorus levels and treat iron deficiency anemia in patients with chronic kidney disease (CKD), and Vafseo, an oral medication for anemia associated with CKD.
