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.
8. Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI)
Stock Price as of June 27: $2.38
Analyst Upside Potential as of June 27: 93.28%
Number of Hedge Fund Holders as of Q1 2025: 29
Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) is one of the 10 best healthcare penny stocks to buy according to analysts. On June 26, William Blair reaffirmed its “Market Perform” rating for Maravai stock. The key factor influencing this move is the leadership changes at Maravai.
Maravai has undergone a complete leadership overhaul since December last year. In December 2024, the company brought in Andy Eckert as the new independent Chairman of the Board. Later, Maravai installed Bernd Brust as CEO, replacing Trey Martin. Then, on June 25, a new press release indicated that Rajesh “Raj” Asarpota would assume the position of Executive Vice President and Chief Financial Officer, effective June 30.
According to William Blair, Brust and Asarpota are joining Maravai’s top-level management when the company is undergoing “a challenging operational transition period.” The analysts noted that the company “faces approximately $66 million in headwinds in 2025 from declining COVID-related revenues.” As such, the analysts are optimistic that the fresh hands at Maravai’s helm will inject more momentum into the transition.
Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) is a life sciences company. It provides specialized products that support the development of vaccines, drug therapies, diagnostics, and cell and gene therapies. Its operations span two segments: Nucleic Acid Production and Biologics Safety Testing.
7. OPKO Health, Inc. (NASDAQ:OPK)
Stock Price as of June 27: $1.32
Analyst Upside Potential as of June 27: 108.33%
Number of Hedge Fund Holders as of Q1 2025: 26
OPKO Health, Inc. (NASDAQ:OPK) is one of the 10 best healthcare penny stocks to buy according to analysts. On June 25, the company, in partnership with Entera Bio Ltd., announced that new data for their investigational oral OPK-88006 tablet treatment has been selected for presentation at ENDO 2025.
ENDO 2025 is the 2025 chapter of the Endocrine Society’s annual meeting. OPKO will use the occasion to present the medication (OPK-88006) that targets indications like obesity, metabolic disorders, and fibrotic disorders. The drug is being developed as a proprietary novel dual agonist GLP-1/glucagon peptide. It is intended as a once-daily tablet treatment and also as a weekly subcutaneous injection for patients with obesity, metabolic, and fibrotic disorders. The presentation will feature new in vivo data demonstrating the drug’s pharmacologic effects and pharmacokinetic profile.
According to Miranda Toledano, CEO of Entera, oral peptides are rare in metabolic therapy. Therefore, having both tablet and injectable formats could allow for tailored induction and maintenance regimens. The once-daily tablet may offer simpler titration and tolerability benefits, prioritizing durable, sustainable weight loss to help prevent comorbidities such as severe fatty liver disease and sleep apnea.
OPKO Health, Inc. (NASDAQ:OPK) is a diversified healthcare company. It develops and commercializes pharmaceuticals, diagnostics, and multispecific antibody therapies for serious diseases like cancer, infectious diseases, and metabolic disorders. Its key businesses include BioReference Health, one of the largest US clinical laboratories, and ModeX Therapeutics, which focuses on next-generation immunotherapies.
6. Ardelyx, Inc. (NASDAQ:ARDX)
Stock Price as of June 27: $3.69
Analyst Upside Potential as of June 27: 208.82%
Number of Hedge Fund Holders as of Q1 2025: 28
Ardelyx, Inc. (NASDAQ:ARDX) is one of the 10 best healthcare penny stocks to buy according to analysts. On June 2, the company announced two key appointments to its leadership team. Mike Kelliher, who joined the company in March 2024, was promoted from his previous role as Executive Vice President, Corporate Development and Strategy to Chief Business Officer (CBO). James P. Brady joined Ardelyx as the new Chief Human Resources Officer (CHRO). Both Kelliher and Brady report directly to Mike Raab, the company’s President and CEO.
Ardelyx said that these appointments are part of its strategy to strengthen its leadership team. The move, the company stated, is crucial to advancing its commercial and clinical programs.
“As we continue to grow and evolve our business, it is imperative that we have high caliber leaders, like Mike and Jamie, who will enable us to accelerate our momentum and deliver long-term impact for patients and shareholders,” said Raab.
The CEO highlighted Kelliher’s experiences, business intuition, and leadership as bringing “incredible value” to Ardelyx. On the other hand, he expressed excitement about welcoming Brady, emphasizing his talent as an HR executive and his extensive experience in people development, which will be influential in advancing key business initiatives and talent strategies.
Ardelyx, Inc. (NASDAQ:ARDX) is a biopharmaceutical company. It discovers, develops, and commercializes first-in-class medicines for gastrointestinal and kidney diseases. Its key products include IBSRELA (for irritable bowel syndrome with constipation) and XPHOZAH (a phosphate absorption inhibitor for chronic kidney disease patients on dialysis). Ardelyx serves adult patients in the United States and internationally.
5. Sana Biotechnology, Inc. (NASDAQ:SANA)
Stock Price as of June 27: $2.87
Analyst Upside Potential as of June 27: 222.30%
Number of Hedge Fund Holders as of Q1 2025: 13
Sana Biotechnology, Inc. (NASDAQ:SANA) is one of the 10 best healthcare penny stocks to buy according to analysts. The company’s stock surged 12.1% on June 23 after it announced positive six-month follow-up results from an investigator-sponsored, first-in-human study of its type 1 diabetes treatment.
The therapy in focus is UP421, which consists of cadaver-sourced pancreatic islet cells that have been genetically modified using Sana’s hypoimmune (HIP) technology to evade immune detection. A significant finding is that the transplanted cells were safe, well-tolerated, survived, and continued to produce insulin in the patient without the need for immunosuppressive medicines. The study identified no safety issues, and the HIP-modified islet cells successfully evaded immune responses (both allogeneic and autoimmune).
Per-Ola Carlsson, MD, Study Principal Investigator, Senior Physician, and Professor at the Clinic for Uppsala University Hospital, stated that the consistent results at four-week, 12-week, and now six-month follow-ups continue to suggest that a functional cure for type 1 diabetes without immunosuppression is possible.
Sana Biotechnology, Inc. (NASDAQ:SANA) is a biotechnology company. It develops engineered cell therapies to treat serious diseases, aiming to repair or replace damaged cells. Its platforms include hypoimmune cells, gene delivery, and in vivo cell engineering. Sana’s pipeline targets conditions like cancer, type 1 diabetes, and genetic disorders.
4. Taysha Gene Therapies, Inc. (NASDAQ:TSHA)
Stock Price as of June 27: $2.41
Analyst Upside Potential as of June 27: 246.47%
Number of Hedge Fund Holders as of Q1 2025: 20
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is one of the 10 best healthcare penny stocks to buy according to analysts. On June 13, Cantor Fitzgerald reiterated its “Overweight” rating and $13.00 price target for Taysha.
According to their research note, three key factors played a key role in the analysts’ decision. First, Cantor Fitzgerald’s representatives met with Taysha’s management team at the International Rett Syndrome Foundation (IRSF) Scientific Meeting. The occasion provided an opportunity for the analysts to fine-tune their outlook for the company.
Secondly, the affirmation was based on recent positive Phase 1/2 clinical data and a regulatory update for TSHA-102. TSHA-102 is an adeno-associated virus (AAV)-based gene therapy in development for Rett syndrome. The data presented at the IRSF meeting was a reprise presentation of previously released results.
Third, Cantor Fitzgerald noted strong positive sentiment among stakeholders. The sentiment analyzed includes that of investors and key opinion leaders regarding Taysha’s developments. However, the analysts were quick to acknowledge that the sentiment was not reflected in the stock’s current market valuation.
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is a clinical-stage biotechnology company. It develops AAV-based gene therapies for rare monogenic diseases of the central nervous system. Its lead programs include TSHA-102 for Rett syndrome and TSHA-120 for giant axonal neuropathy, among others, targeting conditions such as CLN1, CLN7, and Angelman syndrome.
3. Nuvation Bio Inc. (NYSE:NUVB)
Stock Price as of June 27: $1.97
Analyst Upside Potential as of June 27: 275.63%
Number of Hedge Fund Holders as of Q1 2025: 34
Nuvation Bio Inc. (NYSE:NUVB) is one of the 10 best healthcare penny stocks to buy according to analysts. JMP Securities analyst Silvan Tuerkcan maintained a “Market Outperform” rating on Nuvation’s stock on June 25. The analyst also kept the price target at $6.00 per share.
Tuerkcan’s decision follows Nuvation’s detailed presentation of launch plans for its cancer treatment, IBTROZI (taletrectinib). The drug has received FDA approval for adults with locally advanced or metastatic ROS1-positive Non-Small Cell Lung Cancer (NSCLC). China’s National Medical Products Administration (NMPA) also approved it earlier in January 2025 for the same indication. Nuvation plans to price the treatment at $29,844 per month.
Tuerkcan’s research note pointed out that IBTROZI maintains an approximately two-year lead over Nuvalent’s (NASDAQ:NUVL) zidesamtinib in front-line treatment for ROS1-positive NSCLC. She also noted that the potent efficacy of both IBTROZI and zidesamtinib is expected to drive physician interest in new ROS1 TKI treatments and expand the ROS1 class of therapies.
Nuvation Bio Inc. (NYSE:NUVB) is a clinical-stage biopharmaceutical company. It develops targeted cancer therapies for patients with tumors that are difficult to treat. Its lead product is IBTROZI. Other pipeline candidates include safusidenib (for brain tumors with IDH1 mutations), NUV-1511 (a drug-drug conjugate for solid tumors), and NUV-868 (a BET inhibitor targeting BRD4).
2. Autolus Therapeutics plc (NASDAQ:AUTL)
Stock Price as of June 27: $2.31
Analyst Upside Potential as of June 27: 332.90%
Number of Hedge Fund Holders as of Q1 2025: 17
Autolus Therapeutics plc (NASDAQ:AUTL) is one of the 10 best healthcare penny stocks to buy according to analysts. On June 12, the company presented long-term follow-up data from its FELIX study at the 2025 European Hematology Association (EHA) Congress. The presentation highlighted the potential of obecabtagene autoleucel (obe-cel; brand name Aucatzyl) for long-term remission in adult patients with relapsed or refractory B-cell Acute Lymphoblastic Leukemia (r/r B-ALL).
FELIX is a phase 1b/2, open-label, multicenter, single-arm study evaluating obe-cel in adults with r/r CD19-positive B-ALL. The study investigated obe-cel (formerly AUTO1), an autologous CD19 CAR T-cell therapy designed for rapid CAR T cell expansion and a favorable safety profile. According to the presented data, the estimated 3-year overall survival rate was 55.4%. The data also demonstrated sustained remission rates, with 40% of patients remaining in molecular remission at 36 months.
Commenting on the development, Dr. Christian Itin, Autolus CEO, said: “Obe-cel’s durability of response without any subsequent therapy in two out of every five responders is a key factor leading the transformation of therapy for adult r/r B-ALL patients. At a median follow-up of 33 months, we are encouraged to see a continuation of the long-term plateau we observed at the last data cut.”
Autolus Therapeutics plc (NASDAQ:AUTL) is a clinical-stage biopharmaceutical company. It develops programmed T cell therapies to treat cancer and autoimmune diseases. Its lead candidate is obe-cel, a CD19-targeting treatment for adult acute lymphoblastic leukemia (ALL). Other pipeline programs include AUTO1/22 (pediatric ALL), AUTO4 (T-cell lymphoma), AUTO6NG (neuroblastoma), and AUTO8 (multiple myeloma).
1. Iovance Biotherapeutics, Inc. (NASDAQ:IOVA)
Stock Price as of June 27: $1.74
Analyst Upside Potential as of June 27: 474.71%
Number of Hedge Fund Holders as of Q1 2025: 37
Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is one of the 10 best healthcare penny stocks to buy according to analysts. Goldman Sachs reiterated its “Buy” rating on Iovance’s stock on June 3. The firm also maintained its $34.00 price target for Iovance shares.
Goldman Sachs based its reaffirmation on new data that Iovance presented at the 2025 American Society of Clinical Oncology (ASCO) Annual Meeting. The ASCO data focused on Amtagvi, a tumor-infiltrating lymphocyte (TIL) therapy. The FDA approved the treatment in February 2024 for adult patients with unresectable or metastatic melanoma. The data supported the therapy’s safety profile, which, according to Goldman Sachs, reinforces Amtagvi’s potential as a significant treatment option.
Goldman Sachs’s analysts noted that the five-year follow-up data are unprecedented for any therapy in this heavily pretreated advanced melanoma population. To them, the data highlights the durability of Amtagvi’s responses. The firm emphasized Amtagvi’s successful US launch, with consistent patient demand, enhanced operations at Authorized Treatment Centers (ATCs), and improved out-of-spec rates (manufacturing quality metrics). It also highlighted the drug’s first full calendar year of sales in 2025 as a key driver.
Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is a commercial-stage biopharmaceutical company. It develops and markets cell therapies that harness a patient’s own immune cells to treat solid tumors. Its lead product is Amtagvi, approved for advanced melanoma, and it also markets Proleukin. Iovance’s pipeline includes candidates for cervical cancer, non-small cell lung cancer, and hematologic malignancies.
While we acknowledge the potential of Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than IOVA and that has 100x upside potential, check out our report about the cheapest AI stock.
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