In this article, we discuss the 10 best healthcare stocks under $20 according to Michael Castor’s Sio Capital. If you want to skip our detailed analysis of Castor’s history, investment philosophy, and hedge fund performance, go directly to 5 Best Healthcare Stocks Under $20 According to Michael Castor’s Sio Capital.
Michael Castor serves as the portfolio manager at Sio Capital Management, an investment management firm based in New York City, New York. Prior to founding Sio Capital Management in 2006, Michael Castor served as a healthcare analyst at Bernstein Investment Research and Management. Castor also served in the investment banking markets division at JP Morgan. He holds a B.S.E in Biomedical Engineering from Tulane University and an M.D from The Ohio State University College of Medicine. Before delving into the world of finance, Michael Castor had a three-year tenure practicing clinical medicine, specializing in otolaryngology.
According to the most recent 13F Filings, Sio Capital Management manages more than $402 million in under Michael Castor’s management. The fund invests heavily in the healthcare sector, which makes up over 81.1% of the investment fund’s portfolio. A majority of the companies present in the fund’s portfolio are large-cap stocks. Stocks with a size of more than $10 billion in market capitalization make up 13% of the fund’s total portfolio value, while small-cap stocks make up only 4.4% of the portfolio.
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Some of the top stocks present in the investment portfolio of Sio Capital Management at the end of the second quarter of 2021 include Cigna Corporation (NYSE:CI), Amgen Inc. (NASDAQ:AMGN), McKesson Corporation (NYSE:MCK), Herbalife Nutrition Ltd. (NYSE:HLF) and Centene Corporation (NYSE:CNC), among others.
Michael Castor of Sio Capital
Our Methodology
With this background in mind, let us now look towards the 10 best healthcare stocks under $20 according to Michael Castor’s Sio Capital. We made use of Sio Capital Management’s 13F portfolio for the second quarter for this analysis.
Why should we pay attention to Michael Castor’s stocks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
10 Best Healthcare Stocks Under $20 According to Michael Castor’s Sio Capital.
10. Radius Health, Inc. (NASDAQ:RDUS)
Castor’s Stake Value: $4.39 million
Percentage of Michael Castor’s 13F Portfolio: 1.09%
Number of Hedge Fund Holders: 19
Stock Price as of September 23: $12.62
Radius Health, Inc. (NASDAQ:RDUS) is a leading biopharmaceutical company that provides endocrinology services, in addition to a focus on development of drug therapies for osteoporosis in patients. Ranked tenth on the list of the 10 best stocks under $20 according to Michael Castor’s Sio Capital, Radius Health, Inc. (NASDAQ:RDUS) has a market capitalization of $596.5 million.
Michael Castor’s Sio Capital Management currently holds 240,957 shares of Radius Health, Inc. (NASDAQ:RDUS), amounting to $4.39 million in worth and representing 1.09% of the fund’s total portfolio value. By the end of the second quarter of 2021, 19 hedge funds out of the 873 tracked by Insider Monkey held stakes in Radius Health, Inc. (NASDAQ:RDUS) worth roughly $191.2 million. This is compared to 21 hedge funds in the previous quarter with a total stake value of approximately $142 million.
As of the fiscal second quarter of 2021, Radius Health, Inc. (NASDAQ:RDUS) reported an earnings per share of -$0.22, missing estimates by $0.03. The company also generated revenues of $51.80 million, falling short of estimates by $7.93 million.
On August 6, H.C. Wainwright analyst Douglas Tsao lowered the firm’s price target on Radius Health, Inc. (NASDAQ:RDUS) to $19 from $25 and kept a Neutral rating on the shares.
Just like Cigna Corporation (NYSE:CI), Amgen Inc. (NASDAQ:AMGN), McKesson Corporation (NYSE:MCK), Herbalife Nutrition Ltd. (NYSE:HLF) and Centene Corporation (NYSE:CNC), Radius Health Inc. (NASDAQ:RDUS) is a top stock in Michael Castor’s portfolio.
9. ASLAN Pharmaceuticals Limited (NASDAQ:ASLN)
Caster’s Stake Value: $4.9 million
Percentage of Michael Castor’s 13F Portfolio: 1.22%
Number of Hedge Fund Holders: 16
Stock Price as of September 23: $3.25
ASLAN Pharmaceuticals Limited (NASDAQ:ASLN) is a clinical-stage biopharmaceutical company that focuses on immunology treatments for patients. Ranked ninth on the list of the 10 best healthcare stocks under $20 according to Michael Castor’s Sio Capital, ASLAN Pharmaceuticals Limited (NASDAQ:ASLN) has a market capitalization of $225.94 million.
Michael Castor’s Sio Capital Management presently holds 1.48 million shares of ASLAN Pharmaceuticals Limited (NASDAQ:ASLN), amounting to $4.9 million and accounting for 1.22% of the fund’s portfolio. By the end of the second quarter of 2021, 16 hedge funds out of the 873 tracked by Insider Monkey held stakes in ASLAN Pharmaceuticals Limited (NASDAQ:ASLN) worth roughly $63.2 million. This is compared to 18 hedge funds in the previous quarter with a total stake value of approximately $61 million.
ASLAN Pharmaceuticals Limited (NASDAQ:ASLN) released its quarterly earnings report for the second quarter of 2021 on August 6, with reported earnings per share at -$0.11, missing estimates by $0.03.
Out of the hedge funds being tracked by Insider Monkey’s database, Illinois-based investment firm Citadel Investment Group is a leading shareholder in ASLAN Pharmaceuticals Limited (NASDAQ:ASLN) with 2.89 million shares worth more than $9.5 million.
8. X4 Pharmaceuticals, Inc. (NASDAQ:XFOR)
Castor’s Stake Value: $5.23 million
Percentage of Michael Castor’s 13F Portfolio: 1.3%
Number of Hedge Fund Holders: 17
Stock Price as of September 23: $5.54
X4 Pharmaceuticals, Inc. (NASDAQ:XFOR) is a biopharmaceutical company that develops and commercializes oral medicines and therapeutics for the treatment of rare diseases, including primary immunodeficiencies and rare types of cancer. Ranked eighth on our list of the 10 best healthcare stocks under $20 according to Michael Castor’s Sio Capital, X4 Pharmaceuticals, Inc. (NASDAQ:XFOR) has a market capitalization of $137.68 million.
At present, Michael Castor’s Sio Capital Management holds 804,597 shares of X4 Pharmaceuticals, Inc. (NASDAQ:XFOR), worth over $5.23 million and representing 1.3% of the fund’s portfolio. By the end of the second quarter of 2021, 17 hedge funds out of the 873 tracked by Insider Monkey held stakes in X4 Pharmaceuticals, Inc. (NASDAQ:XFOR) worth roughly $50 million. This is compared to 11 hedge funds in the previous quarter with a total stake value of approximately $55.7 million.
X4 Pharmaceuticals, Inc. (NASDAQ:XFOR) released its quarterly earnings report for the second quarter of 2021 on August 3, with reported earnings per share at -$0.74, in-line with the estimates for that quarter.
On June 11, Roth Capital analyst Zegbeh Jallah raised the firm’s price target on X4 Pharmaceuticals, Inc. (NASDAQ:XFOR) to $27 from $23 and kept a Buy rating on the shares.
Just like Cigna Corporation (NYSE:CI), Amgen Inc. (NASDAQ:AMGN), McKesson Corporation (NYSE:MCK), Herbalife Nutrition Ltd. (NYSE:HLF) and Centene Corporation (NYSE:CNC), X4 Pharmaceuticals, Inc. (NASDAQ:XFOR) is a top stock in Michael Castor’s portfolio.
7. Ayala Pharmaceuticals, Inc. (NASDAQ:AYLA)
Castor’s Stake Value: $5.53 million
Percentage of Michael Castor’s 13F Portfolio: 1.37%
Number of Hedge Fund Holders: 4
Stock Price as of September 3: $11.21
Ayala Pharmaceuticals, Inc. (NASDAQ:AYLA) is a clinical-stage oncology company that develops cancer therapies for patients with aggressive and rare genetically defined cancers. Ranked seventh on the list of the 10 best healthcare stocks under $20 according to Michael Castor’s Sio Capital, Ayala Pharmaceuticals, Inc. (NASDAQ:AYLA) has a market capitalization of $148.45 million.
Michael Castor’s Sio Capital Management currently holds 542,977 shares of Ayala Pharmaceuticals, Inc. (NASDAQ:AYLA), amounting to $5.53 million in worth and representing 1.37% of the fund’s total portfolio value. By the end of the second quarter of 2021, 4 hedge funds out of the 873 tracked by Insider Monkey held stakes in Ayala Pharmaceuticals, Inc. (NASDAQ:AYLA) worth roughly $12.68 million. The number of hedge funds remained unchanged in both quarters. Hedge fund stakes in the previous quarter, however, amounted to approximately $13.95 million.
Ayala Pharmaceuticals, Inc. (NASDAQ:AYLA) released its quarterly earnings report for the second quarter of 2021 on August 12, with reported earnings per share at -$0.75, missing estimates by $0.13. The company also reported revenues at $761,000, falling short of estimates by $6,500.
On July 13, Ladenburg analyst Ahu Demir initiated coverage of Ayala Pharmaceuticals, Inc. (NASDAQ:AYLA) with a Buy rating and $29 price target on its shares.
6. Coherus BioSciences, Inc. (NASDAQ:CHRS)
Castor’s Stake Value: $5.72 million
Percentage of Michael Castor’s 13F Portfolio: 1.42%
Number of Hedge Fund Holders: 17
Stock Price as of September 23: $17.73
Coherus BioSciences, Inc. (NASDAQ:CHRS) is a biopharmaceutical company that is involved in the development, manufacturing and commercialization medicines for the treatment of oncology and inflammatory diseases. Ranked sixth on the list of the 10 best healthcare stocks under $20 according to Michael Castor’s Sio Capital, Coherus BioSciences, Inc. (NASDAQ:CHRS) has a market capitalization of $1.36 billion.
Michael Castor’s Sio Capital Management presently holds 413,733 shares of Coherus BioSciences, Inc. (NASDAQ:CHRS), amounting to over $5.72 million and accounting for 1.42% of the fund’s total investment portfolio. By the end of the second quarter of 2021, 17 hedge funds out of the 873 tracked by Insider Monkey held stakes in Coherus BioSciences, Inc. (NASDAQ:CHRS) worth roughly $102.3 million. This is compared to 23 hedge funds in the preceding quarter with stakes worth approximately $144.3 million.
On August 5, Coherus BioSciences, Inc. (NASDAQ:CHRS) issued its quarterly earnings report for the second quarter of 2021, with reported earnings per share at -$0.40, falling short of the estimates by $0.25. The company also reported revenues of $87.64 million, surpassing forecast estimates by $0.60 million.
Out of the hedge funds being tracked by Insider Monkey’s database, New York-based investment firm Perceptive Advisors is a leading shareholder in Coherus BioSciences, Inc. (NASDAQ:CHRS) with 4.67 million shares worth more than $64.9 million.
Just like Cigna Corporation (NYSE:CI), Amgen Inc. (NASDAQ:AMGN), McKesson Corporation (NYSE:MCK), Herbalife Nutrition Ltd. (NYSE:HLF) and Centene Corporation (NYSE:CNC), Coherus BioSciences, Inc. (NASDAQ:CHRS) is a top stock in Michael Castor’s portfolio.
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Disclosure: None. 10 Best Healthcare Stocks Under $20 According to Michael Castor’s Sio Capital is originally published on Insider Monkey.
