In this article, we will look at the 10 Most Undervalued Biotech Stocks to Buy Now.
On July 25, Salveen Richter, Goldman Sachs’ lead biotech analyst, appeared on CNBC’s ‘Squawk Box’ to talk about the state of the biotech sector and what to expect from the earnings season, among other things.
She stated that there have been quite a few years of negative earnings revision cycles for biotech and healthcare, and what she wants to see now is these companies achieving the numbers.
Richter added that they have started to have some stability, and Q2 historically tends to be a stronger quarter. Some biotech companies in the industry thus have the potential to deliver strong financial results.
READ ALSO: 10 Most Profitable NYSE Stocks to Buy Now and 10 Oversold NYSE Stocks to Buy Now.
Two other factors to consider in the industry are launches and pipelines beyond numbers, according to the analyst.
There have been quite a few drug launches that have played out this year that she will continue to watch. Talking about pipelines beyond numbers, she stated that Alzheimer’s disease has started to be a focus for the season, as has pain.
With these trends in view, let’s look at the most undervalued biotech stocks to buy now.
A biotechnologist in a lab wearing an apron and safety glasses, working on a biopharmaceutical process.
Our Methodology
We reviewed financial media reports and ETFs to compile an initial list of biotech stocks with a forward P/E below 15 and selected the top 10 stocks with the highest number of hedge fund holders as of Q1 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of the number of hedge fund holders.
Note: All data was recorded on August 9.
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).
10 Most Undervalued Biotech Stocks to Buy Now
10. Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL)
Forward P/E: 6.45
Number of Hedge Fund Holders: 10
Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) is one of the top most undervalued biotech stocks to buy now. On August 6, analyst Joseph Pantginis from H.C. Wainwright reiterated a Buy rating on Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) with a $57.00 price target.
The analyst based the positive rating on the company’s promising growth outlook and solid financial performance, stating that Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) reported an EPS of $3.28 in fiscal Q2 2025, exceeding both the firm’s estimate of $2.52 and the consensus of $1.40.
The company also surpassed expectations by reporting $101.7 million in total revenue in the quarter, attributed primarily to higher-than-expected revenue from Tavalisse. The analyst reasoned that Tavalisse benefited from enhanced access and higher patient starts after changes in Medicare Part D coverage.
Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) is a clinical-stage biotechnology company that discovers and develops targeted, novel drugs in oncology, immunology, and immune oncology. Its product portfolio includes Tavalisse, Fostamatinib, and R835.
9. CorMedix Inc. (NASDAQ:CRMD)
Forward P/E: 9.67
Number of Hedge Fund Holders: 12
CorMedix Inc. (NASDAQ:CRMD) is one of the top most undervalued biotech stocks to buy now. On August 7, Needham analyst Serge Belanger maintained a Buy rating on CorMedix Inc. (NASDAQ:CRMD) and set a price target of $20.00.
The analyst based the rating on the company’s strategic growth potential, stating that its acquisition of Melinta Therapeutics includes a portfolio of hospital-based antifungals and antibiotics that is anticipated to considerably increase sales, offering a solid opportunity for label expansion.
According to the analyst, this initiative positions CorMedix Inc. (NASDAQ:CRMD) to diversify its portfolio in the hospital sector beyond its present offerings by engaging in further product acquisitions and business development.
CorMedix Inc. (NASDAQ:CRMD) is a medical device and biopharmaceutical company that develops and commercializes therapeutics to treat and prevent diseases and medical conditions.