In this article, we will be taking a look at the 10 most undervalued healthcare stocks to buy according to analysts. 

The CEO of Pivotal Advisors, Tiffany McGhee, spoke on CNBC on June 27 on what investors should do in light of the current state of the market. In order to stay in line with long-term objectives, she added that investors should reassess allocations, reduce hot spots, and strengthen underweight areas as the market moves into the second half of 2025. She went on to say that diversification is still the greatest way to guard against uncertainty and prepare for future market trends.

In the same interview, Meghan Shue, Head of Investment Strategy at Wilmington Trust, also expressed her opinion, saying that even though the market might experience some volatility into the summer, investors should remain invested because there is a lot of potential in the tech sector as well as some of the other, more established industries, like the healthcare sector, which has historically been a segment of the market that no one has wanted to enter.

McGhee supported this claim by stating that she anticipates possibilities for catch-up in the healthcare industry. Keeping these trends in mind, let’s look at the 10 most undervalued healthcare stocks to buy according to analysts.

Our Methodology  

For our methodology, we used a stock screener to filter companies with a P/E ratio under 15 and high analyst upside. The final list was ranked by highest analyst upside to identify undervalued stocks with strong growth potential.

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).

Here is our list of the 10 most undervalued healthcare stocks to buy according to analysts.

10. Bio-Rad Laboratories, Inc. (NYSE:BIO)

Analyst Upside: 324.25%

Bio-Rad Laboratories, Inc. (NYSE:BIO) is one of the most undervalued healthcare stocks. It is a global leader in life science research and clinical diagnostics and advanced its digital PCR capabilities in 2025 with the launch of four new Droplet Digital PCR (ddPCR) instruments, including the QX Continuum and QX700 series, acquired through its purchase of Stilla Technologies. These systems significantly expand the company’s ddPCR portfolio, now offering over 400,000 assays, and enhance applications in oncology, infectious disease, and genetic analysis through improved multiplexing, throughput, and workflow integration.

Supporting the growing field of gene therapy, Bio-Rad Laboratories, Inc. (NYSE:BIO) released ddPCR kits for accurate measurement of adeno-associated virus (AAV) vectors, enabling efficient viral titer and capsid integrity assessment. The company also extended its Vericheck kits to support additional viral serotypes for broader biotherapeutic research.

The corporation’s other key product launches include the TrailBlazer Tag and StarBright Dye Label kits for antibody conjugation in flow cytometry and Western blotting, and new purification tools—Nuvia wPrime 2A resin and Foresight Pro columns, designed for scalable biopharma manufacturing.

Throughout 2025, Bio-Rad Laboratories, Inc. (NYSE:BIO) has remained actively engaged in global industry events, offering workshops on diagnostic innovation and showcasing its expanding technology portfolio for both clinical and research applications.

9. BeOne Medicines Ltd. (NASDAQ:ONC)

Analyst Upside: 332.44%

BeOne Medicines Ltd. (NASDAQ:ONC), formerly BeiGene, is a global oncology company now headquartered in Switzerland following its May 2025 redomiciliation. The strategic move enhances the company’s access to European biotech networks and regulatory alignment, supporting its mission to lead in cancer innovation. With operations in over 45 countries and a pipeline of 50+ investigational assets, the business is rapidly expanding its R&D and clinical presence.

A major milestone for BeOne Medicines Ltd. (NASDAQ:ONC) this year was the European Commission’s approval of Tevimbra (tislelizumab) for multiple indications, including extensive-stage small cell lung cancer and nasopharyngeal carcinoma, further cementing its role in immuno-oncology. Tevimbra is already FDA-approved for esophageal cancer, and continued regulatory momentum is expected.

In hematology, the corporation showcased significant advances at the 2025 EHA Congress. Sonrotoclax (a BCL2 inhibitor) and BGB-16673 (a first-in-class BTK degrader) delivered promising results in treating resistant forms of chronic lymphocytic leukemia (CLL) and mantle cell lymphoma (MCL), advancing toward Phase 3 trials. Meanwhile, BRUKINSA (zanubrutinib) remains a core therapy, demonstrating superior outcomes compared to ibrutinib.

BeOne Medicines Ltd. (NASDAQ:ONC) also made strides in pipeline growth, advancing 13 new molecules into clinical trials in 2024 alone. With 170+ global trials and over 25,000 patients enrolled, its “Fast to Proof-of-Concept” strategy accelerates timelines and patient access. In June 2025, a licensing deal with Neowise Biotechnology expanded the business’s efforts in next-gen cell therapies, particularly TCR-based platforms.

8. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)

Analyst Upside: 346.13%

Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is a leading biopharmaceutical company specializing in RNA interference (RNAi) therapeutics, with four FDA-approved drugs for rare genetic diseases. Recently, the company has made significant strides in treating transthyretin amyloidosis (ATTR), a progressive disease affecting the heart and nerves.

In March 2025, the FDA approved AMVUTTRA (vutrisiran) to reduce cardiovascular death and hospitalizations in ATTR-CM patients, based on strong results from the HELIOS-B Phase 3 trial. The drug also received approval from the European Commission in June 2025. Long-term data (up to 42 months) continues to support its effectiveness in improving heart function and quality of life.

Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), considered one of the most undervalued stocks in the biotech sector, is advancing nucresiran (ALN-TTRsc04), a next-gen RNAi treatment for ATTR. Interim Phase 1 results show sustained TTR protein reduction (over 90% within 15 days), with potential for once- or twice-yearly dosing. The drug enters Phase 3 trials in 2025 through the TRITON-CM program, aiming for longer-lasting, more convenient treatment options.

Beyond ATTR, the business is expanding its pipeline with nine new investigational therapies by the end of 2025, including treatments for Huntington’s disease, bleeding disorders, and type 2 diabetes. The company also initiated a landmark Phase 1 trial for ALN-HTT02 in Huntington’s, marking its entry into neurotherapeutics. Platform upgrades are targeting improved delivery to organs like the brain, heart, and kidneys, enhancing Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)’s ability to address both rare and common diseases.

7. Molina Healthcare, Inc. (NYSE:MOH)

Analyst Upside: 346.20% 

Molina Healthcare, Inc. (NYSE:MOH) is a leading managed care provider offering government-sponsored healthcare programs like Medicaid and Medicare to low-income individuals and families across the U.S. Headquartered in Long Beach, California, Molina operates health plans in multiple states and serves millions through Medicaid, Medicare, and dual-eligible Special Needs Plans (D-SNPs).

The company recently secured major Medicaid contract wins and renewals in states like Georgia, Idaho, Massachusetts, and Ohio, which will contribute to revenue growth and expand access to care. Molina Healthcare, Inc. (NYSE:MOH) also acquired ConnectiCare Holding Co., adding 140,000 members, and previously took over Bright Health’s assets in California.

A key strategic focus is the dual-eligible population, those covered by both Medicaid and Medicare, due to their complex needs and potential for integrated, high-quality care. Molina is developing blended service models and adjusting policy and reimbursement structures to address this growing segment.

Molina Healthcare, Inc. (NYSE:MOH) remains active in community engagement, such as maternal health initiatives in Texas. It’s also prioritizing behavioral health and chronic condition management through updated protocols and external partnerships.

6. United Therapeutics Corporation (NASDAQ:UTHR)

Analyst Upside: 383.08 

United Therapeutics Corporation (NASDAQ:UTHR) is a biotechnology company focused on treating rare, life-threatening diseases such as pulmonary arterial hypertension (PAH) and advancing technologies to address the shortage of transplantable organs. As the first major biotech to become a Public Benefit Corporation, it combines innovation with social impact, especially in organ transplantation.

In 2025, the company launched the first human clinical trial of UKidney, a gene-edited pig kidney, in patients with end-stage renal disease (ESRD). The FDA cleared the IND in February, and the first transplant is expected by mid-year. The UKidney features ten genetic modifications to improve human compatibility. The initial trial includes six patients, with plans to expand to 50.

United Therapeutics Corporation (NASDAQ:UTHR), often cited among the most undervalued stocks in the biotech industry, is investing $100 million in expanding its Silver Spring, Maryland, organ production campus. This facility will drive large-scale manufacturing of bioengineered organs, leveraging work by its subsidiary, Revivicor, which has already achieved successful pig-to-human organ transplants.

In parallel, the business continues advancing therapies for PAH and pulmonary hypertension. It completed enrollment in its TETON-2 trial (inhaled treprostinil for idiopathic pulmonary fibrosis) with results expected later in 2025, and is progressing with other investigational drugs like rilaprag.

By pioneering xenotransplantation and expanding infrastructure, United Therapeutics Corporation (NASDAQ:UTHR) aims to revolutionize organ transplantation and significantly reduce the gap between organ supply and demand.

5. Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL)

Analyst Upside: 420.63 

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) is leading innovation in treating metabolic dysfunction-associated steatohepatitis (MASH), previously known as NASH. It’s FDA-approved drug, Rezdiffra (resmetirom), is the first oral, liver-targeted thyroid hormone receptor-β agonist for MASH with moderate to advanced fibrosis (F2–F3). It is also being tested in compensated MASH cirrhosis patients.

At the 2025 EASL Congress, Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) presented promising two-year data from its Phase 3 MAESTRO-NAFLD-1 trial, showing Rezdiffra significantly reduced liver stiffness and lowered the risk of liver decompensation in F4c patients. Notably, 51% of participants had a ≥25% reduction in liver stiffness, and 65% of those with baseline portal hypertension moved to lower-risk categories. Safety remained consistent with prior results.

Looking ahead, the MAESTRO-NASH OUTCOMES trial, expected to read out in 2027, will evaluate Rezdiffra’s ability to reduce liver-related events in compensated cirrhosis patients. Meanwhile, regulatory momentum continues: the EMA’s CHMP issued a positive opinion in June 2025, with potential EU approval expected by August. Rezdiffra would then be the first MASH treatment approved in both the U.S. and Europe.

Further solidifying its position, Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) secured a new U.S. patent for Rezdiffra’s dosing rights in July 2025, enhancing its intellectual property and global commercialization strategy.

4. UnitedHealth Group Incorporated (NYSE:UNH)

Analyst Upside: 426.48 

UnitedHealth Group Incorporated (NYSE:UNH) is among the most undervalued stocks. It is the largest U.S. health insurer, operating through its insurance arm (UnitedHealthcare) and health services division (Optum). It serves over 50 million people and continues to focus on transforming care delivery through value-based care, integrated services, and investments in social determinants of health.

In May 2025, Stephen J. Hemsley returned as CEO, replacing Andrew Witty. The leadership shift comes amid uncertainty, with the company withdrawing its 2025 financial outlook but reaffirming its long-term goals of improving healthcare access, quality, and affordability.

UNH is expanding care access, particularly for underserved and rural populations. Through the UnitedHealth Foundation, the company partnered with Cherokee Health Systems to improve rural prescription delivery. It also committed $7 million in grants to maternal and infant health, and its affordable housing-linked health investments reached $1.2 billion. A major project in Minneapolis will include 83 housing units and a new health center expected to serve 3,000 additional patients annually.

For 2025, UnitedHealth Group Incorporated (NYSE:UNH) introduced 140 new Medicare Advantage plans, expanding support for chronically ill and dual-eligible populations. The Chronic Special Needs Plans (C-SNPs) will significantly increase coverage. Optum plans to serve 650,000 more patients under value-based care, leveraging AI tools to enhance coordination and preventive care.

Optum is deepening its home-care services following its 2023 acquisition of LHC Group and now aims to acquire Amedisys. If approved, the deal would give Optum major market share in several states. However, the Department of Justice is reviewing the merger for potential antitrust violations.

3. Elevance Health, Inc. (NYSE:ELV)

Analyst Upside: 441.43 

Elevance Health, Inc. (NYSE:ELV) is a major U.S. healthcare company, known for its insurance brands Anthem and WellPoint, and its growing Carelon health services arm. It serves around 45.6 million medical plan members and is recognized for integrating technology and value-based care to improve healthcare delivery.

The company is facing increased healthcare utilization and rising medical costs, especially in the ACA and Medicaid segments. This has led to a downgrade in full-year 2025 earnings. A “market-wide morbidity shift” is evident, with new ACA enrollees using emergency services at nearly double the rate of commercial members, and Medicaid patients showing higher acuity due to redeterminations.

Amid these challenges, some investors see Elevance Health, Inc. (NYSE:ELV) as one of the most undervalued stocks in the healthcare sector, given its long-term positioning and strategic adjustments. The company expects a surge in elective procedures by Q4 2025 as members act ahead of expiring tax credits in 2026 that could raise their out-of-pocket costs.

To address these pressures, the business is ramping up AI-driven tools for risk detection, care coordination, and operational efficiency. It’s also expanding value-based care contracts, particularly in behavioral health and oncology, with over one-third of benefit expenses tied to risk-sharing models. The company is adjusting pricing strategies for ACA plans and advocating for Medicaid access amid potential regulatory changes.

Though total membership fell by 212,000 in Q2 due to Medicaid attrition, the Medicare Advantage segment continues to grow. Elevance Health, Inc. (NYSE:ELV) is prioritizing long-term financial stability over aggressive member growth as it navigates rising costs, shifting regulations, and post-pandemic care patterns.

2. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)

Analyst Upside: 509.00 

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), a global biotech firm based in Boston, is known for developing innovative treatments for serious diseases like cystic fibrosis, sickle cell disease, and beta thalassemia. The company is recognized for its strong pipeline targeting unmet medical needs.

In July 2025, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) launched JOURNAVX (suzetrigine), a first-in-class, non-opioid treatment for moderate-to-severe acute pain. JOURNAVX, an oral NaV1.8 pain signal inhibitor, was named a 2025 Breakthroughs Innovation Celebration winner by Premier, Inc. It represents the first new class of pain medicine in decades and offers a safer alternative to opioids by directly targeting pain pathways without addiction risks.

This launch marks a major advancement in pain management, aligning with public health efforts to reduce opioid use. JOURNAVX is especially relevant for acute pain scenarios such as post-surgical recovery and injury care.

Beyond acute pain, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) continues to expand its reach. Its next-gen cystic fibrosis therapy, ALYFTREK, received approval from the European Commission in July 2025, strengthening its global leadership in this area. The company is also advancing gene-editing therapies like CASGEVY for sickle cell and beta thalassemia, and is developing treatments for kidney disease, type 1 diabetes, and rare genetic disorders.

1. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)

Analyst Upside: 840.95%

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is among the most undervalued stocks. It is a leading American biotech company specializing in treatments for serious diseases across ophthalmology, immunology, oncology, and rare conditions. The company is known for integrating genetics and technology into its drug discovery efforts and continues to grow through internal innovation and strategic acquisitions.

In a major move, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is acquiring most of 23andMe’s assets for $256 million, including its personal genome service, research services, biobank, and associated data. This will expand the business’s access to genetic information from 15 million individuals (with 80% consenting to research use), enhancing its existing warehouse of 3 million anonymized samples.

The acquisition significantly boosts Regeneron’s capabilities in genetics-guided drug development and precision medicine. The vast dataset will help identify new drug targets, refine clinical trial designs, and improve patient stratification. This positions the corporation to lead the integration of real-world genomic data into personalized healthcare.

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) continues to advance its pipeline with FDA priority reviews for Dupixent (bullous pemphigoid) and Linvoseltamab (multiple myeloma), as well as promising late-stage results for EYLEA HD in eye disorders. The firm’s focus remains on leveraging data and science to drive innovative, effective therapies.

While we acknowledge the potential of REGN to grow, 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 REGN and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.