In this article, we will be taking a look at the 10 Overlooked Healthcare Stocks to Invest in.
The CEO and co-founder of Claimable, Dr. Warris Bokhari, spoke on CNBC’s “Squawk Box” on July 21 about using AI to challenge health insurance denials and other topics.
Most Americans have endured the frustration of having their health insurance denied, often with no resolution even after contacting carriers by phone and email. This can be changed by Dr. Bokhari’s platform, which employs artificial intelligence (AI) to appeal care denials for about 70 autoimmune illnesses, including Crohn’s disease.
Following patient completion of a form, AI manages the following steps, looking up pertinent state and federal regulations as well as healthcare plans.
According to Dr. Bokhari, the platform was created after ten years of observing one of America’s particular issues: 850 million denials occur annually, and only around 1% of them are ever appealed. According to these figures, between 70 and 90 million Americans face insurance-related problems each year, including denials.
Using AI to create appeal letters based on healthcare plans, the program, which was initially launched in the US on October 2, 2024, assists individuals in appealing care denials for 70 autoimmune disorders.
With these trends in mind, let’s look at the 10 overlooked healthcare stocks to invest in.
Our Methodology
For our methodology, we first screened for stocks with a forward price-to-earnings (P/E) ratio below 15 and a market capitalization above $2 billion using a stock screener. From this filtered list, we selected the top 10 companies. These were then ranked according to the total number of hedge fund holders in Q2 2025, as reported by the Insider Monkey database.
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 overlooked healthcare stocks to invest in.
10. Ardent Health, Inc. (NYSE:ARDT)
Number of Hedge Fund Holders: 16
Ardent Health, Inc. (NYSE:ARDT), one of the most overlooked stocks, is rapidly expanding its presence in the U.S. healthcare market, focusing on outpatient and ambulatory care through urgent care centers and digital innovations. Operating 30 hospitals and over 280 sites of care across eight states, the company targets mid-sized urban markets with a consumer-focused model that integrates physical and virtual care.
In 2025, Ardent Health, Inc. (NYSE:ARDT) significantly increased its reach by acquiring 18 urgent care clinics in New Mexico and Oklahoma, with plans to add five more urgent care centers and two imaging centers by year-end. The rollout of digital tools, including virtual nursing, AI-enabled scribe technology, and medical wearables, has improved patient outcomes while reducing costs and nurse turnover. The corporation is also developing new ambulatory surgery centers (ASCs) to meet growing demand, emphasizing de novo facility construction alongside acquisitions.
Ardent Health, Inc. (NYSE:ARDT) is expanding cancer care services within its network, exemplified by integrating the Hillcrest Medical Center oncology and infusion clinic into the OU Health Stephenson Cancer Center at Hillcrest. This initiative enhances access to comprehensive oncology services, supports academic-clinical collaboration, and strengthens the continuum of care for cancer patients.
9. Collegium Pharmaceutical, Inc. (NASDAQ:COLL)
Number of Hedge Fund Holders: 20
Collegium Pharmaceutical, Inc. (NASDAQ:COLL) is a U.S.-based biopharmaceutical company specializing in innovative pain management solutions, with a focus on abuse-deterrent therapies such as BELBUCA and XTAMPZA ER. Headquartered in Stoughton, Massachusetts, the company emphasizes responsible opioid use, patient safety, and data-driven guidance for healthcare providers.
In 2025, Collegium Pharmaceutical, Inc. (NASDAQ:COLL) is showcasing its leadership in real-world evidence at PAINWeek 2025, presenting nine clinical research posters highlighting the effectiveness, safety, and clinical outcomes of its flagship products in chronic pain management. The studies provide insights into treatment patterns, safety profiles, economic impact, and opioid-use disorder outcomes, particularly in chronic low back pain patients.
By leveraging real-world data, Collegium Pharmaceutical, Inc. (NASDAQ:COLL) aims to support clinical decision-making, reduce unnecessary exposure to high-risk opioids, and promote safer, abuse-deterrent alternatives. The business’s commitment to transparency and evidence-based guidance positions it as a leader in responsibly navigating pain management challenges and shaping clinical and policy discussions around opioid prescribing.
8. Integra LifeSciences Holdings Corporation (NASDAQ:IART)
Number of Hedge Fund Holders: 23
Integra LifeSciences Holdings Corporation (NASDAQ:IART), based in Princeton, New Jersey, is a medical device company specializing in neurosurgery, wound care, otolaryngology, and tissue technologies. Its two main segments, Codman Specialty Surgical and Tissue Technologies, provide neurosurgical instruments and advanced wound care solutions to hospitals and specialty clinics globally.
In Q2 2025, Integra LifeSciences Holdings Corporation (NASDAQ:IART) reported flat sales of $415.61 million and a net loss of $484.07 million, reflecting operational challenges such as margin pressure, remediation efforts, and delayed product relaunches. Despite these hurdles, the corporation generated positive free cash flow of $44.97 million and updated its Q3 and full-year 2025 guidance, projecting modest single-digit revenue growth.
Integra LifeSciences Holdings Corporation (NASDAQ:IART) is focusing on operational transformation and supply chain recovery as part of its strategic shift to stabilize and grow revenue. For some investors, the company also falls into the category of overlooked stocks, as analysts view it as undervalued with a forward P/E ratio of 5.19–5.80 and potential upside of 12–26% from current levels, though market caution remains due to volatility and ongoing operational headwinds.
7. Bausch Health Companies Inc. (NYSE:BHC)
Number of Hedge Fund Holders: 28
Bausch Health Companies Inc. (NYSE:BHC) is a global specialty pharmaceutical and medical device company focused on eye health, gastroenterology, neurology, and dermatology.
In Q2 2025, Bausch Health Companies Inc. (NYSE:BHC) reported strong operational results, with revenues of $2.53 billion, up 5.3% year-over-year, and net income surging 1,380% from the same quarter in 2024. Earnings per share rose to $0.40, surpassing analyst expectations. This performance reflects successful debt reduction initiatives, including plans to repay $900 million via senior notes redemption and loan repayments, strengthening the firm’s financial position.
Bausch Health Companies Inc. (NYSE:BHC) is also expanding its pipeline and portfolio through strategic acquisitions. The recent acquisition of DURECT Corporation enhances its hepatology segment with a focus on liver disease therapies, signaling a shift toward higher-growth therapeutic areas.
Investor sentiment has been positively influenced by an FDA breakthrough designation, boosting share performance amid market volatility.
6. CorMedix Inc. (NASDAQ:CRMD)
Number of Hedge Fund Holders: 29
CorMedix Inc. (NASDAQ:CRMD) is a biopharmaceutical company focused on therapies to prevent and treat life-threatening diseases, with DefenCath, an antimicrobial catheter lock for dialysis patients, as its lead commercial product.
In August 2025, CorMedix Inc. (NASDAQ:CRMD) announced the acquisition of Melinta Therapeutics, a commercial-stage company with seven marketed hospital- and clinic-focused infectious disease products, including REZZAYO™ for candidemia and invasive candidiasis. The acquisition, expected to close by September 1, will diversify CRMD’s portfolio, expand its acute hospital care presence, and enhance R&D and commercial capabilities. The combined company is projected to generate $305–$335 million in 2025 revenue, with annual synergies of $35–$45 million, and is expected to be accretive to earnings with double-digit EPS growth in 2026. This strategic move also highlights how CRMD, often categorized among overlooked stocks, is positioning itself for broader recognition in the healthcare space.
CorMedix Inc. (NASDAQ:CRMD) continues to see strong growth in DefenCath sales, supporting its market position. The corporation faces some legal challenges from shareholder lawsuits alleging misleading statements, contributing to stock volatility.
5. Royalty Pharma plc (NASDAQ:RPRX)
Number of Hedge Fund Holders: 30
Royalty Pharma plc (NASDAQ:RPRX) is a leading buyer of biopharmaceutical royalties, holding interests in over 35 commercial products, including Trikafta, Trelegy, Evrysdi, and Tremfya. The company also co-funds late-stage clinical trials and product launches in exchange for future royalties, supporting innovation in the biopharma industry.
In Q2 2025, Royalty Pharma plc (NASDAQ:RPRX) reported Portfolio Receipts of $727 million, up 20% year-over-year, with Royalty Receipts increasing 11% to $672 million. Growth was driven by top-performing products such as Voranigo, Trelegy, Evrysdi, and Tremfya. The business also completed the acquisition of its external manager, RP Management, LLC, creating an integrated structure and marking a key milestone in its evolution.
The corporation further strengthened its portfolio through a funding agreement with Revolution Medicines, providing up to $2 billion to support clinical development while securing a synthetic royalty of up to $1.25 billion on daraxonrasib, a Phase 3 candidate for RAS-addicted cancers. In August 2025, the firm acquired a royalty interest in Amgen’s Imdelltra, a bispecific T-cell engager (BiTE) targeting DLL3, for approximately $885 million, underscoring its strategy of investing in high-impact biopharmaceutical assets.
Looking ahead, Royalty Pharma plc (NASDAQ:RPRX) expects 2025 Portfolio Receipts to grow 9–12%, continuing its dynamic capital allocation strategy through share repurchases and new royalty investments. The company is preparing for its upcoming Investor Day to provide further insights into its growth strategy and pipeline developments.
4. Organon & Co. (NYSE:OGN)
Number of Hedge Fund Holders: 35
Organon & Co. (NYSE:OGN) is a pharmaceutical company focused on women’s health and biosimilars. In Q2 2025, the company reported $1.594 billion in revenue and an adjusted EPS of $1.00, slightly exceeding market expectations. Despite a modest year-over-year revenue decline, the company raised its full-year 2025 revenue guidance to $6.275–$6.375 billion, reflecting confidence in recovery driven by new product launches and biosimilar expansion.
Organon & Co. (NYSE:OGN) is actively managing its debt profile, aiming to reduce net leverage below 4.0x by the end of 2025 and further to 3.5x by 2026, while implementing cost-saving measures to increase operational flexibility. For investors searching for overlooked stocks with turnaround potential, OGN’s progress in strengthening its balance sheet and advancing its portfolio makes it a compelling case. Key portfolio developments include VTAMA (tapinarof) cream, which is advancing in market access, and biosimilars expected to offset losses from legacy drugs like Atozet in Europe.
Organon & Co. (NYSE:OGN)’s strategy emphasizes innovation in women’s health and biosimilars to counter competitive and regulatory pressures. CEO Kevin Ali’s recent stock purchase highlights confidence in the business’s trajectory.
3. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)
Number of Hedge Fund Holders: 46
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is a specialty pharmaceutical company focused on neuroscience, oncology, and rare diseases, with a global presence and products including Xywav and Epidiolex.
In August 2025, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) received FDA accelerated approval for Modeyso™ (dordaviprone), the first therapy for adult and pediatric patients with recurrent diffuse midline glioma carrying the H3 K27M mutation. This breakthrough addresses a critical unmet need in an aggressive brain cancer and represents a strategic expansion beyond the company’s legacy sleep disorder portfolio. The corporation plans an investor webcast on August 27, 2025, to present clinical data and commercialization strategy for Modeyso™.
The business also presented late-breaking clinical data at SLEEP 2025, including Phase 4 results for Xywav in narcolepsy, survival data for Ziihera in HER2-positive biliary tract cancer, and combination therapy data for Zepzelca with Tecentriq in small cell lung cancer, showing meaningful survival benefits.
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) will participate in the 2025 Wells Fargo Healthcare Conference in September to discuss pipeline progress and strategic plans.
2. Viatris Inc. (NASDAQ:VTRS)
Number of Hedge Fund Holders: 55
Viatris, Inc. (NASDAQ:VTRS) reported strong Q2 2025 results, generating approximately $79 million in revenue from new products while reaffirming its full-year financial guidance. The company continues to advance its pharmaceutical pipeline, with a focus on innovative therapies in ophthalmology, pain management, and women’s health.
In 2025, Viatris, Inc. (NASDAQ:VTRS)achieved several Phase 3 clinical milestones. MR-141 for presbyopia met all primary and secondary endpoints, providing rapid and sustained improvement in near vision without affecting distance vision, along with a consistent safety profile. MR-142 demonstrated effectiveness in keratorefractive patients under low-contrast conditions. XULANE LO, a low-dose birth control patch, showed strong results across endpoints, positioning it as a potential best-in-class option. Additionally, MR-107A-02, a fast-acting meloxicam, delivered significant benefits for moderate-to-severe acute pain in pivotal trials.
The business also expanded its portfolio with the approval of its first generic iron sucrose injection in the U.S., strengthening its presence in key therapeutic areas.
These developments highlight Viatris, Inc. (NASDAQ:VTRS)’s strategic shift from a traditional generics provider to a specialty pharmaceutical player. By leveraging Phase 3 successes and launching new products, VTRS aims to address unmet medical needs while enhancing long-term growth prospects and reinforcing its base business.
1. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Number of Hedge Fund Holders: 57
Teva Pharmaceutical Industries Limited (NYSE:TEVA) tops our list for being one of the overlooked stocks. It is experiencing strong momentum driven by recent product innovations and strategic initiatives. A major development is the FDA approval of AJOVY for pediatric migraine patients aged 6–17, expanding TEVA’s reach in the pediatric market. The company also reported its 10th consecutive quarter of growth, fueled by key products such as AUSTEDO, AJOVY, and UZEDY, which have seen significant sales increases in 2025.
Teva Pharmaceutical Industries Limited (NYSE:TEVA)’s “Pivot to Growth” strategy focuses on innovation, operational efficiency, and specialty pharmaceutical expansion. The company targets a 30% operating margin by 2027 and plans to achieve approximately $700 million in net cost savings, building on $140 million in annual run-rate savings already realized in 2025. This transformation supports both its generics foundation and the growth of specialty medicines.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is actively advancing its R&D pipeline, including duvakitug, a Phase 3 candidate for autoimmune diseases like ulcerative colitis and Crohn’s disease. This focus on innovative specialty therapies, alongside strong generics and biosimilars performance, positions Teva for long-term growth.
While we acknowledge the potential of TEVA 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 TEVA and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
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.
