In this article, we will look at the 12 Best Healthcare Stocks Under $50 to Invest In.
On January 27, Jared Holz, healthcare equity strategist at Mizuho, appeared on CNBC’s ‘Power Lunch’ to talk about healthcare stocks and the new proposals around Medicare Advantage. CNBC reported that the Trump administration proposed basically no change for most Medicare Advantage payments, as the plan called for a net average payment increase of a mere 0.09% next year, which appears to be an insignificant number and well below Wall Street’s expectations. This translates to major insurers, which get paid back by Medicare Advantage, getting “pummeled”.
Talking about whether the healthcare space has become uninvestable after the proposal or poses a big opportunity to buy the dip, Holz provided an investing perspective, stating that this has certainly been a “precarious” place to invest in the past couple of years. He added that this is presently just a proposal, and the final ruling is supposed to take place in a couple of months from now, in April. The edited or revised ruling may be a little bit better, according to him.
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Holz further stated that this has overall been a shock to the system, and investors had been positioning long, thinking that this was going to be a turnaround year. He thinks that the earnings and headlines delayed the dream for a little bit. However, the dream completely ending instead of being delayed seems a bit severe to him, as he believes we are going to be in a pocket now, for a year or maybe two, in which earnings don’t expand or grow as much as investors or the Street had thought. Ending the dream seems draconian to him, but he also stated that in a world where so many other stocks and subsectors are working incredibly well, this is going to be a tough one for a bit.
With these trends in view, let’s look at the best healthcare stocks under $50 to invest in.
Our Methodology
We used stock screeners to find the best healthcare stocks with a stock price below $50. We then chose the top 12 with the highest number of hedge fund holders, as of Q3 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was recorded on February 6.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12 Best Healthcare Stocks Under $50 to Invest In
12. Genmab A/S (NASDAQ:GMAB)
Number of Hedge Fund Holders: 20
Genmab A/S (NASDAQ:GMAB) is one of the best healthcare stocks under $50 to invest in. Genmab A/S (NASDAQ:GMAB) announced on January 21 that the worldwide net trade sales of DARZALEX, including sales of the subcutaneous product (daratumumab and hyaluronidase-fihj, sold under the tradename DARZALEX FASPRO® in the U.S.), as reported by J&J, came up to $14.351 billion in 2025. Net trade sales were $8.266 billion in the U.S. and $6.085 billion in the rest of the world. Management reported that Genmab A/S (NASDAQ:GMAB) receives royalties on the worldwide net sales of DARZALEX under the exclusive worldwide license to J&J for the development, manufacture, and commercialization of daratumumab. This includes both the intravenous and SC products.
In another development, H.C. Wainwright revised the price target on Genmab A/S (NASDAQ:GMAB) to $39 from $41 on January 20, maintaining a Buy rating on the shares. The firm told investors that although EPCORE DLBCL-1 failed its primary endpoint, Epkinly may still gain full approval. BofA also adjusted the price target on Genmab A/S (NASDAQ:GMAB) to $38.50 from $34.70 on January 19, reaffirming a Buy rating. The firm stated that the company previously outlined a “catalyst-rich” fiscal 2026, and BofA is “bullish” on Genmab A/S’s (NASDAQ:GMAB) major catalysts in 2026 as it believes each could offer a $2 billion peak sales opportunity in attractive markets.
Genmab A/S (NASDAQ:GMAB) is an international biotechnology company that develops human antibody therapeutics for the treatment of cancer and other diseases. Its product pipeline includes DARZALEX to treat certain indications of multiple myeloma, TEPEZZA for the treatment of thyroid eye disease, and Arzerra to treat certain indications of chronic lymphocytic leukemia.
11. Elanco Animal Health Incorporated (NYSE:ELAN)
Number of Hedge Fund Holders: 26
Elanco Animal Health Incorporated (NYSE:ELAN) is one of the best healthcare stocks under $50 to invest in. Elanco Animal Health Incorporated (NYSE:ELAN) received several rating updates in January, with BofA most recently adjusting the price target on the stock to $28 from $25 on January 30 and maintaining a Buy rating. The firm lifted its price target going into the fiscal Q4 earnings season, telling investors that it did so to reflect stronger operational results and execution. UBS also raised the price target on Elanco Animal Health Incorporated (NYSE:ELAN) to $30 from $27 on January 29, reaffirming a Buy rating.
In addition, Piper Sandler upgraded Elanco Animal Health Incorporated (NYSE:ELAN) to Overweight from Neutral on January 22. The firm raised the price target to $30 from $24, telling investors after attending the VMX conference that the company “is making some serious inroads” with corporate groups. It believes that the corporate channel reflects a new driver for the company, and added that it found little push back to the idea that Elanco Animal Health Incorporated (NYSE:ELAN) will raise prices on its core franchise.
Elanco Animal Health Incorporated (NYSE:ELAN) is an animal health company that delivers services and products that prevent and treat disease in pets and farm animals. Its diverse portfolio serves animals across various species, primarily cats, dogs, cattle, swine, poultry, and sheep.
