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.
10. Sanofi (NASDAQ:SNY)
Number of Hedge Fund Holders: 32
Sanofi (NASDAQ:SNY) is one of the best healthcare stocks under $50 to invest in. Kepler Capital maintained a Hold on Sanofi (NASDAQ:SNY) on February 3 with a price target of €85. The same day, Sanofi (NASDAQ:SNY) announced plans to execute a share buyback program of €1 billion in 2026, entering into a mandate with an investment service provider for the program on February 2. The terms of the mandate stipulate that Sanofi (NASDAQ:SNY) will repurchase its own shares for a total consideration of up to €1 billion, at the latest between February 3 and December 31.
In a separate development, Sanofi (NASDAQ:SNY) announced positive results for the LEAP2MONO phase 3 study on February 2, stating that venglustat met the primary and three out of four key secondary endpoints in adults and pediatric patients 12 years and older with neurological manifestations of type 3 Gaucher disease, which is a rare lysosomal storage disorder. Sanofi (NASDAQ:SNY) clarified that Venglustat is an investigational glucosylceramide synthase inhibitor (GCSi) that works by bringing down the abnormal accumulation of sugar-and-fat molecules in cells and organs.
Sanofi (NASDAQ:SNY) researches, produces, and distributes pharmaceutical products. The company’s operations are divided into the Pharmaceuticals, Consumer Healthcare, and Vaccines segments.
9. Exelixis, Inc. (NASDAQ:EXEL)
Number of Hedge Fund Holders: 33
Exelixis, Inc. (NASDAQ:EXEL) is one of the best healthcare stocks under $50 to invest in. On February 4, Barclays revised the price target on Exelixis, Inc. (NASDAQ:EXEL) to $44 from $41 and maintained an Equal Weight rating on the shares, releasing the update as part of a fiscal Q4 earnings preview for the biotech group.
In another development, Exelixis, Inc. (NASDAQ:EXEL) announced on February 2 the acceptance of its New Drug Application (NDA) for zanzalintinib, in combination with atezolizumab, for review in the U.S. to treat adult patients with metastatic colorectal cancer who have been previously treated with fluoropyrimidine-, oxaliplatin- and irinotecan-based chemotherapy, and, if RAS wild-type, an anti-epidermal growth factor receptor therapy.
Dana T. Aftab, Ph.D., Executive Vice President, Research and Development, Exelixis, Inc. (NASDAQ:EXEL), stated that zanzalintinib holds the potential to become a significant advancement in a challenging treatment landscape and provide a novel mechanism of action, in combination with atezolizumab, for patients with previously treated metastatic colorectal cancer if it is approved. Management reported that the Food and Drug Administration assigned a standard review with a Prescription Drug User Fee Act target action date of December 3, 2026.
Exelixis, Inc. (NASDAQ:EXEL) discovers, develops, and commercializes new medicines for difficult-to-treat cancers. Its product portfolio includes cabometyx, cometriq, and cotellic.
8. Royalty Pharma Plc (NASDAQ:RPRX)
Number of Hedge Fund Holders: 34
Royalty Pharma Plc (NASDAQ:RPRX) is one of the best healthcare stocks under $50 to invest in. On January 30, Royalty Pharma Plc (NASDAQ:RPRX) was upgraded to Buy from Neutral by UBS, with the firm raising the price target on the stock to $49 from $38. The firm told investors that Royalty Pharma Plc (NASDAQ:RPRX) has delivered a series of attractive royalty deals, “meaningfully” bolstering its growth profile. UBS sees a “catalyst-rich” 2026 for the company, with the potential of driving “significant stock upside on upcoming de-risking events.”
It added that Royalty Pharma Plc (NASDAQ:RPRX) has an attractive growth profile on both an absolute and relative basis compared to several large-cap pharma names experiencing material loss of exclusivities.
In addition to UBS, Citi also lifted the price target on Royalty Pharma Plc (NASDAQ:RPRX) to $50 from $48 on January 27, maintaining a Buy rating and adjusting price targets in the biopharma group as part of a fiscal Q4 preview. According to the firm, factors such as “beatable” estimates and reduced policy risk should create a favorable setup for the group in 2026.
Royalty Pharma Plc (NASDAQ:RPRX) funds innovation in the biopharmaceutical industry and buys biopharmaceutical royalties. It collaborates with innovators from research hospitals, non-profits, and academic institutions through small and mid-cap biotech companies to global pharma companies. The company funds innovation in the industry both directly, by partnering with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly, by acquiring existing royalties from the original innovators.
7. Moderna, Inc. (NASDAQ:MRNA)
Number of Hedge Fund Holders: 42
Moderna, Inc. (NASDAQ:MRNA) is one of the best healthcare stocks under $50 to invest in. Morgan Stanley reiterated a Hold rating on Moderna, Inc. (NASDAQ:MRNA) on February 2, setting a price target of $28.00. In a separate development, Moderna, Inc. (NASDAQ:MRNA) announced on January 29 a strategic collaboration with Recordati for the advancement of the former’s investigational propionic acidemia therapeutic, mRNA-3927, through the final stages of clinical development and global commercialization upon approval.
Based in Milan, Italy, Recordati is an international pharmaceutical group that offers treatments for specialty and primary care and rare diseases. Management reported that through the agreement, Moderna, Inc. (NASDAQ:MRNA) would continue to lead mRNA-3927’s clinical development approval, with Recordati leading commercialization. The terms of the agreement entail that Moderna, Inc. (NASDAQ:MRNA) would receive an upfront payment of $50 million and up to an additional $110 million in near-term development and regulatory milestones, along with commercial and sales milestones and tiered royalties on net sales. The company added that mRNA-3927 is currently under evaluation in a registrational study that has reached target enrollment, and that it anticipates a potential data readout in 2026.
Moderna, Inc. (NASDAQ:MRNA) is a biotech company that develops transformative medicines based on messenger RNA (mRNA). The company’s operations are divided into the following geographical segments: United States, Europe, and Rest of World. Its product pipeline includes several modalities, including prophylactic vaccines, cancer vaccines, intratumoral immuno-oncology, localized regenerative therapeutics, systemic secreted therapeutics, inhaled pulmonary therapeutics, and systemic intracellular therapeutics.
6. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders: 50
Novo Nordisk A/S (NYSE:NVO) is one of the best healthcare stocks under $50 to invest in. On February 5, BofA adjusted the price target on Novo Nordisk A/S (NYSE:NVO) to DKK 350 from DKK 400, reiterating a Neutral rating and lowering its EPS forecasts 7%-10% on the company’s weak 2026 guidance.
The same day, Novo Nordisk A/S (NYSE:NVO) issued a statement about the announcement by Hims & Hers that it would begin offering compounded copies of the Wegovy pill at an introductory price of $49 per month. Novo Nordisk A/S (NYSE:NVO) called the action by Hims & Hers an “illegal mass compounding” posing considerable risk to patient safety. It added that it would take regulatory and legal action to safeguard its patients, its intellectual property, and the integrity of the US gold-standard drug approval framework.
Novo Nordisk A/S (NYSE:NVO) further stated that it is the sole manufacturer of the FDA-approved Wegovy® pill formulated with SNAC technology, capable of facilitating semaglutide absorption through oral administration. The pill is available in all doses, in full supply, nationwide in the United States, and the compounded semaglutide is not approved by the FDA. The company added that it may contain untested doses, impurities, and unnecessary additives.
Novo Nordisk A/S (NYSE:NVO) is a global healthcare company specializing in diabetes care. It develops, discovers, manufactures, and markets pharmaceutical products. Its operations are divided into two business segments: biopharmaceuticals and diabetes and obesity care. The latter segment covers GLP-1, insulin, and other protein-related products.
5. Roivant Sciences Ltd. (NASDAQ:ROIV)
Number of Hedge Fund Holders: 54
Roivant Sciences Ltd. (NASDAQ:ROIV) is one of the best healthcare stocks under $50 to invest in. TD Cowen maintained a bullish outlook on Roivant Sciences Ltd. (NASDAQ:ROIV) on February 6, revising the price target on the stock to $38 from $28 and maintaining a Buy rating. The rating update came the same day Roivant Sciences Ltd. (NASDAQ:ROIV) announced positive Phase 2 results for brepocitinib in cutaneous sarcoidosis (CS) and reported its financial results for Q3 ended December 31, 2025.
Roivant Sciences Ltd. (NASDAQ:ROIV) reported that brepocitinib 45 mg considerably improved cutaneous sarcoidosis disease activity and exhibited rapid, deep, and sustained improvements across all other efficacy endpoints measured with a consistent safety profile. Management further stated that an NDA was submitted to the FDA for brepocitinib in dermatomyositis (DM), with topline data from Phase 3 studies in non-infectious uveitis (NIU) anticipated in H2 of calendar year 2026. Roivant Sciences Ltd. (NASDAQ:ROIV) is continually exploring other indications for brepocitinib.
In addition, the company reported $4.5 billion in consolidated cash, cash equivalents, restricted cash, and marketable securities as of December 31, 2025, supporting cash runway into profitability.
Roivant Sciences Ltd. (NASDAQ:ROIV) is a biopharmaceutical company that develops transformative medicines. Its product portfolio comprises Vtama, Batoclimab, Brepocitinib, Namilumab, and RVT-2001, which treat psoriasis, atopic dermatitis, thyroid eye disease, and other illnesses. Its product candidates extend across various therapeutic areas, including oncology, immunology, dermatology, and hematology.
4. Viatris Inc. (NASDAQ:VTRS)
Number of Hedge Fund Holders: 55
Viatris Inc. (NASDAQ:VTRS) is one of the best healthcare stocks under $50 to invest in. Viatris Inc. (NASDAQ:VTRS) received a rating update from Piper Sandler on January 28, which adjusted the price target on the stock to $12 from $9 while maintaining a Neutral rating on the shares. The rating update came ahead of the quarterly results, with the firm citing strength for the brand business across a range of geographies, along with the possibility of continued steady contribution in developed markets from new product launches.
In a separate development, Viatris Inc. (NASDAQ:VTRS) announced on January 20 the launch of Inpefa® (sotagliflozin) in the United Arab Emirates (UAE), making it the first country within the Viatris territories to commercialize the treatment. The company plans future launches in several countries over the coming years, which supports its strategy of expanding treatment access in key markets outside of Europe and the United States.
Viatris Inc. (NASDAQ:VTRS) further stated that Inpefa is the first and only dual SGLT1/2 inhibitor that holds approval for the treatment of heart failure, and is approved in the UAE and the United States to lower the risk of hospitalization for heart failure, risk of cardiovascular death, and urgent heart failure visits in adults with heart failure or type 2 diabetes mellitus, chronic kidney disease, and other cardiovascular risk factors.
Viatris Inc. (NASDAQ:VTRS) is a global healthcare company that provides healthcare and pharmaceutical products. The company’s medicines and treatments span various therapeutic areas, including oncology, cardiovascular, dermatology, immunology, eye care, gastroenterology, and women’s healthcare. Its operations are divided into the following segments: Developed Markets, Greater China, JANZ, and Emerging Markets.
3. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Number of Hedge Fund Holders: 60
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is one of the best healthcare stocks under $50 to invest in. Barclays maintained an Overweight rating on Teva Pharmaceutical Industries Limited (NYSE:TEVA) on January 30, adjusting the price target on the stock to $38 from $35. It told investors that it updated the company’s model after the fiscal Q4 report, and expressed confidence in the shares at these levels.
In addition to Barclays, Scotiabank also raised the price target on Teva Pharmaceutical Industries Limited (NYSE:TEVA) to $40 from $35 on January 29 and maintained an Outperform rating on the shares. The firm expressed optimism for the stock after the fiscal Q4 results, and told investors in a research note that it upgraded the price target because of the company’s execution continually surpassing expectations.
The rating updates came after Teva Pharmaceutical Industries Limited (NYSE:TEVA) announced on January 28 that it delivered three consecutive years of growth, with 2025 revenues of $17.3 billion, reflecting a 4% year-over-year growth in U.S. dollars, or 3% in local currency terms, compared to 2024. Revenues rose 5% YoY in local currency, excluding Japan BV. The company’s key innovation brands continued to drive growth, with 2025 revenues exceeding $3 billion, up 35% year-over-year in local currency. Fiscal Q4 2025 marked the first quarter in which these brands collectively delivered ~$1 billion of revenues.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) develops, produces, and sells medicines. Its operations are divided into the US, Europe, and International Markets geographical segments. Each business segment covers the entire product portfolio in that region, including specialty, generics, and over-the-counter (OTC) products.
2. Centene Corporation (NYSE:CNC)
Number of Hedge Fund Holders: 72
Centene Corporation (NYSE:CNC) is one of the best healthcare stocks under $50 to invest in. Morgan Stanley reaffirmed a Hold rating on Centene Corporation (NYSE:CNC) on February 6, setting a price target of $38.00.
The rating update came the same day Centene Corporation (NYSE:CNC) announced its 2025 results and guidance, reporting 2025 full year GAAP diluted loss per share of $13.53 and adjusted diluted Earnings Per Share of $2.08. Management reported a consolidated HBR of 94.3% in fiscal Q4 2025, which includes a Commercial HBR of 95.4%, which was 100 basis points above expectations, driven by net out-of-period items. In addition, Medicaid HBR was 93.0% in the quarter, representing 40 basis points of sequential improvement compared to Q3 and reflecting continued progress.
Centene Corporation (NYSE:CNC) further stated that it is positioned to deliver renewed adjusted diluted EPS growth and meaningful margin improvement in 2026, and expects full-year 2026 adjusted diluted EPS to be greater than $3.00. This marks significant progress toward restoring the enterprise’s embedded earnings power.
Centene Corporation (NYSE:CNC) is a healthcare enterprise that provides programs and services to government-sponsored healthcare programs. The company’s operations are divided into the following segments: Medicaid, Medicare, Commercial, and Other.
1. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 84
Pfizer Inc. (NYSE:PFE) is one of the best healthcare stocks under $50 to invest in. Pfizer Inc. (NYSE:PFE) announced on February 6 that the U.S. Food and Drug Administration accepted and granted Priority Review for its supplemental Biologics License Application for HYMPAVZI® for the expansion of the approved indication to include treatment of hemophilia A or B patients 6 years and older with inhibitors, and pediatric patients with hemophilia A or B without inhibitors. HYMPAVZI currently holds approval for the treatment of patients 12 years of age and older with hemophilia A without factor VIII inhibitors, or hemophilia B without factor IX inhibitors in the United States.
Pfizer Inc. (NYSE:PFE) further reported that the FDA set a Prescription Drug User Fee Act action date in Q2 2026. If approved, HYMPAVZI would provide a combination of bleed protection with a straightforward, once-weekly subcutaneous injection administration that requires minimal preparation without a need for routine treatment-related lab monitoring for these difficult-to-treat patient populations.
In another development, Pfizer Inc. (NYSE:PFE) announced on February 5 the launch of its program on TrumpRx to make innovative medicines more accessible and affordable for Americans. The program provides Americans with considerable discounts off list prices on over 30 medicines. Management reported that the initiative is a part of Pfizer Inc.’s (NYSE:PFE) broader landmark Most Favored Nation agreement with the U.S. government.
Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company that manufactures, develops, markets, and sells biopharmaceutical products worldwide. It advances wellness, prevention, treatment, and cures in developing and emerging markets.
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