In this article, we will be taking a look at the 12 Cheap Healthcare Stocks to Buy Now.
Mizuho health care sector strategist Jared Holz made an appearance on CNBC’s “The Exchange” on July 21 to discuss the challenges facing the healthcare industry and whether there are any opportunities in the field.
He said that it would be wonderful to occasionally cover a sector that outperforms the market, and said that he is undoubtedly upset with the current dynamics in the healthcare industry.
According to the strategist, the only times the healthcare industry has outperformed the market over the last ten years, and even then, that wasn’t a good setup, are when the market was down. Holz believes that the performance of the large-cap pharmaceutical business is significantly impacted by a cascade of problems.
He added to CNBC that nothing even comes close to this kind of pressure across the board if we go back a few decades, making this the worst the healthcare industry has ever experienced. Holz identified managed care and pharmaceuticals as the main offenders, claiming that they are bearing the most burden in terms of market capitalization.
With these trends in mind, let’s now take a look at the cheap healthcare stocks to buy now.
Our Methodology
Our methodology began by screening stocks using a stock analysis filter, selecting companies with a market capitalization above $2 billion and a forward P/E ratio below 15. From this filtered pool, we identified the top 12 stocks and ranked them according to their P/E ratios as of September 10, 2025.
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 12 cheap healthcare stocks to buy now.
12. Bausch Health Companies Inc. (NYSE:BHC)
Forward PE Ratio:1.45
Bausch Health Companies Inc. (NYSE:BHC), a global specialty pharmaceutical company, has recently gained attention as an undervalued player in healthcare due to strategic acquisitions and pipeline developments rather than financial trends alone. The company focuses on areas including eye health, gastroenterology, hepatology, neurology, and dermatology. It is among the cheap healthcare stocks.
The most notable development is Bausch Health Companies Inc. (NYSE:BHC)’s acquisition of DURECT Corporation, announced in July 2025 and expected to close in Q3 2025. Valued at $63 million upfront with up to $350 million in milestone payments, the deal brings larsucosterol, an epigenetic modulator with FDA Breakthrough Therapy designation for alcoholic hepatitis (AH), a disease with no approved therapies in the U.S. This move strengthens the company’s hepatology portfolio alongside its Phase 3 rifaximin SSD program targeting cirrhotic patients.
Bausch Health Companies Inc. (NYSE:BHC) is also advancing other key pipeline assets. Larsucosterol could become a first-in-class therapy addressing an estimated 164,000 annual U.S. hospitalizations for AH. Rifaximin SSD is in Phase 3 trials to prevent hepatic encephalopathy in cirrhosis patients, with topline results expected by early 2026. In the medical aesthetics space, the firm recently launched the Fraxel FTX laser in the U.S., obtained Canadian clearance for Thermage FLX skin tightening, and awaits European approval for Clear + Brilliant Touch.
These moves reflect a broader strategy of focusing on high-value specialty therapeutics and underserved niches rather than mass-market competition. With larsucosterol’s potential breakthrough status, Bausch Health Companies Inc. (NYSE:BHC) positions itself as a leader in hepatology. Recently, the DURECT tender offer was extended to September 10, positive reimbursement for PrCABTREOTM gel in Canada was announced, and the company reinforced its leadership with strategic board appointments and continued patient-focused initiatives.
11. Organon & Co. (NYSE:OGN)
Forward PE Ratio: 2.73
Organon & Co. (NYSE:OGN), a global healthcare company focused on women’s health, biosimilars, and established pharmaceuticals, has been steadily expanding its footprint since spinning off from Merck in 2021. The company has strategically targeted biosimilars and critical therapies for underserved populations, positioning itself for growth in specialty and high-value treatments.
This month, Organon & Co. (NYSE:OGN) scored a major milestone with FDA approval of BILDYOS and BILPREVDA, biosimilars to PROLIA and XGEVA, respectively. Developed in partnership with Shanghai Henlius Biotech, these approvals mark a significant step in improving access to osteoporosis and bone cancer treatments. By providing cost-effective alternatives without compromising efficacy, the business aims to address the needs of aging populations and patients requiring critical bone care.
The corporation’s broader strategy reflects a pivot toward biosimilars as a growth engine while maintaining its core focus on women’s health and dermatology products. Organon & Co. (NYSE:OGN) is also expanding into oncology and immunology, building a pipeline designed to balance challenges from legacy brands with aggressive entries into high-value generics and specialty therapies.
10. Viatris Inc. (NASDAQ:VTRS)
Forward PE Ratio: 4.40
Viatris Inc. (NASDAQ:VTRS), a global healthcare company formed from the 2020 merger of Mylan and Pfizer’s Upjohn division, continues to expand its presence in both generics and specialty pharmaceuticals. Operating in over 165 countries, the company blends established medicines with innovative therapies, positioning itself as a cost-effective healthcare stock backed by a growing late-stage pipeline.
A key development in 2025 is the FDA approval of Viatris Inc. (NASDAQ:VTRS)’s first generic iron sucrose injection, a version of Venofer, which had annual U.S. sales of approximately $515 million. This approval marks a significant entry into the intravenous iron market and reflects the firm’s focus on high-value complex generics as a cornerstone of its growth strategy.
The corporation has also reported positive late-stage trial results for several pipeline assets, including fast-acting meloxicam for acute pain, the next-generation birth control patch XULANE LO, ophthalmology products for presbyopia, and new indications for EFFEXOR in Japan. For investors tracking cheap healthcare stocks, these successful Phase 3 readouts reinforce the business’s late-stage pipeline and support upcoming product launches and regulatory filings through 2026.
Viatris Inc. (NASDAQ:VTRS)’s strategic emphasis on complex generics and specialty products highlights its shift from a primarily generic-focused business to a more innovation-driven company. CEO Scott A. Smith has underscored the resilience of the diversified portfolio and the importance of commercial execution for new launches.
9. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)
Forward PE Ratio: 5.91
Jazz Pharmaceuticals plc (NASDAQ:JAZZ), a global biopharmaceutical leader, develops and commercializes therapies for complex conditions in oncology, neuroscience, and sleep medicine. Its portfolio includes treatments for narcolepsy, epilepsy, and rare cancers, reflecting a focus on addressing unmet medical needs.
The company recently reached a major milestone with the FDA’s accelerated approval of Modeyso (dordaviprone) on August 6, 2025, for treating H3 K27M-mutant diffuse midline glioma, a rare and aggressive brain cancer affecting around 2,000 patients annually in the U.S., primarily children and young adults. Modeyso is the first and only therapy approved for patients aged one year and older with progressive disease following prior treatment. In clinical trials, the drug demonstrated a 22% overall response rate among 50 patients, with a median response duration of 10.3 months; 73% of responders maintained their response for over six months. Modeyso is administered as a weekly oral capsule and will become commercially available soon, with continued approval contingent on the ongoing Phase 3 ACTION confirmatory trial.
In addition to Modeyso, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is diversifying its pipeline and expanding its strategic focus. The business recently licensed SAN2355, a preclinical epilepsy drug, strengthening its neuroscience portfolio. In oncology, it is advancing zanidatamab in Phase 3 for advanced gastroesophageal cancers and pursuing regulatory approval for Zepzelca as a first-line treatment for extensive-stage small cell lung cancer.
8. DENTSPLY SIRONA Inc. (NASDAQ:XRAY)
Forward PE Ratio: 7.07
DENTSPLY SIRONA Inc. (NASDAQ:XRAY), the world’s largest manufacturer of professional dental products and technologies, operates across imaging, CAD/CAM, endodontics, restoratives, and healthcare consumables through Wellspect. Its product portfolio includes intraoral scanners, 3D printers, motorized handpieces, and cloud-based platforms like DS Core, which support digital dentistry workflows.
This month, DENTSPLY SIRONA Inc. (NASDAQ:XRAY) concluded its strategic review of Wellspect Healthcare and decided to retain the unit rather than divest it. Management cited Wellspect’s strong growth prospects, innovative products such as LoFric catheters, and significant untapped market potential in global continence care. CEO Dan Scavilla highlighted that recent investments in Wellspect are driving solid organic sales growth and that the unit’s recurring cash flows will support further innovation across the firm’s dental and healthcare businesses.
Given this backdrop, DENTSPLY SIRONA Inc. (NASDAQ:XRAY) has drawn attention from those tracking cheap healthcare stocks, as the company’s mix of recurring revenue and innovation offers both stability and growth potential. The firm also showcased its latest developments at major healthcare conferences in September 2025, including the Morgan Stanley Global Healthcare Conference and the Baird Global Healthcare Conference. Additionally, the annual DS World event in Las Vegas will highlight new digital and connected dental solutions, reinforcing the company’s push into integrated dental technologies.
7. Perrigo Company Plc (NYSE:PRGO)
Forward PE Ratio: 7.07
Perrigo Company plc (NYSE:PRGO), a global healthcare supplier, specializes in over-the-counter (OTC) and self-care products, generic prescription pharmaceuticals, and active pharmaceutical ingredients. The company is known for its private-label consumer health products sold through major retailers such as Walmart, Amazon, Costco, and CVS, with key brands including Opill, Mederma, Compeed, EllaOne, and Jungle Formula.
Perrigo Company plc (NYSE:PRGO) advanced its strategic plan to “Stabilize, Streamline, and Strengthen” by divesting non-core businesses. A notable move is the sale of its Dermacosmetics branded business to KKR-managed Kairos Bidco AB for up to €327 million, expected to close in Q1 2026. The divestiture reflects the company’s focus on its core self-care and private-label consumer health offerings.
Leadership confidence was also evident through insider purchases in early September, with executives such as EVP Charles Atkinson and Chief Scientific Officer Lennox Abigail acquiring shares worth $23,200. Such activity underscores management’s belief in the company’s growth prospects.
Perrigo Company plc (NYSE:PRGO)’s senior management, including President and CEO Patrick Lockwood-Taylor, participated in the Barclays Global Consumer Staples Conference, highlighting ongoing investor engagement and transparency regarding strategic direction and product pipeline.
6. Royalty Pharma plc (NASDAQ:RPRX)
Forward PE Ratio: 7.17
Royalty Pharma plc (NASDAQ:RPRX), a biopharmaceutical company specializing in acquiring and managing royalties from marketed drugs, continues to demonstrate strong growth and strategic expansion. By purchasing royalty interests, the company earns income as partnered medicines generate sales, while also funding innovation in the biopharma sector.
In its Q2 2025 results, announced in August, Royalty Pharma plc (NASDAQ:RPRX) reported a 20% increase in Portfolio Receipts to $727 million and an 11% rise in Royalty Receipts to $672 million. Key contributors included royalties from Voranigo, Trelegy, Evrysdi, and Tremfya, highlighting the performance and diversification of its portfolio.
A major milestone was the acquisition of its external manager, RP Management, LLC, in May 2025. This integration consolidates intellectual capital and streamlines operations, marking a strategic evolution toward a fully integrated public company. For investors scanning cheap healthcare stocks, RPRX’s model offers a differentiated way to gain exposure to a broad pipeline of therapies through royalty streams rather than direct drug development risk.
RPRX is also advancing innovative funding partnerships. In September, it announced a $2 billion funding arrangement with Revolution Medicines, including a synthetic royalty on daraxonrasib, a Phase 3 therapy targeting RAS-addicted cancers. Earlier, FDA approval of Adstiladrin, a gene therapy for bladder cancer, triggered a $200 million milestone payment to the company, reflecting exposure to cutting-edge therapies.
To strengthen liquidity for future royalty acquisitions and investments, Royalty Pharma plc (NASDAQ:RPRX) priced $2 billion in senior unsecured notes in early September 2025. The company also released a Deloitte-conducted biopharma royalty market study on September 10, signaling leadership and active engagement with industry trends that shape its business model and strategy.
5. Bristol-Myers Squibb Company (NYSE:BMY)
Forward PE Ratio: 7.38
Bristol-Myers Squibb Company (NYSE:BMY), a global biopharmaceutical leader, specializes in oncology, immunology, cardiovascular, hematology, and neuroscience therapies, with blockbuster drugs including Eliquis and Opdivo.
In July 2025, Bristol-Myers Squibb Company (NYSE:BMY) partnered with Bain Capital to launch a new independent biotech focused on autoimmune disease therapies. The spinout, funded with $300 million, includes five immunology programs targeting pathways such as TLR7/8, TYK2, and IL2. BMS retains a 20% stake, anticipating long-term benefits through milestones and royalties.
BMY is also advancing immunotherapy for lung cancer. In September 2025, it and BioNTech reported promising Phase II results for BNT327/pumitamig in small cell lung cancer, achieving a 76% tumor reduction rate. The therapy is now in Phase III trials, supported by a collaboration valued at up to $11.1 billion. In addition, updated Phase I data for the PRMT5 inhibitor BMS-986504 in non-small cell lung cancer showed a 29% response rate in patients with MTAP gene deletions, with biomarker strategies guiding further development.
Oncology innovation continues with the July 2025 launch of a clinical trial for Iza-bren, an investigational breast cancer therapy targeting patients unsuitable for conventional immunotherapies. The business is also leveraging artificial intelligence to accelerate drug discovery and improve clinical trial efficiency, enhancing both pipeline innovation and cost effectiveness.
Despite these new initiatives, Bristol-Myers Squibb Company (NYSE:BMY) maintains strong revenue from established products. In Q2 2025, Eliquis sales rose 8% to $3.7 billion, while Opdivo revenue grew 7% to $2.6 billion, underscoring the continued strength of its legacy brands alongside an expanding pipeline of next-generation therapies.
4. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Forward PE Ratio: 7.53
Teva Pharmaceutical Industries Limited (NYSE:TEVA), a global pharmaceutical company, continues its transition from a generics-focused firm to a biopharmaceutical leader. The company operates nine U.S. manufacturing sites and maintains a global supply chain across Canada, Europe, and Israel, making it the largest generic manufacturer in the U.S.
Teva Pharmaceutical Industries Limited (NYSE:TEVA)’s growth strategy emphasizes both specialty products and biopharmaceutical innovation. Key drivers include Austedo, expected to surpass $2.5 billion in sales by 2027, and Uzedy, projected at $200 million in 2025. The corporation is also advancing new launches, such as an ICS-SABA combination inhaler targeted for release before 2027 and olanzapine planned for Q4 2026. The business aims to achieve a 30% operating margin by 2027, alongside plans to launch 5 new biosimilars within the same timeframe. Among cheap healthcare stocks, TEVA stands out as it combines the stability of its generics base with the momentum of an expanding biopharma pipeline.
Highlighting its innovative pipeline, Teva Pharmaceutical Industries Limited (NYSE:TEVA)’s investigational drug emrusolmin (TEV-56286) received FDA Fast Track designation on September 9, 2025, for the treatment of Multiple System Atrophy (MSA), a rare neurodegenerative disorder. This designation supports accelerated development and regulatory review, underscoring the company’s commitment to high-value therapies for serious conditions.
3. Pfizer Inc. (NYSE:PFE)
Forward PE Ratio: 8.70
Pfizer Inc. (NYSE:PFE), a global pharmaceutical leader, continues to advance innovative medicines and vaccines across oncology, immunology, rare diseases, and more. The company gained worldwide recognition for its COVID-19 vaccine developed with BioNTech, a major contributor to pandemic response efforts.
A key recent development is the positive Phase 3 topline data for Pfizer Inc. (NYSE:PFE)’s LP.8.1-adapted COVID-19 vaccine 2025-2026 formula, announced on September 7, 2025. The updated vaccine demonstrated at least a four-fold increase in neutralizing antibody titers in adults aged 65+ and high-risk adults aged 18–64. This data supports the FDA approval of the new formulation, ensuring continued efficacy against emerging SARS-CoV-2 variants and reflecting Pfizer’s commitment to maintaining leadership in COVID-19 vaccine innovation.
Beyond vaccines, PFE is advancing its oncology portfolio. In August 2025, PADCEV combined with KEYTRUDA showed improved survival rates for bladder cancer patients, while XTANDI with leuprolide improved outcomes in high-risk, non-metastatic prostate cancer. These advances highlight the company’s focus on high-need cancer indications, positioning Pfizer among cheap healthcare stocks that continue to deliver strong innovation alongside affordability.
Pfizer Inc. (NYSE:PFE) is also progressing in hematology with HYMPAVZI, a weekly subcutaneous treatment for hemophilia A or B patients with inhibitors, which significantly reduced bleeding episodes compared to on-demand therapy.
Strategically, PFE is pursuing $4.5 billion in cost savings by the end of 2025, with reinvestment into R&D to sustain innovation amid patent expirations for products like Eliquis. Global licensing agreements, such as the July 2025 deal with 3SBio, further expand market reach.
2. Universal Health Services, Inc. (NYSE:UHS)
Forward PE Ratio: 8.86
Universal Health Services, Inc. (NYSE:UHS) is a leading healthcare provider operating acute care hospitals, behavioral health centers, outpatient facilities, and ambulatory care locations across the U.S., Puerto Rico, and the U.K. The company continues to expand its operational scale while emphasizing patient-centered care and technological innovation.
In Q2 2025, UHS reported strong financial performance, with net revenues rising 9.6% to $4.284 billion and net income of $353.2 million ($5.43 per diluted share). This growth was supported by approximately $101 million in incremental Medicaid reimbursements, including $58 million from Tennessee’s new directed payment program, reflecting a broader trend of enhanced Medicaid support boosting the company’s revenue streams.
Universal Health Services, Inc. (NYSE:UHS) also advanced its infrastructure with the opening of a 142-bed acute care hospital in Washington, D.C., in April 2025. While the new facility generated a pre-tax loss of about $25 million due to initial startup costs, it aligns with the corporation’s strategy to improve access to behavioral and acute care services, particularly in underserved urban areas.
Technology adoption remains a key focus, highlighted by the launch of Hippocratic AI’s generative AI healthcare agents to enhance post-discharge patient engagement, reduce readmissions, and improve care continuity. This demonstrates the business’s forward-looking approach to integrating AI for better patient outcomes and operational efficiency.
Universal Health Services, Inc. (NYSE:UHS) continues to prioritize quality and safety, with multiple hospitals earning top Leapfrog safety scores and several subsidiaries recognized by Newsweek’s Best Addiction Treatment Centers for 2025. These initiatives underscore the company’s commitment to expanding specialized care services and maintaining high standards in healthcare delivery.
1. Teleflex Incorporated (NYSE:TFX)
Forward PE Ratio: 9.01
Teleflex Incorporated (NYSE:TFX) tops our list for being one of the cheap healthcare stocks. It is a global medical technology company and specializes in critical care and surgical devices across hospital and ambulatory settings, including vascular access, interventional urology, respiratory and anesthesia devices, and surgical tools. The company focuses on improving patient outcomes through innovative procedural support.
A major strategic move in 2025 is Teleflex Incorporated (NYSE:TFX)’s planned separation into two independent publicly traded companies. The new entity (“NewCo”) will house the Urology, Acute Care, and OEM businesses, while the remaining company (“RemainCo”) will focus on vascular access, interventional, and surgical segments. This split, expected to be completed in 2026 and structured as tax-free for U.S. shareholders, aims to optimize operational focus, streamline manufacturing, and accelerate growth.
The corporation is also expanding its vascular intervention portfolio through the planned €760 million acquisition of Biotronik’s vascular intervention business, set to close by Q3 2025. This deal is expected to strengthen its interventional care offerings and support revenue growth. The company reported strong Q2 2025 results, with revenues up 4.2% to $780.9 million and EPS of $3.73, alongside a net profit margin of 6.31%, underlining operational strength ahead of the planned split.
Innovation remains a key driver, highlighted by the launch of Barrigel Rectal Spacer in Japan, designed to reduce long-term side effects of radiation therapy for prostate cancer. This reflects Teleflex Incorporated (NYSE:TFX)’s focus on specialized, minimally invasive technologies that enhance patient quality of life.
While we acknowledge the potential of TFX 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 TFX and that has 100x upside potential, check out our report about this cheapest AI stock.
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