In this article, we will look at the 13 Cheap Healthcare Stocks with Huge Upside Potential.
On July 8, Kate Moore, Citi Wealth CIO, appeared on CNBC’s ‘Squawk Box’ to talk about the recent rally in equities. She stated that the rally made her uncomfortable, in part because a lot of it hasn’t been driven by fundamentals. Against the backdrop of this rally, Moore said that there has been a decline in terms of earnings expectations, with a continual lowering of estimates for the year. The key thing that she is focused on in these circumstances is that the uncertainty factor has not faded yet.
According to her, investors and experts do not have a sense of what the next six months look like. Therefore, they are riding high on a lot of hopes and expectations that the Trump administration would continue backing off some of the most punitive measures, particularly those around tariffs. She also stated that this alone is not a good investment strategy, as it is necessary to stay focused on the high-quality, consistent earners.
With these trends in view, let’s look at the 13 cheap healthcare stocks with huge upside potential that you can add to your portfolio.
Stock market data on a laptop screen. Photo by Alesia Kozik on Pexels
Our Methodology
We used Finviz to make a list of the best healthcare stocks with a forward P/E below 15 and selected the top 13 with the highest analyst upside potential. We also added the number of hedge fund holders for each stock as of Q1 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of analyst upside potential.
Note: All data was recorded on July 7.
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).
13 Cheap Healthcare Stocks with Huge Upside Potential
13. Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL)
Analyst Upside: 22.08%
Forward P/E: 8.39
Number of Hedge Fund Holders: 10
Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) is one of the 13 Cheap Healthcare Stocks with Huge Upside Potential. On June 3, H.C. Wainwright analyst Joseph Pantginis reiterated a Buy rating on Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) and set a price target of $57.00. The optimistic rating was based on the company’s prospects, including promising results from the ARROW trial for GAVRETO.
The trial demonstrated safety and strong efficacy for the treatment of RET fusion-positive NSCLC and other solid tumors. It also exhibited a significant median duration of response and a high overall response rate, pointing towards the drug’s meaningful and durable outcomes.
The analyst further reasoned that the trial data shows GAVRETO’s optimistic anti-tumor activity across a number of RET fusion-positive solid tumors, which shows its market potential and paints an optimistic picture for Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL).
Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) is a clinical-stage biotechnology company that discovers and develops targeted, novel drugs in oncology, immunology, and immune oncology. Its product portfolio includes Tavalisse, Fostamatinib, and R835.
12. Biogen Inc. (NASDAQ:BIIB)
Analyst Upside: 26.80%
Forward P/E: 8.96
Number of Hedge Fund Holders: 52
Biogen Inc. (NASDAQ:BIIB) is one of the 13 Cheap Healthcare Stocks with Huge Upside Potential. In a report released on July 7, Brian Abrahams from RBC Capital maintained a Buy rating on Biogen Inc. (NASDAQ:BIIB) with a price target of $208.00.
The company reported a 6% year-over-year growth in total revenue to $2.4 billion, while GAAP diluted EPS for the quarter reached $1.64. Product revenue also rose 3% year-over-year at constant currency and 1% year-over-year at actual currency.
Management is optimistic due to the transformation in the company’s portfolio, with approximately 45% of the total product revenue in the quarter coming from significant medicines outside Biogen Inc.’s (NASDAQ:BIIB) MS business.
Biogen Inc. (NASDAQ:BIIB) is a global biopharmaceutical company that discovers, develops, and delivers advanced therapies for serious diseases worldwide. Its medicine portfolio treats multiple sclerosis (MS), spinal muscular atrophy (SMA), Alzheimer’s disease, and amyotrophic lateral sclerosis (ALS).
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