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).
11. Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH)
Analyst Upside: 31.23%
Forward P/E: 7.43
Number of Hedge Fund Holders: 22
Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) is one of the 13 Cheap Healthcare Stocks with Huge Upside Potential. On May 12, JPMorgan downgraded Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) to Neutral from Overweight, while also reducing the price target to $30 from $45.
The analyst told investors in a research note that the company has continually experienced setbacks on the pipeline front, which has contributed to the rating downgrade.
The firm also stated that while Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) has a better-positioned generic business when compared with some of its peers, both epinephrine and glucagon are deteriorating faster than expected by the Street.
Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) develops, manufactures, markets, and sells technically challenging generic and proprietary injectable, intranasal, inhalation, and insulin active pharmaceutical ingredients. The company’s operations are divided into the Finished Pharmaceutical Products and Active Pharmaceutical Ingredients Products segments.
10. Elevance Health, Inc. (NYSE:ELV)
Analyst Upside: 39.67%
Forward P/E: 10.09
Number of Hedge Fund Holders: 75
Elevance Health, Inc. (NYSE:ELV) is one of the 13 Cheap Healthcare Stocks with Huge Upside Potential. On June 19, Bernstein analyst Lance Wilkes maintained a Buy rating on Elevance Health, Inc. (NYSE:ELV) with a price target of $585.00.
The company reported a 15.4% increase in operating revenue for fiscal Q1 2025 compared to the same period last year, reaching $48.8 billion. Adjusted operating gain for the quarter reached $3.3 billion, up 4.1% from Q1 2024.
Elevance Health, Inc. (NYSE:ELV) reaffirmed its fiscal year 2025 adjusted diluted EPS range, expecting it to be between $34.15 and $34.85. It also returned $1.3 billion of capital to shareholders in the quarter.
Elevance Health, Inc. (NYSE:ELV) offers telehealth services to its customers, reporting in 2024 that the company conducted more than 800,000 virtual visits in 2023. This health company operates through the following segments: Health Benefits, CarelonRx, Carelon Services, and Corporate and Other.
The Health Benefits segment offers a range of health plans and services, while the CarelonRx segment manages pharmacy services. The Carelon Services segment offers various healthcare-related services by integrating behavioral, physical, pharmacy, and social services.
9. Molina Healthcare, Inc. (NYSE:MOH)
Analyst Upside: 44.45%
Forward P/E: 9.79
Number of Hedge Fund Holders: 38
Molina Healthcare, Inc. (NYSE:MOH) is one of the 13 Cheap Healthcare Stocks with Huge Upside Potential. On July 7, JP Morgan analyst John Stansel maintained a neutral stance on Molina Healthcare, Inc. (NYSE:MOH), giving it a Hold rating while bringing the price target down to $333 from $350. The analyst based the rating on the company’s outlook and recent financial performance.
Stansel acknowledged that the company reported a preliminary fiscal Q2 adjusted EPS that was lower than expected lower than expected, primarily due to a rise in medical cost pressures across all business segments. This resulted in a drop in Molina Healthcare, Inc.’s (NYSE:MOH) 2025 EPS guidance, suggesting ongoing financial challenges.
The analyst further supported the cautious outlook on Molina Healthcare, Inc. (NYSE:MOH) with the company’s exposure to the ACA exchanges and Medicaid, both of which are undergoing cost pressure.
However, Stansel also stated that while the company’s management expects these pressures to continue into the second half of 2025, Molina Healthcare, Inc. (NYSE:MOH) maintains a stable long-term outlook.
Molina Healthcare, Inc. (NYSE:MOH) provides healthcare services. Headquartered in Long Beach, CA, the company’s operations are divided into the following segments: Medicaid, Medicare, Marketplace, and Other.
8. Genmab A/S (NASDAQ:GMAB)
Analyst Upside: 49.39%
Forward P/E: 14.18
Number of Hedge Fund Holders: 20
Genmab A/S (NASDAQ:GMAB) is one of the 13 Cheap Healthcare Stocks with Huge Upside Potential. On June 25, UBS analyst Xian Deng maintained a Buy rating on Genmab A/S (NASDAQ:GMAB) and set a price target of DKK2,500.00.
The company reported $715 million in revenue for the first three months of 2025 compared to $603 million in the same period last year. This translates to a growth of 19% or $112 million, which the company attributed to increased DARZALEX and Kesimpta royalties attained under its collaborations with Johnson & Johnson and Novartis Pharma AG, respectively. EPKINLY net product sales also contributed to this growth.
Royalty revenue for the quarter also rose to $589 million, experiencing an increase of $137 million, or 30%. This growth was driven by an increase in net sales of DARZALEX and Kesimpta.
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.
7. Novavax Inc. (NASDAQ:NVAX)
Analyst Upside: 51.29%
Forward P/E: 3.37
Number of Hedge Fund Holders: 26
Novavax Inc. (NASDAQ:NVAX) is one of the 13 Cheap Healthcare Stocks with Huge Upside Potential. On June 17, Citi initiated coverage of Novavax Inc. (NASDAQ:NVAX) with a Sell rating and a $6 price target.
The firm acknowledged that vaccines are a “key cornerstone” to global health, and that Novavax Inc. (NASDAQ:NVAX) could contribute to the development of new and innovative vaccines through its innovative technologies.
However, the analyst also told investors in a research note that establishing a clear path to success for Novavax Inc. (NASDAQ:NVAX) is proving challenging due to several factors.
These include the company’s “overwhelming concentration” in respiratory vaccines, an area that is continually undergoing decline in vaccination rates with several entrenched players. In addition, healthcare policies are “in flux” and generally “not encouraging” towards vaccines, further supporting the Sell rating.
Novavax Inc. (NASDAQ:NVAX) is a biotechnology company that discovers, develops, and commercializes recombinant vaccines.
6. Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY)
Analyst Upside: 51.99%
Forward P/E: 7.69
Number of Hedge Fund Holders: 27
Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) is one of the 13 Cheap Healthcare Stocks with Huge Upside Potential. On June 30, H.C. Wainwright analyst Patrick Trucchio maintained a Buy rating on Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) and set a price target of $70.00.
The company reported strong fiscal Q1 2025 results, with net revenue for WAKIX (pitolisant) in narcolepsy reaching $184.7 million for the quarter, reflecting a 20% year-over-year growth. It projects 2025 net revenue to be in the range of $820 to $860 million.
Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) also experienced a 19% year-over-year increase in net income, building on four consecutive years of profitability. It increased its cash and investments to more than $600 million on the balance sheet.
Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) is a commercial-stage pharmaceutical company that develops and commercializes therapies to treat neurological disorders. Its product, WAKIX, is a molecule that increases histamine signaling in the brain by binding to H3 receptors. The company has one of the strongest pipelines for people with rare neurological diseases.
5. Organon & Co. (NYSE:OGN)
Analyst Upside: 54.32%
Forward P/E: 2.58
Number of Hedge Fund Holders: 28
Organon & Co. (NYSE:OGN) is one of the 13 Cheap Healthcare Stocks with Huge Upside Potential. On July 2, Organon & Co. (NYSE:OGN) announced that its Phase 2 ELENA proof-of-concept study did not meet its primary efficacy endpoint. The study evaluated the investigational candidate OG-6219 in endometriosis-related pain, with OG-6219 being an oral 17β-hydroxysteroid dehydrogenase type 1 inhibitor.
Organon & Co. (NYSE:OGN) acquired OG-6219 through its 2021 acquisition of Forendo Pharma. The compound did not exhibit improvement in moderate-to-severe endometriosis-related overall pelvic pain in the study as compared to the placebo, which is why Organon & Co. (NYSE:OGN) plans to discontinue the clinical development program.
Juan Camilo Arjona Ferreira, M.D., Head of Research and Development and Chief Medical Officer at Organon & Co. (NYSE: OGN), stated that while the study results were disappointing, the company remains committed to its focus on improving the lives of women with endometriosis.
Organon & Co. (NYSE:OGN) is a global pharmaceutical company that develops and delivers innovative health solutions via a portfolio of prescription therapies within women’s health, established brands, and biosimilars.
4. Ardent Health Partners, Inc. (NYSE:ARDT)
Analyst Upside: 57.89%
Forward P/E: 6.7
Number of Hedge Fund Holders: 13
Ardent Health Partners, Inc. (NYSE:ARDT) is one of the 13 Cheap Healthcare Stocks with Huge Upside Potential. Leerink Partners analyst Whit Mayo reiterated a Buy rating on Ardent Health Partners, Inc. (NYSE:ARDT) on July 5 without a price target.
The rating continued the analyst’s bullish streak on the company, as he gave it a buy rating on June 23 due to strong sector trends and the belief that the company is presently underperforming its potential. The analyst stated that Ardent Health Partners, Inc. (NYSE:ARDT) has a strong outpatient network strategy with potential for growth.
Mayo further reasoned that despite the delay in the anticipated $65 million NM DPP contribution to Q3 2025, the company’s full-year EBITDA remains unaffected, attributing the delay to uncertainty in the timing of CMS approval instead of a lack of confidence in the eventual approval.
Ardent Health Partners, Inc. (NYSE:ARDT) is a provider of healthcare and related services. The company is headquartered in Brentwood, TN, and also owns and operates hospitals through its subsidiaries.
3. Acadia Healthcare Company, Inc. (NASDAQ:ACHC)
Analyst Upside: 71.53%
Forward P/E: 8.91
Number of Hedge Fund Holders: 42
Acadia Healthcare Company, Inc. (NASDAQ:ACHC) is one of the 13 Cheap Healthcare Stocks with Huge Upside Potential. In a report released on June 23, A.J. Rice from UBS reiterated a Buy rating on Acadia Healthcare Company, Inc. (NASDAQ:ACHC) with a price target of $45.00.
The company’s fiscal Q1 2025 results showed a revenue of $770.5 million compared with $768.1 million in fiscal Q1 2024. Same facility revenue for the quarter rose 2.1% compared to Q1 2024, including a 2.2% growth in patient days. In addition, patient day growth and same facility revenue both experienced an unfavorable year-over-year impact of approximately 1.1%.
Acadia Healthcare Company, Inc. (NASDAQ:ACHC) is continuing the execution of its growth strategy, adding around 378 newly licensed beds during fiscal Q1 2025, including 288 beds from newly constructed facilities and 90 beds to existing facilities.
Acadia Healthcare Company, Inc. (NASDAQ:ACHC) provides behavioral healthcare services across the US. It offers services to its patients in a range of settings, including specialty treatment facilities, inpatient psychiatric hospitals, outpatient clinics, and residential treatment centers.
2. Embecta Corp. (NASDAQ:EMBC)
Analyst Upside: 79.46%
Forward P/E: 3.65
Number of Hedge Fund Holders: 29
Embecta Corp. (NASDAQ:EMBC) is one of the 13 Cheap Healthcare Stocks with Huge Upside Potential. On May 23, Mizuho lowered the firm’s price target on Embecta Corp. (NASDAQ:EMBC) to $13 from $15, keeping a Neutral rating on the shares. The rating came after analyst day, with the firm telling investors in a research note that the company’s long-term guidance calls for sales to stay relatively flat through 2028.
Following similar circumstances, Travis Steed from Bank of America Securities maintained a Sell rating on Embecta Corp. (NASDAQ:EMBC) in a report released on May 28, setting a price target of $18.00.
Embecta Corp. (NASDAQ:EMBC) provides medical devices used to treat diabetes. The company’s offerings include syringes, pen needles, and safety devices fitted with a digital application.
1. Centene Corporation (NYSE:CNC)
Analyst Upside: 108.77%
Forward P/E: 5.58
Number of Hedge Fund Holders: 64
Centene Corporation (NYSE:CNC) is one of the 13 Cheap Healthcare Stocks with Huge Upside Potential. On July 2, Cantor Fitzgerald analyst Sarah James lowered the firm’s price target on Centene Corporation (NYSE:CNC) to $65 from $90 while keeping an Overweight rating on the shares.
The analyst told investors in a research note that even when not considering the Health Insurance Exchange risk pool update, the firm saw core Q2 as holding risk for Centene Corporation (NYSE:CNC). It now believes that an even greater pressure exists on Q2 and the year.
Although Cantor Fitzgerald expressed continued likeness towards the company’s core assets, it stated that the near-term trajectory appears less certain and the path to turnaround has hit a number of products.
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.
While we acknowledge the potential of CNC 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 CNC and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
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.
