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.
