In this article, we will be taking a look at the 13 Most Oversold Healthcare Stocks So Far in 2025.
The healthcare innovation landscape in 2025 is navigating a complex mix of challenges and opportunities, marked by contrasting trends in fundraising, investment, and technology adoption. In the first half of the year, U.S. healthcare venture capital (VC) fundraising totaled approximately $3 billion, representing a sharp decline and potentially the weakest year for healthcare fundraising in over a decade. This slowdown reflects macroeconomic pressures such as high interest rates, inflation concerns, geopolitical tensions, and policy uncertainties that impact funding and operations. Despite these headwinds, private healthcare markets remain resilient, with notable activity in biopharma mergers, acquisitions, and strategic licensing deals.
Artificial intelligence (AI) has emerged as a bright spot within the sector. Healthtech AI deal volume has nearly doubled since 2022, becoming a key driver of innovation funding. Digital health startups raised $6.4 billion in VC funding in the first half of 2025, up from $6 billion in the same period in 2024, fueled by investor interest in AI solutions that improve clinical decision support, imaging, and operational efficiency. Additionally, China has significantly increased its role in biopharma licensing, spending $3 billion on deals in H1 2025 alone, surpassing total 2024 spending, yet U.S. biopharma investment remains robust.
However, the broader healthcare sector faces substantial pressure. Mizuho healthcare strategist Jared Holz highlighted on CNBC’s “The Exchange” that the industry is under unprecedented strain, with large-cap pharmaceuticals and managed care bearing the brunt. He noted that healthcare has rarely outperformed the market in the past decade except during market downturns and described current conditions as the worst the sector has experienced in decades.
Despite these challenges, strategic acquisitions, early-stage investments, and a potential revival in IPO activity suggest the industry remains primed for innovation. AI-driven solutions are increasingly addressing longstanding inefficiencies, positioning healthcare for growth and transformation even amid funding headwinds. The sector stands at a pivotal crossroads, balancing economic pressures with technology-driven opportunities that could shape its future trajectory.
With these trends in mind, let’s now take a look at the most oversold healthcare stocks in 2025.
Our Methodology
For our methodology, we first used Stock Analysis’s stock screener to filter for companies with a market capitalization above $2 billion and a Relative Strength Index (RSI) below 40. From this filtered list, we identified the stocks with the lowest RSI values and ranked them in descending order to select the top stocks.
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 13 most oversold healthcare stocks so far in 2025.
13. Perrigo Company plc (NYSE:PRGO)
Relative Strength Index (RSI): 35.21
Perrigo Company plc (NYSE:PRGO), a global leader in consumer self-care products, is sharpening its focus on high-growth, high-margin categories across North America and Europe, and it stands thirteenth on our list among the most oversold stocks. Its portfolio spans pain and sleep aids, nutrition, digestive health, and oral care, with recent gains in OTC store brands signaling competitive strength despite challenging market conditions.
In Q2 2025, Perrigo Company plc (NYSE:PRGO) reported net sales of $1.06 billion, a 0.9% decline year-over-year, influenced by divestitures and exited products, particularly in infant formula and digestive health. The corporation continues to navigate soft seasonal demand in allergy, sun care, and blister care categories, as well as slower-than-expected recovery in infant formula.
Under its “Three-S” strategy—Stabilize, Streamline, and Strengthen- the firm is divesting non-core assets, including the Dermacosmetics business, expected to close in Q1 2026. This move aims to streamline operations, reinforce the balance sheet, accelerate debt reduction, and enable greater focus on its core self-care portfolio.
Operational enhancements, including a global operating model upgrade and strengthened brand-building capabilities, are already contributing to market share gains in key segments. Perrigo Company plc (NYSE:PRGO) is emphasizing innovation and expansion in pain and sleep aids, nutrition, and upper respiratory products, aligning resources with higher-growth categories.
12. AptarGroup, Inc. (NYSE:ATR)
Relative Strength Index (RSI): 35.12
AptarGroup, Inc. (NYSE:ATR), a global leader in drug delivery and consumer product dosing technologies, highlighted its growth strategy and long-term outlook during its Investor Day on September 9, 2025. Executive presentations emphasized strong momentum in the Pharma segment, driven by rising demand for innovative biologics, injectables, and patient-friendly drug delivery solutions.
In Q2 2025, AptarGroup, Inc. (NYSE:ATR) reported a 6% increase in revenue compared to the prior year, with net income rising 24% to $112 million and adjusted EBITDA up 13%. Earnings per share grew 25%, reflecting operational efficiencies and strong demand across the Pharma and Closures segments.
The company signaled confidence in its sustained performance by announcing a nearly 7% increase in its quarterly dividend to $0.48 per share, marking 32 consecutive years of dividend growth. AptarGroup, Inc. (NYSE:ATR) also returned $100 million to shareholders in dividends and share repurchases during the second quarter, totaling $210 million for the first half of the year, demonstrating a shareholder-friendly capital allocation approach.
11. Danaher Corporation (NYSE:DHR)
Relative Strength Index (RSI): 34.98
Danaher Corporation (NYSE:DHR), a global leader in life sciences and diagnostics, continues to advance its bioprocessing, diagnostics, and life sciences segments through innovation and strategic partnerships. In Q2 2025, the company marked its eighth consecutive quarter of increased orders in bioprocessing, driven by strong demand for consumables from major pharmaceutical clients. The biotechnology segment saw a 6% year-over-year revenue rise, supported by growing monoclonal antibody demand, while molecular diagnostics contributed to a 2% core revenue increase, led by Beckman Coulter Diagnostics.
Strategic acquisitions have further strengthened Danaher Corporation (NYSE:DHR)’s portfolio. The December 2023 acquisition of Abcam, known for its antibody products, added to Life Sciences segment revenue, reflecting the business’s focus on innovation and diversification. Additionally, the firm is advancing precision medicine through a partnership with AstraZeneca to develop next-generation AI-powered diagnostics, aiming to scale precision healthcare and streamline diagnostic development. As one of the most oversold stocks in the sector, DHR continues to attract attention for its resilience and strategic growth moves.
Danaher Corporation (NYSE:DHR) maintains a shareholder-friendly approach, raising its quarterly dividend by 18.5% to 32 cents per share in early 2025, signaling confidence amid mixed market demand in academic, government, and energy filtration sectors.
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