5 Best Depressed Stocks To Invest In

4. Horizon Therapeutics plc. (NASDAQ:HZNP)

Number of Hedge Fund Holdings: 56

Share Price (as of August 15): $64.90

YTD Declines (as of August 15): 39.48%

Horizon Therapeutics plc. (NASDAQ:HZNP) is a biopharmaceutical company which primarily focuses on the research, development, and commercialization of medicines which address critical needs for people impacted by rare and rheumatic diseases. Horizon’s (NASDAQ:HZNP) drug portfolio includes notable medications like Tepezza, Duexis and Buphenyl. As of August 11, the company posted a PE ratio of 21.93. Hedge fund sentiment around the stock has slightly fallen in the first quarter of 2022, with only 56 hedge funds long the stock, compared to 58 a quarter ago.

The company posted an annual revenue of $876.4 million in the second quarter of 2022. Horizon (NASDAQ:HZNP) did not meet earnings-per-share estimates in Q2 2022, with the biopharmaceutical company reporting an EPS of $1.07, trailing behind estimates of $1.34 by $0.27.

Horizon Therapeutics plc. (NASDAQ:HZNP) has an overall analyst rating of Strong Buy. With analysts largely agreeing that the current dip in Horizon’s (NASDAQ:HZNP) share price is transitory, it is the ideal time for investors to capitalize on this attractive entry point. The company is forecasting $4 billion in revenue in FY22, driven exclusively by the explosive growth of Tepezza. Furthermore, the company has 2 more potential blockbusters in Uplizna and Krystexxa, and its $3 billion acquisition of Viela Bio equips Horizon (NASDAQ:HZNP) with a pipeline that could generate $1 – $3 billion in peak revenues. And although Horizon’s (NASDAQ:HZNP) share price growth of 350% over the past 2 years is unlikely to repeat itself, forecasts suggest there is a 30% to 45% upside opportunity. Analysts have cited Horizon’s (NASDAQ:HZNP) resurgence to a three-fold approach namely; commercial execution, proven and disciplined business development strategy, and strong clinical development capability.

On August 3, Stifel analyst Annabel Samimy lowered the firm’s price target on Horizon (NASDAQ:HZNP) to $138 from $140, maintaining a Buy rating on the stock. In a research note, the analyst claims that while the Q2 results were disappointing, issues could largely be attributed to logistics rather than demand. Samimy maintains that while there is a need to navigate through the Tepezza miss challenge, Horizon (NASDAQ:HZNP) still remains one of the best positioned stocks for growth and longevity in biopharma.