5 Best Healthcare Penny Stocks to Buy According to Hedge Funds

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1. CytomX Therapeutics, Inc. (NASDAQ:CTMX)

Stock Upside Potential: 221.78%

Number of Hedge Fund Holders: 33

CytomX Therapeutics (NASDAQ:CTMX) is one of the best healthcare penny stocks to buy according to hedge funds. On March 24, analysts at Jefferies reiterated their Buy rating on CytomX Therapeutics (NASDAQ:CTMX) and set a $16 price target. The research firm remains bullish on the company following topline results from its candidate drug, Varseta-M.

Varseta-M is a first-in-class antibody-drug conjugate targeting the epithelial cell adhesion molecule in colorectal cancer. Trials’ results for the candidate drug showed no EpCAM-class toxicities in an expanded dataset of approximately 80 patients. Nevertheless, management confirmed they are working to address the diarrhea adverse event migration and dose fine-tuning.

CytomX Therapeutics has already conducted a $250 million public offering as it seeks to secure the much-needed capital to accelerate the development of its candidate drugs. On the other hand, Jefferies has identified incremental efficacy and durability updates for the candidate drug to bolster the stock’s market sentiment.

CytomX Therapeutics, Inc. (NASDAQ:CTMX) is a clinical-stage biopharmaceutical company developing “masked” antibody therapeutics, known as PROBODY platforms, designed to activate specifically within tumor microenvironments. This approach targets cancer while minimizing damage to healthy tissue, focusing on antibody-drug conjugates (ADCs) and T-cell engagers to treat advanced cancers.

 

While we acknowledge the potential of CTMX 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 CTMX and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 7 Penny Stocks That Aren’t Scams: Best Cheap Stocks to Buy and 8 Best Small-Cap Value Stocks to Buy According to Analysts.

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