5 Best Healthcare Stocks to Buy Under $20

In this article, we will be taking a look at the 5 best healthcare stocks to buy under $20. To read our detailed analysis of the healthcare sector, you can go directly to see the 10 Best Healthcare Stocks to Buy Under $20.

5. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)

Number of Hedge Fund Holders: 33

Share Price: $17.2

ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is a biotechnology company. It offers medicines for central nervous system disorders and rare diseases.

An Overweight rating and $37 price target were maintained on ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) on April 10 by Cantor Fitzgerald analysts.

We saw 33 hedge funds long ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) in the fourth quarter, with a total stake value of $1.9 billion.

4. Iovance Biotherapeutics, Inc. (NASDAQ:IOVA)

Number of Hedge Fund Holders: 34

Share Price: $12.3

Piper Sandler analysts hold an Overweight rating and $19 price target on Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) as of March 14.

Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is a biotech company based in San Carlos, California. It develops cell therapies using autologous tumor infiltrating lymphocytes to treat metastatic melanoma and other solid tumor cancers.

In total, 34 hedge funds were long Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) in the fourth quarter, with a total stake value of $554.9 million.

Aristotle Atlantic Partners, LLC made the following comments about Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) in its third quarter 2023 investor letter:

“We sold Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) following uncertainty which arose from the company canceling out of two investor events. Iovance is in the late stages of FDA review on their lead candidate Lifileucel in advanced melanoma. These cancellations could stem from issues with site inspections which tend to take place later in the review cycle. The company has not commented on why it canceled these investor events, and we do not think this bodes well for the prospects of a straightforward approval with a clean, positive label for the company.”

3. Elanco Animal Health Incorporated (NYSE:ELAN)

Number of Hedge Fund Holders: 35

Share Price: $14.3

Elanco Animal Health Incorporated (NYSE:ELAN) was seen in the portfolios of 35 hedge funds in the fourth quarter, with a total stake value of $844.4 million.

Based in Greenfield, Indiana, Elanco Animal Health Incorporated (NYSE:ELAN) is an animal health company. It offers pet health and disease prevention products such as parasiticides and vaccines.

As of February 27, Morgan Stanley analysts hold an Overweight rating and a $17 price target on Elanco Animal Health Incorporated (NYSE:ELAN).

2. Viatris Inc. (NASDAQ:VTRS)

Number of Hedge Fund Holders: 43

Share Price: $11.5

Viatris Inc. (NASDAQ:VTRS) is a pharmaceutical company. It offers prescription brand drugs, generic drugs, complex generic drugs, biosimilars, and active pharmaceutical ingredients.

A total of 43 hedge funds were long Viatris Inc. (NASDAQ:VTRS) in the fourth quarter, with a total stake value of $1.2 billion.

Piper Sandler analysts maintain a Neutral rating and $13 price target on Viatris Inc. (NASDAQ:VTRS) as of March 28.

Greenlight Capital said the following about Viatris Inc. (NASDAQ:VTRS) in its fourth-quarter 2023 investor letter:

We established medium-sized positions in Alight (ALIT) and Viatris Inc. (NASDAQ:VTRS), and a small position in Syensqo (Belgium: SYENS). VTRS is a manufacturer of generic and off-patent branded drugs. The company was created in 2020 after a merger between Mylan and a division of Pfizer. We previously invested in Mylan, but sold five years ago due to concerns around management’s ability to deliver on promises, as well as deterioration in the generic industry. Those concerns were well-founded, as the shares proceeded to decline by more than 60% after we exited. After a recent management change, we decided to take another look and found that after years of sharp declines, generic drug pricing has stabilized and competition has been diminished. The company’s revenue and cash flow are now growing, and we expect this improvement to accelerate. VTRS’ new management team has simplified its drug portfolio via various divestitures and has committed to returning 50% of free cash flow to shareholders through “aggressive” share buybacks, implying a double-digit capital return based on our estimates. We acquired our shares at an average price of $10.63, or just 4.0x 2024 consensus earnings. VTRS shares ended the quarter at $10.83.”

1. Teva Pharmaceutical Industries Limited (NYSE:TEVA)

Number of Hedge Fund Holders: 50

Share Price: $13.3

On February 12, Piper Sandler analysts placed an Overweight rating and $19 price target on Teva Pharmaceutical Industries Limited (NYSE:TEVA).

Teva Pharmaceutical Industries Limited (NYSE:TEVA) had 50 hedge funds long its stock in the fourth quarter, with a total stake value of $1.5 billion.

Based in Tel Aviv, Israel, Teva Pharmaceutical Industries Limited (NYSE:TEVA) is a pharmaceutical company. It offers generic medicines, specialty medicines, and biopharmaceutical products.

Sound Shore Management mentioned Teva Pharmaceutical Industries Limited (NYSE:TEVA) in its third-quarter 2023 investor letter:

“Away from power, drug maker Teva Pharmaceutical Industries Limited (NYSE:TEVA), a new holding, also performed well during the quarter. Teva develops, manufactures and markets generic and specialty drugs focused on neurological and respiratory diseases, as well as oncology. Following a period of poor capital allocation decisions in prior years, we were able to invest at a very attractive valuation. We now believe management has positioned the company for renewed growth, driven by its most promising branded drug pipeline in years. The investment is off to a good start and the stock gained after second quarter results topped consensus.”

See also Insiders Are Dumping These 10 Healthcare Stocks and 11 Best Healthcare ETFs To Buy Now.