In this article, we will be taking a look at the 5 most undervalued healthcare stocks to buy now. If you wish to see the full list and how we came up with these stocks, visit 9 Most Undervalued Healthcare Stocks to Buy Now.
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5. Inspire Medical Systems, Inc. (NYSE:INSP)
PE Ratio: 10.64
Inspire Medical Systems, Inc. (NYSE:INSP) is among the most undervalued stocks to invest in.
TheFly reported on April 15 that Truist Financial reduced its price target for INSP from $70 to $64 while maintaining a Hold stance on the stock. The adjustment was made within a broader outlook on MedTech ahead of first-quarter results, with expectations that performance may meet or slightly exceed cautious investor sentiment around procedure volumes. However, the firm noted that the current valuation discount versus peers appears warranted due to near-term growth uncertainty, particularly linked to slowing domestic expansion and ongoing reimbursement-related challenges.
Similarly, a day earlier on April 14, Royal Bank of Canada revised its outlook on Inspire Medical Systems, Inc. (NYSE:INSP) and lowered its price target from $68 to $56 while maintaining a Sector Perform rating. This update also came as part of a broader MedTech sector review ahead of first-quarter earnings. Despite acknowledging stable underlying demand conditions and generally solid fundamentals with no signs of major market disruption, the firm highlighted that recent sentiment-driven weakness may be overstated. At the same time, it pointed to operational pressures affecting utilization and new center growth, including reimbursement coding challenges and delayed patient progression related to GLP-1 therapy trends, which limit near-term visibility across upcoming quarters.
In separate news, Inspire Medical Systems, Inc. (NYSE:INSP) will report its Q1 2026 results on May 4.
Inspire Medical Systems, Inc. (NYSE:INSP) is a medical technology company based in Minneapolis that develops implantable neurostimulation therapy for obstructive sleep apnea. It’s an FDA-approved device that stimulates the hypoglossal nerve as an alternative to CPAP treatment.
4. MiMedx Group, Inc. (NASDAQ:MDXG)
PE Ratio: 10.00
MiMedx Group, Inc. (NASDAQ:MDXG) is among the most undervalued stocks.
TheFly reported on April 20 that Citizens Financial Group lowered its price target on MDXG from $10 to $7 while maintaining an Outperform rating. The update noted that the company is pursuing significant expense reductions expected to cut annual operating costs by roughly $40 million. However, near-term performance remains under pressure due to slow recovery trends and ongoing reimbursement-related challenges in the wound care market, which continue to weigh on revenue growth. Despite these headwinds, the firm maintained a positive longer-term view, citing MDXG’s strong clinical evidence base, established operational network, and adaptability across evolving care environments.
Earlier on April 16, MiMedx Group, Inc. (NASDAQ:MDXG) announced a restructuring program aimed at lowering operating costs and focusing resources on growth priorities. The initiative is designed to streamline operations and improve efficiency across the business. As part of the changes, the company eliminated the Chief Operating Officer role, previously held by Ricci Whitlow.
The corporation’s Management indicated that further details regarding the restructuring and its financial impact would be shared alongside the first-quarter 2026 earnings discussion during the upcoming conference call later in April, where overall operating performance will also be addressed.
MiMedx Group, Inc. (NASDAQ:MDXG) is a regenerative medicine company specializing in placental biologics. It develops and markets human tissue-based products used for advanced wound care and surgical healing applications.
3. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)
PE Ratio: 9.60
ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is one of the most undervalued healthcare stocks to buy now.
TheFly reported on April 7 that RBC Capital Markets revised its outlook on ACAD, lowering its price target from $30 to $29 while keeping an Outperform rating. The adjustment was included in a broader Biotech sector preview ahead of first-quarter results. The firm noted that seasonal pressures such as reimbursement adjustments, fewer operating days, and adverse weather conditions could weigh on near-term performance, particularly for newly launched and clinic-dependent products. However, it also highlighted that renewed merger and acquisition activity and greater clarity on limited impacts from pricing policy changes may help balance short-term volatility and support a constructive sector outlook.
On the same day, ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) announced the U.S. launch of Daybue Stix, an oral formulation of trofinetide now widely accessible for treating Rett syndrome in both adults and children aged two years and older.
The newly introduced version, previously cleared by the U.S. Food and Drug Administration in December 2025, delivers the same therapeutic effectiveness and safety profile as the original oral solution. It is designed to be bioequivalent while offering improved patient convenience through greater flexibility in dosing volume and taste options, supporting easier administration for individuals living with Rett syndrome.
ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is a biopharmaceutical company based in San Diego focused on CNS disorders and rare diseases. It is known for developing NUPLAZID for Parkinson’s disease psychosis and DAYBUE for Rett syndrome.
2. Galapagos NV (NASDAQ:GLPG)
PE Ratio: 5.06
Galapagos NV (NASDAQ:GLPG) is among the most undervalued stocks to invest in.
TheFly reported on April 7 that RBC Capital Markets adjusted its outlook on GLPG, reducing its price target from $33 to $28 while maintaining a Sector Perform rating. The update was included in a broader Biotech sector preview ahead of first-quarter earnings.
The firm cited expected seasonal pressures such as reimbursement resets, gross-to-net dynamics, and fewer selling days, which could be further affected by weather-related disruptions in early-stage and clinic-based product activity. At the same time, it noted that improving merger and acquisition activity and clearer expectations around drug pricing policy impacts may help offset near-term volatility and support a more stable sector environment.
Additionally, earlier on March 31, Galapagos NV (NASDAQ:GLPG) and Gilead Sciences entered a binding framework related to Gilead’s acquisition of Ouro Medicines, a private biotech focused on T-cell engager therapies for autoimmune conditions. The agreement outlines expanded collaboration rights, including access to select Ouro programs such as gamgertamig, alongside provisions for shared development responsibilities, milestone-based payments, and future royalty structures.
It also includes arrangements for operational asset transfer and funding flexibility for GLPG, allowing independent capital deployment and potential share repurchases, while establishing joint participation in advancing autoimmune-focused research and clinical development programs.
Galapagos NV (NASDAQ:GLPG) is a Belgium-based biotechnology company focused on developing innovative treatments in immunology and oncology. It works on small molecules and CAR-T cell therapies using a decentralized manufacturing approach.
1. Novavax, Inc. (NASDAQ:NVAX)
PE Ratio: 3.29
Novavax, Inc. (NASDAQ:NVAX) tops our list of the most undervalued stocks.
TheFly reported on April 9 that B. Riley Financial increased its price target on NVAX from $16 to $18 while maintaining a Buy rating. The update reflected expectations that ongoing shareholder activism focused on governance and cost structure could lead to changes in board composition and additional improvements to the company’s balance sheet.
Separately, on April 18, Sanofi and Novavax, Inc. (NASDAQ:NVAX) reported results from the COMPARE Phase 4 clinical trial, the first direct head-to-head study assessing tolerability between protein-based Nuvaxovid and an mRNA COVID-19 vaccine, mNEXSPIKE developed by Moderna. The randomized, double-blind study demonstrated that Nuvaxovid produced significantly lower systemic reactogenicity across all key measured outcomes, indicating fewer expected post-vaccination side effects compared with the comparator vaccine.
Findings were presented at a major infectious disease conference in Munich, Germany. The results reinforce the established safety and tolerability profile of Nuvaxovid and are intended to support broader confidence in the vaccine. They also align with ongoing commercialization efforts led by Sanofi for the upcoming vaccination season, with the data potentially contributing to improved public acceptance and uptake of protein-based COVID-19 vaccination options.
Novavax, Inc. (NASDAQ:NVAX) is a biotechnology company based in Maryland that develops vaccines for infectious diseases. It uses recombinant protein nanoparticle technology and its Matrix-M adjuvant to enhance immune response.
While we acknowledge the potential of NVAX 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 NVAX and that has 100x upside potential, check out our report about the cheapest AI stock.
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