In this article, we will take a look at the 5 oversold healthcare stocks to buy. To read our analysis of the recent trends and market activity, you can go to the 10 Oversold Healthcare Stocks to Buy.
5. NovoCure Limited (NASDAQ:NVCR)
14-day RSI as of August 4: 19.97
Number of Hedge Fund Holders: 19
Root, Switzerland-based NovoCure Limited (NASDAQ:NVCR) is a global oncology company working to extend survival in some of the most aggressive forms of cancer through the development and commercialization of our innovative therapy, Tumor Treating Fields.
The portfolio of NovoCure Limited (NASDAQ:NVCR) includes products approved in certain countries for the treatment of adult patients with glioblastoma, malignant pleural mesothelioma, and pleural mesothelioma. Its clinical trials pipeline includes Tumor Treating Fields in brain metastases, gastric cancer, glioblastoma, liver cancer, non-small cell lung cancer, pancreatic cancer, and ovarian cancer.
On July 27, NovoCure Limited (NASDAQ:NVCR) released its financial results for Q2 2023. It generated a revenue of $126 million and a net loss of $57 million. During the quarter, phase 3 LUNAR trial in non-small cell lung cancer met primary and key secondary survival endpoints, and the interim analysis for its phase 3 PANOVA-3 trial in pancreatic cancer concluded with recommendation to proceed to final analysis.
4. Cerevel Therapeutics Holdings, Inc. (NASDAQ:CERE)
14-day RSI as of August 4: 18.39
Number of Hedge Fund Holders: 17
Cerevel Therapeutics Holdings, Inc. (NASDAQ:CERE) is a biopharmaceutical company focused on developing new therapies to treat disorders of the central nervous system. Its pipeline includes five clinical-stage investigational therapies and several preclinical compounds with the potential to treat neuroscience diseases, including schizophrenia, Alzheimer’s disease psychosis, epilepsy, panic disorder, and Parkinson’s disease.
The lead program of Cerevel Therapeutics Holdings, Inc. (NASDAQ:CERE) is Emraclidine, an M4-selective positive allosteric modulator (PAM) in development for schizophrenia and Alzheimer’s disease psychosis. The FDA has granted a fast track designation for Emraclidine for the treatment of hallucinations and delusions associated with Alzheimer’s disease psychosis.
As of Q1 2023, Cerevel Therapeutics Holdings, Inc. (NASDAQ:CERE) shares were held by 17 hedge funds with the total shares held by these hedge funds valued at $321 million. Joseph Edelman’s Perceptive Advisors was its largest hedge fund shareholder with ownership of 6.5 million shares valued at $159 million.
3. ResMed Inc. (NYSE:RMD)
14-day RSI as of August 4: 17.59
Number of Hedge Fund Holders: 32
Founded in 1989, San Diego, California-based ResMed Inc. (NYSE:RMD) is a medical equipment company that provides cloud-connected medical devices for people with sleep apnea, Chronic obstructive pulmonary disease (COPD), and other chronic diseases.
On August 3, ResMed Inc. (NYSE:RMD) released its financial results for the quarter ended June 30, 2023. Its revenue increased by 23% y-o-y to $1.1 billion, while net income increased by 18% y-o-y to $230 million. At $1.60, the normalized EPS for the quarter missed consensus estimates by $0.09.
The Board of Directors of ResMed Inc. (NYSE:RMD) declared a quarterly cash dividend of $0.48 per share which represents a 9% increase on the previous dividend amount. The dividend payout reflects a dividend yield of 1.07% based on the share price on August 4.
2. Penumbra, Inc. (NYSE:PEN)
14-day RSI as of August 4: 15.99
Number of Hedge Fund Holders: 19
Alameda, California-based Penumbra, Inc. (NYSE:PEN) is a global healthcare company that designs, develops, manufactures, and markets novel products that address challenging medical conditions in markets with significant unmet need.
On August 1, Penumbra, Inc. (NYSE:PEN) released its financial results for Q2 2023. Its revenue increased by 26% y-o-y to $261 million while it reported a net income of $19 million, compared to a net loss of $4 million.
Following the earnings release, Wells Fargo analyst Larry Biegelsen raised the price target on Penumbra, Inc. (NYSE:PEN) shares to $337 from $320 and maintained an ‘Overweight’ rating on the shares. The target price represents a potential upside of 33.54% based on the share price on August 4.
1. Apellis Pharmaceuticals, Inc. (NASDAQ:APLS)
14-day RSI as of August 4: 13.42
Number of Hedge Fund Holders: 42
Waltham, Massachusetts-based Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) is a biopharmaceutical company focused on the development of therapies for treatment of debilitating diseases by controlling complement, part of the body’s immune system. The company is exploring programs across ophthalmology, nephrology, hematology, and neurology by targeting the C3, the only target in the complement cascade that addresses all three pathways that can drive disease.
Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) received FDA approval of SYFOVRE™ (pegcetacoplan injection) in February 2023 for the treatment of geographic atrophy. EMPAVELI, for the treatment of Paroxysmal Nocturnal Hemoglobinuria, is the other commercial product of the company.
Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) ranks #1 on our list of 10 oversold healthcare stocks to buy based on the 14-day RSI of 13.42. The shares of the company were also widely owned by hedge funds, as of Q1 2023, with 42 of the 943 prominent hedge funds tracked by Insider Monkey holding its shares valued at $2.0 billion.
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