In this article, we will look at the 8 Most Oversold Healthcare Stocks to Invest In.
On April 17, Matt Powers, Powers Advisory Group managing partner, appeared on CNBC’s ‘Squawk Box’ to discuss what’s driving markets, among other things.
Calling it a textbook classic move, he stated that we had a geopolitical shock and markets sold off hard before snapping right back up, making it the classic V shape. This, according to him, is usually how these things play out. However, the bigger point for him is the speed of recovery. The S&P got back to its highs in about 15 trading days, just after a war headline and a huge spike in oil. We barely touched a correction during all of this, and it tells you that the underlying trend is still pretty strong and that the market is still resilient.
READ ALSO: 8 Most Undervalued Biotech Stocks to Buy Right Now AND 8 Best Low Priced Biotech Stocks to Invest In.
A lot of the macro risk, Powers added, was probably already priced in. Therefore, in the near term, it feels like a bottom unless we get some kind of new escalation. He believes that this is still a headline-driven market, and we are not out of the woods yet, as factors such as oil, geopolitics, and Fed timing can shift rapidly.
With these broader market trends in view, let’s look at the most oversold healthcare stocks to invest in.
Our Methodology
We sifted through the Finviz stock screener to compile a list of oversold healthcare stocks that have declined by at least 25% over the past six months but for which analysts see potential to recover. We then selected 8 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of hedge fund sentiment for each stock, as of Q4 2025.
Note: All data was recorded on April 17.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
8 Most Oversold Healthcare Stocks to Invest In
8. Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH)
Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) is one of the most oversold healthcare stocks to invest in. Truist cut the price target on Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) to $8 from $9 on April 13 and reiterated a Hold rating on the shares. The rating update came as part of a broader research note previewing Q1 results in Healthcare Services, or HC, with the firm remaining broadly bullish on its HC Services coverage universe. This is primarily because of factors such as continued strong demand trends, overarching secular tailwinds, and a more favorable/stable reimbursement backdrop. It also sees the recent Final Medicare Advantage Rule as an “encouraging data point”.
Truist further told investors in a research note that it continues to see the sector as well-positioned, given that it’s scaled, domestic, and defensive, adding that the group is also a beneficiary of AI/automation/interconnectivity, with strong free cash flow and attractive financial flexibility supporting the ongoing growth, investment/M&A/shareholder friendly initiatives.
Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) provides home care services to patients. The company’s operations are divided into the following business segments: Private Duty Services (PDS), Home Health & Hospice (HHH), and Medical Solutions (MS).
7. Caris Life Sciences Inc. (NASDAQ:CAI)
Caris Life Sciences Inc. (NASDAQ:CAI) is one of the most oversold healthcare stocks to invest in. Jefferies initiated coverage of Caris Life Sciences Inc. (NASDAQ:CAI) with a Buy rating on April 13, setting a $28 price target on the stock. The firm told investors that it sees “secular tailwinds” in the oncology diagnostics space from improving therapies and declining sequencing costs. However, it also cited the “ongoing polarization between the leaders and laggards”, adding that the firm views Caris Life Sciences Inc. (NASDAQ:CAI) and Veracyte as “compelling stocks” given their profitability, valuations, and pipelines.
In another development, Goldman Sachs initiated coverage of Caris Life Sciences Inc. (NASDAQ:CAI) with a Buy rating and $27 price target on April 1. The firm told investors in a research note that the company can continue to see volume growth within the therapy selection offering, adding that it also believes Caris Life Sciences Inc. (NASDAQ:CAI) holds the potential to unlock additional addressable market opportunities through upcoming launches in its pipeline.
Caris Life Sciences Inc. (NASDAQ:CAI) provides diagnostics and anatomic pathology services. The company’s services are offered throughout the United States, Europe, Australia and other international markets.
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