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.
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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. 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. and Veracyte as “compelling stocks” given their profitability, valuations, and pipelines.
In another development, Goldman Sachs initiated coverage of Caris Life Sciences Inc. 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. holds the potential to unlock additional addressable market opportunities through upcoming launches in its pipeline.
Caris Life Sciences Inc. provides diagnostics and anatomic pathology services. The company’s services are offered throughout the United States, Europe, Australia and other international markets.
6. Doximity, Inc. (NYSE:DOCS)
Doximity, Inc. (NYSE:DOCS) is one of the most oversold healthcare stocks to invest in. On April 16, BofA cut the price target on Doximity, Inc. (NYSE:DOCS) to $47 from $56, reaffirming a Buy rating on the shares and telling investors that the firm’s sixteenth quarterly survey on pharma advertising had “mixed, but somewhat positive takeaways”. It further reported that Doximity, Inc.’s (NYSE:DOCS) specifics were “also mixed-to-positive,” with the strongest outlook for overall spend growth in the history of the survey. However, the trends reflected a notably weaker outlook on the company’s fast-growing point of care module. The firm thus lowered its revenue estimate for fiscal year 2027 and target EBITDA multiple, as visibility into an accelerated shift in spend to HCP channels is more limited.
Doximity, Inc. also received a rating update from KeyBanc on April 13. The firm lowered the price target on the stock to $30 from $38 and maintained an Overweight rating on the shares.
Doximity, Inc. is involved in the development and operation of an online platform for medical professionals. The company employs its cloud-based software to allow users to coordinate patient care, collaborate with their colleagues, conduct virtual patient visits, manage their careers, and more.
5. Viridian Therapeutics, Inc. (NASDAQ:VRDN)
Viridian Therapeutics, Inc. (NASDAQ:VRDN) is one of the most oversold healthcare stocks to invest in. Truist cut the price target on Viridian Therapeutics, Inc. (NASDAQ:VRDN) to $36 from $40 on April 8 but maintained a Buy rating on the shares. The rating update came as part of a broader research note previewing fiscal Q1 earnings in Biotech, with the firm telling investors in the research note that reactivity to regulatory and policy shifts across the sector is continuing to ease. Truist also stated that it is seeing a recent pickup in deal activity, which holds the potential to build momentum through the remainder of the year into midterms.
For Viridian Therapeutics, Inc., Truist noted that although it has slightly tempered its ultimate expectations on the company’s commercial opportunity in TED, with Veli’ peaking at $630 million in 2031 and Ele’ peaking at $1.14 billion in 2035, the debate is likely to continue as investors and even docs balance the real-world utility of Viridian Therapeutics, Inc.’s reduced therapeutic burden value prop with Amgen’s existing doc, patient, and payer relationships and existing commercial infrastructure and support.
Viridian Therapeutics, Inc. is a biopharmaceutical company involved in the development of medicines for autoimmune and rare diseases. The company employs antibody discovery and protein engineering for the creation of new therapies, and is advancing late-stage IGF-1R therapies for thyroid eye disease (TED) while also developing a potential TSHR-targeted treatment for TED and Graves’ disease.
4. Insulet Corporation (NASDAQ:PODD)
Insulet Corporation (NASDAQ:PODD) is one of the most oversold healthcare stocks to invest in. Insulet Corporation (NASDAQ:PODD) received a rating update from Truist on April 15. The firm cut the price target on the stock to $315 from $360 and reaffirmed a Buy rating on the shares. The rating update came as part of a broader research note previewing fiscal Q1 results in the MedTech sector.
Truist told investors in the research note that the firm anticipates fiscal Q1 performances to be in line or better than what feels like an anxious investor sentiment around the fiscal Q1 volumes. It further stated that while the stock trades at a slight discount compared to its peer group average of high-growth profitable companies, Truist believes that it should trade at in-line levels, if not at a premium, to its peer group, given its higher revenue and profit growth prospects.
Insulet Corporation also received a rating update from RBC Capital on April 14, with the firm cutting the price target on the stock to $325 from $380 while reiterating an Outperform rating on the shares.
Insulet Corporation is a medical device company that develops, markets, and manufactures an insulin infusion system for people with insulin-dependent diabetes. The company specializes in diabetes supplies, along with other diabetes related products and supplies, including pump supplies, traditional insulin pumps, blood glucose testing supplies, and pharmaceuticals.
3. Alnylam Pharmaceuticals Inc. (NASDAQ:ALNY)
Alnylam Pharmaceuticals Inc. (NASDAQ:ALNY) is one of the most oversold healthcare stocks to invest in. Truist cut the price target on Alnylam Pharmaceuticals Inc. (NASDAQ:ALNY) to $505 from $515 on April 13, reiterating a Buy rating on the shares. The rating update came as part of a broader research note previewing Q1 results among Biotech names. The firm told investors in a research note that although management was confident in robust year-over-year growth, it cautioned for fiscal Q1 seasonal weakness in the United States from typical payer dynamics and 2 fewer shipping weeks.
In a separate development, Alnylam Pharmaceuticals Inc. announced on March 24 a set of strategic efforts aimed at accelerating earlier recognition and improving care coordination for patients with the cardiomyopathy of wild-type or hereditary transthyretin-mediated amyloidosis (ATTR-CM). The company is advancing, through complementary initiatives with Viz.ai and the American Heart Association, a comprehensive, system‑level approach addressing the continuous challenges of underdiagnosis and fragmented care in ATTR‑CM.
Alnylam Pharmaceuticals Inc. is a biopharmaceutical company that develops and commercializes novel therapeutics based on ribonucleic acid interference.
2. Veeva Systems Inc. (NYSE:VEEV)
Veeva Systems Inc. (NYSE:VEEV) is one of the most oversold healthcare stocks to invest in. Veeva Systems Inc. (NYSE:VEEV) was downgraded to Neutral from Buy by Citi on April 10, with the firm bringing the price target on the stock down to $176 from $291. The firm told investors in a research note that it is “turning more selective” in the application software group with six downgrades, and added that the rating changes highlight its view of underweight software. Citi sees a lack of catalysts for the stocks over the next 12 months.
In a separate development, Veeva Systems Inc. announced the acquisition of Ostro on March 10, which is a brand engagement platform for life sciences that gives patients and doctors immediate, compliant answers through an easy-to-use AI-driven chat experience.
Management stated that Veeva Systems Inc. acquired Ostro for a purchase price of around $100 million in cash and long-term equity retention grants, and added that Ostro will continue its operations as an independent unit led by CEO Chase Feiger.
Veeva Systems Inc. provides industry cloud solutions for the global life science industry. Its offerings include cloud software, data, and business consulting. The company’s product categories encompass Veeva Development Cloud, Veeva Quality Cloud, Veeva Commercial Cloud, and Veeva Data Cloud.
1. Boston Scientific Corporation (NYSE:BSX)
Boston Scientific Corporation (NYSE:BSX) is one of the most oversold healthcare stocks to invest in. Truist cut the price target on Boston Scientific Corporation (NYSE:BSX) to $90 from $92 on April 15 and maintained a Buy rating on the shares. The rating update came as part of a broader research note previewing fiscal Q1 results in MedTech, with the firm stating that it expects fiscal Q1 performances to be in line or better than what feels like an anxious investor sentiment around Q1 volumes. It further told investors in a research note that the reduced price target reflects some multiple contraction for the group since the firm’s last valuation update. However, Truist also believes that the stock’s valuation can at a minimum rebound back up to its one-year forward earnings of 23-times.
Boston Scientific Corporation also received a rating update from RBC Capital on April 14. The firm cut the price target on the stock to $105 from $115 and maintained an Outperform rating on the shares. The rating update came as part of a broader research note previewing Q1 results for MedTech names.
Boston Scientific Corporation manufactures, develops, and markets medical devices used in interventional medical procedures. Its operations are divided into Cardiovascular and MedSurg segments. The Cardiovascular segment covers Cardiology and Peripheral Interventions, while the MedSurg segment comprises Urology, Endoscopy, and Neuromodulation.
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