In this article, we will be taking a look at the 9 Most Undervalued Healthcare Stocks to Buy Now.
On April 17, Matt Powers, managing partner at Powers Advisory Group, appeared on CNBC’s Squawk Box to discuss the forces shaping current market behavior. The latest market response to global concerns, according to him, was a “textbook” V-shaped move, with a fast sell-off and a quick comeback. Notably, despite a war headline and a sharp increase in oil prices, the S&P 500 reached its highs in around 15 trading days. The market showed underlying strength and tenacity as it hardly approached the correction area. Powers claimed that until additional geopolitical escalations occur, a large portion of the macro risk had already been priced in, indicating a near-term bottom. However, he stressed that markets are still very susceptible to news, especially when it comes to oil, geopolitics, and the timing of the Federal Reserve.
The first quarter has been characterized by this volatility, as the S&P 500 has fluctuated between all-time highs and a decline. Investors are uneasy due to worries about high valuations, economic instability brought on by tensions in the Middle East, and inflation brought on by growing energy prices. Capital has started to shift away from large-cap technology equities in reaction. John Stoltzfus of Oppenheimer, meanwhile, sees this as a more comprehensive diversification strategy in which investors reallocate gains across industries rather than a retreat from technology.
Traditionally a defensive strategy, healthcare has found it difficult to profit from this change. Due to pressure from post-COVID earnings normalization and policy-related valuation concerns, the sector is down around 4% so far this year, trailing a flat broader index. JPMorgan analysts saw evidence of stabilization despite slower earnings growth over the previous five years, indicating that the worst may be behind us.
At the same time, industry fundamentals are being strengthened by increased merger and acquisition activity. This has raised awareness of inexpensive healthcare stocks, especially those backed by insider purchases, which are frequently seen as a powerful signal in an industry that is influenced by changes in clinical, regulatory, and mood. Institutional investors echo this optimism, supported by Deloitte’s February 16, 2026, Global Health Care Outlook, which highlights a sector navigating short-term challenges but positioned for long-term growth, with over 70% of non-US executives expecting higher revenues and profits.
With that said, let’s take a look at the most undervalued stocks.
Our Methodology
For our methodology, we screened for stocks with a P/E below 15 and positive upside. From the filtered list, we picked stocks with the most recent developments and news and ranked them according to their PE ratios.
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).
Here is our list of the 9 most undervalued healthcare stocks to buy now.
9. Elevance Health, Inc. (NYSE:ELV)
PE Ratio: 13.02
Elevance Health, Inc. (NYSE:ELV) is one of the most undervalued stocks on this list.
TheFly reported on April 20 that Jefferies analyst David Windley revised his outlook on ELV, trimming the firm’s price target to $391 from $395 while maintaining a Buy rating on the stock. The adjustment follows a detailed evaluation of health insurance offerings within the Health Insurance Exchange market. Based on this deeper analysis, the firm updated its financial projections across its managed care coverage, reflecting refined assumptions tied to plan dynamics and market conditions in the exchange segment.
Separately, earlier on March 31, Elevance Health, Inc. (NYSE:ELV) announced a set of senior leadership changes spanning its Health Benefits segment and Carelon services division to support operational execution and long-term growth. The restructuring is intended to improve coordination across business units, enhance efficiency, and accelerate decision-making as the company expands its services platform.
Carelon, which delivers healthcare, pharmacy, behavioral, and data-driven solutions to a large consumer base, remains a key focus of this strategy. The updated leadership structure also aims to strengthen integration with the Health Benefits business, enabling more aligned offerings that improve care outcomes, reduce costs, and simplify the overall healthcare experience for members while supporting sustained enterprise performance.
Elevance Health, Inc. (NYSE:ELV) is a U.S. health company providing managed care and health solutions to over 119 million people. It operates across commercial, Medicare, and Medicaid markets through brands like Anthem Blue Cross Blue Shield, WellPoint, and Carelon.
8. The Cigna Group (NYSE:CI)
PE Ratio: 12.48
The Cigna Group (NYSE:CI) is one of the most undervalued stocks to invest in.
TheFly reported on April 20 that Jefferies reaffirmed its Buy recommendation on CI while slightly reducing its price objective from $333 to $330 after revising its outlook for managed care companies based on a detailed review of Health Insurance Exchange plan offerings.
Additionally, on April 16, The Cigna Group (NYSE:CI) Foundation announced the expansion of its Impact Fund into Memphis, aiming to support local nonprofits working to improve community health outcomes. Eligible organizations can apply for funding of up to $250,000 distributed over two years to advance initiatives focused on increasing access to primary healthcare services and promoting nutrition, healthy food availability, and lifestyle improvements. Applications must be submitted by May 15, 2026, with selected groups entering grant terms beginning December 1, 2026, through December 1, 2028.
In addition to financial support, participating nonprofits will collaborate with health experts and Foundation representatives through annual meetings to share progress and strategies. The initiative builds on prior investments targeting social drivers of health and reflects a continued commitment to addressing healthcare access challenges, including provider shortages, transportation barriers, and limited availability of affordable, nutritious food in underserved Memphis communities.
The Cigna Group (NYSE:CI) is a global health services and insurance company based in Connecticut, serving over 180 million customer relationships. It operates through Cigna Healthcare and Evernorth Health Services, offering health benefits, pharmacy, and care solutions.
