Five Cheap Healthcare Stocks Poised to Explode

#3 OraSure Technologies, Inc. (NASDAQ:OSUR)

– Hedge Funds with Long Positions (as of June 30): 23

– Value of Hedge Funds’ Holdings (as of June 30): $51.51 Million

23 hedge funds that we track were long OraSure Technologies, Inc. (NASDAQ:OSUR) at the end of the second quarter, up by three quarter-over-quarter. However, during the same time the aggregate value of their holdings in it shrank by 22.5%. OraSure Technologies, Inc. (NASDAQ:OSUR) wouldn’t have made it to this list if its stock had extended the rally that was started on August 23, when the company won a contract for as much as $16.6 million from the U.S. Department of Health and Human Services to accelerate the development of its oral test kits for the Zika virus. However, the stock has corrected by more than 9% in the last month, though it is still trading up by 23.45% year-to-date. Analysts at BTIG Research recently downgraded the stock to ‘Neutral’ from ‘Buy’ while keeping their price target on it unchanged at $8.

#2 BioScrip Inc (NASDAQ:BIOS)

– Hedge Funds with Long Positions (as of June 30): 23

– Value of Hedge Funds’ Holdings (as of June 30): $141.82 Million

Hedge funds were extremely bullish on BioScrip in the second quarter, as there were ten more shareholders of the stock at the end of the quarter than there had been at the start of it. That pushed BioScrip Inc (NASDAQ:BIOS) into a tie for the most popular under-$10 healthcare stock as of the end of June among the hedge funds tracked by Insider Monkey. Although BioScrip Inc (NASDAQ:BIOS)’s stock has registered a gain of 63% so far in 2016, it is still down by more than 80% from the highs it made in mid-2013. For its fiscal third quarter, analysts are expecting the company to report a loss of $0.05 per share on revenue of $223.26 million. For the same quarter of its previous fiscal year, BioScrip pulled in $0.04 in EPS on revenue of $247.22 million. Funds that initiated a stake in the company during the April-to-June period included Andrew Goldman‘s Seven Locks Capital Management and Conan Laughlin‘s North Tide Capital.

#1 Amicus Therapeutics, Inc. (NASDAQ:FOLD)

– Hedge Funds with Long Positions (as of June 30): 23

– Value of Hedge Funds’ Holdings (as of June 30): $269.70 Million

Lastly, Amicus Therapeutics, Inc. (NASDAQ:FOLD) was also tied for the top spot on this list, though it gets placed first on account of having more money invested in it than the two stocks that it’s tied with. The 23 hedge funds that we cover which had stakes in it held almost 39% of the company’s float at the end of June. The value of their holdings is in spite of the 35.4% decline in the stock during the second quarter. Amicus Therapeutics, Inc. (NASDAQ:FOLD)’s stock has since rebounded strongly, gaining over 41% since the end of June. According to analysts who track the stock, it could see significant upside in the coming months on the back of a number of near-term catalysts, including U.S. regulatory approval for its drug Galafold, as well as the release of the top-line data from the phase 3 trial of its drug Zorblisa.

Disclosure: None