11 Best Healthcare Stocks Under $50
In this article, we will be taking a look at the 11 best healthcare stocks under $50. To skip our detailed analysis of the healthcare sector, you can go directly to see the 5 Best Healthcare Stocks Under $50.
After the COVID-19 pandemic, many investors believed that the shining moment being enjoyed by healthcare and vaccine stocks was finally about to blow over. However, this way of thinking may have been premature. On July 21, the S&P 500 healthcare sector was up by 18.95 points, representing an increase of 1.21%. The sector has been hanging on as the market continues to shift and transform in light of several developments, most notably the influence of artificial intelligence and big tech companies. Considering the popularity of these latter categories of stocks, it will come as a pleasant surprise for healthcare investors that, at this point, financial professionals are considering healthcare to be a sector that is creating more opportunities for the technology industry and those investing in it as well.
"Too Compelling To Ignore"
This trend was noted by Jamie Cox, the managing partner at Harris Financial Group, in a CNBC interview on July 21. In the words of Cox, the healthcare sector, which is viewed as a sector operating just adjacent to the tech sector today, is "too compelling to ignore" at this moment, signaling that those who want to cash in on the booming tech trade this year can take an alternative route through the healthcare sector to achieve their goals. Here are some comments Cox made on CNBC on this matter:
"It's all about healthcare, Dom. I mean, you know, tech and healthcare, the intersection of those two sectors cannot be ignored. There's so much innovation, so much R&D that happened during the pandemic and we're just starting to see some of the pieces of it come to the marketplace. One particular area, medical devices - I mean you have people voluntarily wearing continuous glucose monitors. So companies like Insulet or Dexcom, these are companies that are absolutely knocking it out of the park. People are paying really close attention to healthcare and that is brought about by technology."
Considering these comments, investors can expect to see an increasing interplay between technology companies and healthcare companies in 2023, especially as tech companies themselves begin rapid innovative processes through artificial intelligence. On whether there is an investing angle in healthcare from the tech and artificial intelligence viewpoint, Cox said the following:
"It's already happening. I mean, Meta has created algorithms to predict protein folding. The President actually referenced cancer research, and Meta is already sort of doing it. Protein folding will predict different strains of proteins and how they will react and create cancers in the body, and if you can predict the way a protein will fold then you can create drugs or target therapies to be able to treat it. So this is already here, and basically, we're gonna be seeing the benefits of it, or investible benefits of it in the years to come. But it's not gonna necessarily accrue to a healthcare company or a drug company like Pfizer. It can also accrue to a company like Meta. That's what I'm saying, the intersection of healthcare and technology is here to stay."
Medical Devices For The Win
For Cox, the place to be in the healthcare investing space is the medical devices area. He believes that this area will see the "most benefit" in light of the growing collaboration between healthcare and technology services. He pinpointed companies focusing on diabetes and cardiac care as the ones to keep an eye on as the situation further develops since these areas will become the best investment opportunities in the healthcare space in the near future, according to Cox.
Considering viewpoints such as those presented by Cox this July, healthcare companies such as Merck & Co., Inc. (NYSE:MRK), Pfizer Inc. (NYSE:PFE), and Walgreens Boots Alliance, Inc. (NASDAQ:WBA), among others, can expect to reap the benefits of the tech rally and the AI boom just as much as other players in the market. Considering this interplay of the two sectors, we have compiled a list of the best healthcare stocks to buy under $50 for investors looking to buy into this promising industry today. Considering current developments, these stocks may very well be some of the best long-term healthcare stocks to stick by. Also, considering the fact that they are some of the best cheap healthcare stocks on the market today, they may serve as attractive investment options for healthcare investors in 2023.
Our Methodology
We used a stock screen to find healthcare stocks under $50 and then selected the most popular stocks using Insider Monkey's hedge fund data for the first quarter. The stocks are ranked based on the number of hedge funds holding stakes in them, from the lowest to the highest number.
Best Healthcare Stocks Under $50
11. Vericel Corporation (NASDAQ:VCEL)
Number of Hedge Fund Holders: 19
Share Price as of July 21: $39.02
Vericel Corporation (NASDAQ:VCEL) is a commercial-stage biopharmaceutical company based in Cambridge, Massachusetts. The company researches, develops, manufactures, and distributes cellular therapies for sports medicine and severe burn care markets in the US.
Vericel Corporation (NASDAQ:VCEL) was spotted in the 13F holdings of 19 hedge funds in the first quarter, with a total stake value of $67.5 million.
Samuel Brodovsky, an analyst at Truist Securities, maintains a Hold rating on shares of Vericel Corporation (NASDAQ:VCEL) as of July 19. The analyst also raised his price target on the stock from $36 to $42.
Carillon Tower Advisers mentioned Vericel Corporation (NASDAQ:VCEL) in its second-quarter 2022 investor letter:
“Vericel Corporation (NASDAQ:VCEL) develops products for tissue replacement including the MACI cartilage and Epicel skin replacement products. The stock was down after management provided soft second-quarter guidance for the MACI product on the first-quarter earnings call.”
10. Envista Holdings Corporation (NYSE:NVST)
Number of Hedge Fund Holders: 25
Share Price as of July 21: $35.36
As of July 11, Michael Cherny at BofA Securities holds a Buy rating on shares of Envista Holdings Corporation (NYSE:NVST). The analyst also placed a price target of $45 on the shares.
Envista Holdings Corporation (NYSE:NVST) is a healthcare equipment company based in Brea, California. The company develops, manufactures, markets, and sells dental products internationally. It operates through its Specialty Products & Technologies and Equipment & Consumables segments.
There were 25 hedge funds long Envista Holdings Corporation (NYSE:NVST) in the first quarter, with a total stake value of $710.5 million.
Sciencast Management was the largest shareholder in Envista Holdings Corporation (NYSE:NVST) at the end of the first quarter, holding 8,438 shares in the company.
Here's what Oakmark Funds said about Envista Holdings Corporation (NYSE:NVST) in its first-quarter 2023 investor letter:
“Envista Holdings Corporation (NYSE:NVST) is a leading dental products manufacturer. You may recall this was a successful investment dating back to 2020 that we sold less than a year ago. During the tumult in smaller capitalization companies in the first quarter, the share price once again met our criteria for investment, and its strong fundamentals matched our expectations. Unfortunately, the market began to agree with our assessment of attractiveness before we could build a full position. This is both a high-quality problem and a reality for investors as value conscious as we are.”
9. Exelixis, Inc. (NASDAQ:EXEL)
Number of Hedge Fund Holders: 28
Share Price as of July 21: $19.95
We saw 28 hedge funds long Exelixis, Inc. (NASDAQ:EXEL) at the end of the first quarter. Their total stake value in the company was $1.2 billion.
Exelixis, Inc. (NASDAQ:EXEL) is a biotechnology company with a focus on oncology. The company works to discover, develop, and commercialize new medicines for cancer treatment in the US. It is based in Alameda, California.
A Market Outperform rating was reiterated on shares of Exelixis, Inc. (NASDAQ:EXEL) on July 19 by Silvan Tuerkcan, an analyst at JMP Securities. The analyst also maintains a price target of $24 on the shares.
Like Merck & Co., Inc. (NYSE:MRK), Pfizer Inc. (NYSE:PFE), and Walgreens Boots Alliance, Inc. (NASDAQ:WBA), Exelixis, Inc. (NASDAQ:EXEL) is a highly popular healthcare stock among elite hedge funds today.
8. GlaxoSmithKline plc (NYSE:GSK)
Number of Hedge Fund Holders: 33
Share Price as of July 21: $35.63
Bailard Inc held the most shares in GlaxoSmithKline plc (NYSE:GSK) at the end of the first quarter, amounting to 16,293 shares.
GlaxoSmithKline plc (NYSE:GSK) is a healthcare and pharmaceutical company based in Brentford, United Kingdom. The company engages in the research, development, and manufacture of vaccines and specialty medicines to prevent and treat disease in the UK, the US, and internationally. It operates through its Pharmaceuticals, Pharmaceuticals R&D, Vaccines, and Consumer Healthcare segments.
GlaxoSmithKline plc (NYSE:GSK) was spotted in the portfolios of 33 hedge funds in the first quarter, with a total stake value of $1.3 billion.
Like Merck & Co., Inc. (NYSE:MRK), Pfizer Inc. (NYSE:PFE), and Walgreens Boots Alliance, Inc. (NASDAQ:WBA), GlaxoSmithKline plc (NYSE:GSK) is a healthcare stock hedge funds are piling into this year.
7. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Number of Hedge Fund Holders: 39
Share Price as of July 21: $30.24
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is a pharmacy-led health and beauty retail company. It is based in Deerfield, Illinois. The company sells prescription drugs alongside retail health products and more.
Charles Ryhee, an analyst at TD Cowen, maintains an Outperform rating on shares of Walgreens Boots Alliance, Inc. (NASDAQ:WBA) as of June 29. The analyst also holds a price target of $41 on the stock.
A total of 39 hedge funds held stakes in Walgreens Boots Alliance, Inc. (NASDAQ:WBA) at the end of the first quarter. Their total stake value in the company was $678.5 million.
6. Xenon Pharmaceuticals Inc. (NASDAQ:XENE)
Number of Hedge Fund Holders: 40
Share Price as of July 21: $37.46
In the first quarter, 40 hedge funds were long Xenon Pharmaceuticals Inc. (NASDAQ:XENE), with a total stake value of $1.2 billion.
An Outperform rating was reiterated on shares of Xenon Pharmaceuticals Inc. (NASDAQ:XENE) on July 17 by Brian Abrahams, an analyst at RBC Capital. The analyst also maintains a price target of $51 on the shares.
Xenon Pharmaceuticals Inc. (NASDAQ:XENE) is a clinical-stage biotechnology company based in Burnaby, Canada. The company develops therapeutics to treat patients with neurological disorders in Canada.
VenBio Select Advisor was the most prominent shareholder in Xenon Pharmaceuticals Inc. (NASDAQ:XENE) at the end of the first quarter, holding 4.9 million shares in the company.
Click to continue reading and see the 5 Best Healthcare Stocks Under $50.
Suggested articles:
Disclosure: None. 11 Best Healthcare Stocks Under $50 is originally published on Insider Monkey.
