10 Oversold Biotech Stocks to Buy Now

1. Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY)

Relative Strength Index (RSI): 39.99

Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) is a commercial-stage pharmaceutical company that develops and commercializes therapies to treat neurological disorders and tops the list for being an oversold stock. The chemical Wakix, which is its product, promotes histamine transmission in the brain by binding to H3 receptors. The company’s pipeline is among the best for people with rare neurological diseases.

Central nervous system diseases are now treated by three orphan rare franchises owned by Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY). Investors are hopeful about the company because each of its brands has potential peak revenues of $1 billion to $2 billion. The company’s pipeline, which includes 13 development programs, includes eight assets as well. Three of these programs are in critical Phase 3 trials, and a fourth is in the early stages of development.

Therefore, if successful, the current pipeline of Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) might eventually produce over $3 billion in net revenue. The company continues to expand its pipeline and work on business development. With over $505 million in cash, cash equivalents, and investments as of September 30, 2024, the firm is well-positioned financially to take advantage of additional commercial development prospects.

Overall, Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) ranks first among the 10 oversold biotech stocks to buy now. While we acknowledge the potential of biotech companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than HRMY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.