12 Cheap Healthcare Stocks to Buy Heading into 2025

3. Novartis AG (NYSE:NVS)

P/E Ratio: 11.19 

Novartis AG (NYSE:NVS), based in Basel, Switzerland, is a global healthcare company specializing in developing, manufacturing, and marketing prescription and generic drugs, as well as eye care products. Its focus spans oncology, cardiovascular, neurological, respiratory, immune, and infectious diseases. The company’s key products include Adakveo for sickle cell disease, Afinitor for cancer, Aimovig for migraines, and Beovu for macular degeneration, alongside generics and biosimilars through its Sandoz subsidiary.

Novartis AG (NYSE:NVS) announced a 10% increase in net revenues for the third quarter of 2024. Strong demand for important goods, such as Entresto and Cosentyx, which witnessed increases in sales of 26% and 28%, respectively, drove this growth. Additionally, the company’s core operating income increased by 20%, and its core margin increased to 40.1%, representing a 340 basis point improvement from the previous year. These factors highlight Novartis as one of the promising cheap healthcare stocks for investors to consider. In comparison to the prior year, core earnings per share (EPS) increased by 20% to $2.06.

Novartis AG (NYSE:NVS) reported a 20% increase in core operating income and an 11% increase in net sales for the first nine months of 2024. During this time, free cash flow hit a record $12.6 billion, up 15% from the previous year, and core EPS was $5.83, up 21%. The FDA just approved the company’s early breast cancer treatment, which could increase its target market by threefold.

Analysts hold a consensus Moderate Buy rating on the stock. As of Q3 2024, 24 hedge funds as tracked by the Insider Monkey database, held shares in the company. The largest shareholder was Renaissance Technologies with stakes worth $264.4 million.