12 Most Undervalued Stocks to Invest in for Under $20

2) Elanco Animal Health Incorporated (NYSE:ELAN)

Forward P/E as of January 17: 12.6x

Share Price as of January 17: $12.02

Number of Hedge Fund Holders: 42

Elanco Animal Health Incorporated (NYSE:ELAN), an animal health company, is involved in innovating, developing, manufacturing, and marketing products for pets and farm animals. Stifel maintained its “Buy” rating on the company’s shares. The firm believes that, in 2026 and beyond, the company’s EBITDA growth is expected to outpace revenue growth. Furthermore, the firm opines that EPS is expected to grow faster than EBITDA, hinting that Elanco Animal Health Incorporated (NYSE:ELAN) provides the best risk/reward among Stifel’s other Animal Health names.

The new product launches, like Zenrelia and Credelio Quattro, are expected to fuel future growth. These developments highlight Elanco Animal Health Incorporated (NYSE:ELAN)’s strategic focus on innovation and market penetration. The company’s product pipeline demonstrates significant growth opportunities. The launch of Credelio Quattro, which is expected in Q1 2025, can help the company in the parasiticide segment, thanks to broad parasite coverage and competitive advantages. Furthermore, the strong performance of Experior, primarily in the heifer market, can contribute significantly to growth in 2025.

The potential success of such products, together with the ongoing expansion of Zenrelia’s clinic network, is expected to fuel revenue growth and further strengthen Elanco Animal Health Incorporated (NYSE:ELAN)’s market position over the next few years. Barclays upped its target price on the company’s shares from $19.00 to $20.00, giving an “Overweight” rating on 8^th November.