5 Best Healthcare Stocks to Buy Under $20

2. Viatris Inc. (NASDAQ:VTRS)

Number of Hedge Fund Holders: 43

Share Price: $11.5

Viatris Inc. (NASDAQ:VTRS) is a pharmaceutical company. It offers prescription brand drugs, generic drugs, complex generic drugs, biosimilars, and active pharmaceutical ingredients.

A total of 43 hedge funds were long Viatris Inc. (NASDAQ:VTRS) in the fourth quarter, with a total stake value of $1.2 billion.

Piper Sandler analysts maintain a Neutral rating and $13 price target on Viatris Inc. (NASDAQ:VTRS) as of March 28.

Greenlight Capital said the following about Viatris Inc. (NASDAQ:VTRS) in its fourth-quarter 2023 investor letter:

We established medium-sized positions in Alight (ALIT) and Viatris Inc. (NASDAQ:VTRS), and a small position in Syensqo (Belgium: SYENS). VTRS is a manufacturer of generic and off-patent branded drugs. The company was created in 2020 after a merger between Mylan and a division of Pfizer. We previously invested in Mylan, but sold five years ago due to concerns around management’s ability to deliver on promises, as well as deterioration in the generic industry. Those concerns were well-founded, as the shares proceeded to decline by more than 60% after we exited. After a recent management change, we decided to take another look and found that after years of sharp declines, generic drug pricing has stabilized and competition has been diminished. The company’s revenue and cash flow are now growing, and we expect this improvement to accelerate. VTRS’ new management team has simplified its drug portfolio via various divestitures and has committed to returning 50% of free cash flow to shareholders through “aggressive” share buybacks, implying a double-digit capital return based on our estimates. We acquired our shares at an average price of $10.63, or just 4.0x 2024 consensus earnings. VTRS shares ended the quarter at $10.83.”