5 Best Healthcare Stocks Under $50

In this article, we will be taking a look at the 5 best healthcare stocks under $50. To read our detailed analysis of the healthcare sector, you can go directly to see the 11 Best Healthcare Stocks Under $50.

5. Catalent, Inc. (NYSE:CTLT)

Number of Hedge Fund Holders: 42

Share Price as of July 21: $47.88

Catalent, Inc. (NYSE:CTLT) is a pharmaceutical company based in Somerset, New Jersey. It provides solutions for drugs, protein-based biologics, and more.

On June 30, Sean Dodge at RBC Capital reiterated an Outperform rating and $49 price target on Catalent, Inc. (NYSE:CTLT) shares.

Catalent, Inc. (NYSE:CTLT) had 42 hedge funds long its stock in the first quarter, with a total stake value of $1.2 billion.

Aristotle Capital Boston, LLC mentioned Catalent, Inc. (NYSE:CTLT) in its first-quarter 2023 investor letter:

“Catalent, Inc. (NYSE:CTLT), a pharmaceutical contract development and manufacturing organization, appreciated amid positive momentum within the company’s Biologics segment, a renewed focus on improving efficiencies, and rumblings that the company may be acquired. We maintain a position, as we believe the long-term value creation opportunity for the company remains intact, driven by favorable outsourcing trends and the company’s competitive position in biologics, particularly within the company’s cell and gene therapy sub-segments.”

4. BridgeBio Pharma, Inc. (NASDAQ:BBIO)

Number of Hedge Fund Holders: 44

Share Price as of July 21: $34.70

Paul Choi at Goldman Sachs maintains a Buy rating and $50 price target on BridgeBio Pharma, Inc. (NASDAQ:BBIO) shares as of July 18.

BridgeBio Pharma, Inc. (NASDAQ:BBIO) is a biotechnology company working on medicines for genetic diseases. It is based in Palo Alto, California.

Our hedge fund data for the first quarter shows 44 hedge funds long BridgeBio Pharma, Inc. (NASDAQ:BBIO). Their total stake value was $861 million.

3. Natera, Inc. (NASDAQ:NTRA)

Number of Hedge Fund Holders: 47

Share Price as of July 21: $48.42

At the end of the first quarter, 47 hedge funds held stakes in Natera, Inc. (NASDAQ:NTRA), with a total stake value of $1.4 billion.

Natera, Inc. (NASDAQ:NTRA) is another biotech company on our list. It develops and commercializes molecular testing services internationally.

A Buy rating was maintained on Natera, Inc. (NASDAQ:NTRA) shares on July 21 by Matthew Sykes at Goldman Sachs, alongside a $60 price target.

Fred Alger Management made the following comment about Natera, Inc. (NASDAQ:NTRA) in its first-quarter 2023 investor letter:

“Natera, Inc. (NASDAQ:NTRA) is a specialty lab providing genetic testing services in the reproductive health, oncology and transplant markets. Natera’s test portfolio falls under three categories: (1) reproductive health; (2) oncology; and (3) transplant. Reproductive health tests are run to screen for common genetic disorders such as trisomy 13, 18, and 21 in pregnant women – these tests are also known as non-invasive prenatal testing (NIPT). The company’s oncology franchise is led by Signatera, a test used to detect minimal residual disease (MRD) – the applications of this test are primarily to monitor therapy response and detect cancer recurrence. Lastly, Natera’s transplant franchise is led by Prospera, a test used to monitor transplant organ rejection. Natera’s tests are all based on the company’s proprietary liquid biopsy platform to detect cell-free DNA. During the period, shares contributed to performance primarily driven by strong fiscal fourth quarter results, solid 2023 financial guidance and positive reimbursement coverage decisions. Specifically on reimbursement, Natera announced in February that Centers for Medicare & Medicaid Services (CMS) would be covering the company’s Signatera Breast test for eligible breast cancer patients. This is an important update as the company is already running a significant volume of Signatera Breast tests with limited reimbursement. Consequently, we believe CMS coverage should contribute to additional revenue, margin, and cash flow. Natera also announced the first two positive commercial payer coverage decisions for Signatera in March 2023.”

2. Baxter International Inc. (NYSE:BAX)

Number of Hedge Fund Holders: 55

Share Price as of July 21: $48.85

Baxter International Inc. (NYSE:BAX) was seen in the 13F holdings of 55 funds in the first quarter, with a total stake value of $2.1 billion.

Rick Wise at Stifel holds a Buy rating and a $56 price target on Baxter International Inc. (NYSE:BAX) shares as of July 12.

Baxter International Inc. (NYSE:BAX) is a healthcare equipment company. It offers peritoneal dialysis and hemodialysis services, among more.

Here’s what Oakmark Funds said about Baxter International Inc. (NYSE:BAX) in its second-quarter 2023 investor letter:

“Baxter International Inc. (NYSE:BAX) is a provider of medical devices and health care supplies used in patient care. The company’s competitive advantages include leading scale, a large installed base and long-term customer relationships. Demand for Baxter’s products tends to be stable and predictable. We had invested in Baxter a few years ago when Joe Almeida joined the company as CEO, and we believe that he and his management team are focused on growing per share value. Recently, we got another chance to buy shares after the price fell significantly due to margin pressure from inflation, semiconductor shortages and ripple effects related to Covid-19. We see these issues as short term in nature and think that management will restore higher margins in the years ahead. As a result, we believe the stock is cheap at less than 10x our estimate of normalized earnings.”

1. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 73

Share Price as of July 21: $37.23

Pfizer Inc. (NYSE:PFE) is a pharmaceutical company. It sells biopharmaceutical products globally, including vaccines and other medicines.

We saw 73 hedge funds long Pfizer Inc. (NYSE:PFE) in the first quarter. Their total stake value was $2.2 billion.

Rajesh Kumar at HSBC initiated coverage on Pfizer Inc. (NYSE:PFE) shares with a Buy rating and a $50 price target on July 14.

See also 30 Cities With the Best Healthcare in the World and 11 Best Mid-Cap Healthcare Stocks To Buy Now.