5 Best Medical Stocks Under $20

1. Viatris Inc. (NASDAQ:VTRS)

Number of Hedge Fund Holders: 50

Share Price as of December 8: $10.90

Viatris Inc. (NASDAQ:VTRS) is a Pennsylvania-based healthcare company that offers prescription brand drugs, generic drugs, complex generic drugs, biosimilars, and active pharmaceutical ingredients for therapeutic areas including non-communicable and infectious diseases, oncology, immunology, endocrinology, ophthalmology, and dermatology. On November 7, Viatris Inc. (NASDAQ:VTRS) declared a $0.12 per share quarterly dividend, in line with previous. The dividend is distributable on December 16, to shareholders of record on November 23. The dividend yield on December 8 came in at 4.40%. 

On November 9, UBS analyst Ashwani Verma upgraded Viatris Inc. (NASDAQ:VTRS) to Neutral from Sell with a price target of $12, up from $9. The analyst sees limited upside or downside in the near-term, but acknowledged that recent efforts are improving the company’s long-term prospects.

According to Insider Monkey’s data, 50 hedge funds were long Viatris Inc. (NASDAQ:VTRS) at the end of Q3 2022, and Stephen Dubois’ Camber Capital Management held the leading position in the company, consisting of 30 million shares worth $255.60 million. 

Miller Value Partners made the following comment about Viatris Inc. (NASDAQ:VTRS) in its Q3 2022 investor letter:

“Viatris Inc. (NASDAQ:VTRS) fell 17.8% during the quarter. Viatris reported 2Q22 revenue of $4.12 billion, -3% Y/Y on an operational basis, below consensus of $4.19 billion, and diluted EPS of $0.26, compared to a net loss per share of -$0.23 in 2Q21, ahead of analyst expectations for EPS of $0.19. The company generated 2Q22 FCF of $718.6 million, bringing TTM FCF to $3,082.9 million, or a FCF yield of 26.6%. In the 1H22, Viatris retired $1.5 billion in debt, which puts the company well on track to achieve its FY22 debt paydown target of $2.0 billion. While the company lowered FY22 revenue guidance to be in a range of $16.2-16.7 billion, compared to previous guidance for revenue of $17-17.5 billion, this revision is solely attributable to the incremental impact of FX headwinds. The company reaffirmed FY22 guidance for Adjusted EBITDA of $5.8-6.2 billion (36.5% margin at midpoint) and FCF of $2.5-2.9 billion, or a forward FCF yield of 23.3%. The company generated approximately $84 million in new product revenues in 2Q22, bringing 1H22 revenues to $205 million, which were primarily driven by interchangeable Semglee in the US, and the company remains on track to achieve ~$600 million (3.7% of FY22 guided revenue at the midpoint) in FY22 new product revenues.”

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