5 Best Medical Stocks Under $20

In this article, we discuss 5 best medical stocks under $20. If you want to see more stocks in this selection, check out 10 Best Medical Stocks Under $20. 

5. AbCellera Biologics Inc. (NASDAQ:ABCL)

Number of Hedge Fund Holders: 26

Share Price as of December 8: $11.08

AbCellera Biologics Inc. (NASDAQ:ABCL) is headquartered in Vancouver, Canada, and the company develops a full-stack, artificial intelligence-powered antibody discovery platform that searches and analyzes the database of natural immune systems to discover antibodies that could be developed as drugs. AbCellera Biologics Inc. (NASDAQ:ABCL) is one of the best medical stocks to invest in. 

On November 16, Truist analyst Robyn Karnauskas initiated coverage of AbCellera Biologics Inc. (NASDAQ:ABCL) with a Buy rating and a $29 price target. The company is a pioneer in tech-enabled biotech with a proprietary platform that drives swift discovery of antibodies and is validated by the approval of two COVID drugs and 5 molecules in the clinic, the analyst told investors. She added that AbCellera Biologics Inc. (NASDAQ:ABCL) is undervalued, with potential for upside over next 12-24 months coming from new partnerships with better economics and further validation of its platform as programs advance to the clinical stage.

According to Insider Monkey’s data, 26 hedge funds were bullish on AbCellera Biologics Inc. (NASDAQ:ABCL) at the end of September 2022, compared to 17 funds in the prior quarter. Julian Baker and Felix Baker’s Baker Bros. Advisors is the largest stakeholder of the company, with 10.45 million shares worth $103.35 million. 

4. Roivant Sciences Ltd. (NASDAQ:ROIV)

Number of Hedge Fund Holders: 28

Share Price as of December 8: $6.84

Roivant Sciences Ltd. (NASDAQ:ROIV) is a London-based biopharmaceutical and healthcare technology company that researches and develops medicines for the treatment of solid tumors, sickle cell diseases, oncologic malignancies, psoriasis, vitiligo, acne, and staph aureus bacteremia, among others. Roivant Sciences Ltd. (NASDAQ:ROIV) on November 14 posted a Q3 revenue of $12.53 million, beating market estimates by $6.83 million. As of September 30, the company had cash, cash equivalents, and restricted cash of approximately $1.6 billion. 

On November 15, Citi analyst Neena Bitritto-Garg raised the price target on Roivant Sciences Ltd. (NASDAQ:ROIV) to $11 from $10 and maintained a Buy rating on the shares following the fiscal Q2 results. The analyst believes Roivant Sciences Ltd. (NASDAQ:ROIV)’s recent share price momentum could continue into the first half of 2023.

According to Insider Monkey’s data, 28 hedge funds were long Roivant Sciences Ltd. (NASDAQ:ROIV) at the end of Q3 2022, and Daniel Gold’s QVT Financial is the leading position holder in the company, with 129.4 million shares worth $416.6 million. 

3. Insmed Incorporated (NASDAQ:INSM) 

Number of Hedge Fund Holders: 31

Share Price as of December 8: $18.81

Insmed Incorporated (NASDAQ:INSM) is a New Jersey-based biopharmaceutical company that develops and commercializes therapies for patients with serious and rare diseases such as complex lung disease, bronchiectasis, pulmonary arterial hypertension, and other neutrophil-mediated diseases. The Q3 2022 revenue of $67.7 million rose 44.7% year-over-year, beating market estimates by $0.94 million. Insmed Incorporated (NASDAQ:INSM) continues to expect full-year 2022 global revenues for ARIKAYCE to increase at least 30% year-over-year from 2021.

On December 7, Barclays analyst Leon Wang initiated coverage of Insmed Incorporated (NASDAQ:INSM) with an Overweight rating and a $37 price target. The analyst likes the stock’s “significant risk/reward” and views brensocatib’s data in the Phase 3 ASPEN study as the primary value-adding event. He sees a “robust” risk/reward for a “first-in-class drug” in a large total addressable market.

According to Insider Monkey’s data, 31 hedge funds were long Insmed Incorporated (NASDAQ:INSM) at the end of Q3 2022, compared to 28 funds in the prior quarter. William Leland Edwards’ Palo Alto Investors is the biggest stakeholder of the company, with 5.8 million shares worth $125.80 million. 

2. Exelixis, Inc. (NASDAQ:EXEL)

Number of Hedge Fund Holders: 35

Share Price as of December 8: $16.52

Exelixis, Inc. (NASDAQ:EXEL) is a California-based oncology-focused biotechnology company that focuses on the discovery, development, and commercialization of new medicines to treat different cancers in the United States. On November 1, Exelixis, Inc. (NASDAQ:EXEL) reported a Q3 non-GAAP EPS of $0.31 and a revenue of $411.74 million, outperforming Wall Street estimates by $0.07 and $8.58 million, respectively. The company had cash and cash equivalents of $2.1 billion at September 30, 2022, as compared to $1.9 billion at December 31, 2021. 

On November 2, Cowen analyst Yaron Werber maintained an Outperform rating on Exelixis, Inc. (NASDAQ:EXEL) but lowered the price target on the shares to $21 from $26. The analyst said the Q3 results beat expectations and he expects key pipeline updates by year end.

According to Insider Monkey’s data, 35 hedge funds were long Exelixis, Inc. (NASDAQ:EXEL) at the end of Q3 2022, compared to 28 funds in the prior quarter. Jim Simons’ Renaissance Technologies is the leading position holder in the company, with 16 million shares worth $251.3 million. 

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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