In this article, we will take a look at the 5 most promising healthcare stocks according to analysts. To see more such companies, go directly to 12 Most Promising Healthcare Stocks According to Analysts.
5. Roivant Sciences Ltd. (NASDAQ:ROIV)
Number of Hedge Fund Holders: 35
One-Year Average Price Estimate: $13.57
Healthcare technology company Roivant Sciences Ltd. (NASDAQ:ROIV) is a relatively low-cost healthcare stock in our list of the most promising healthcare stocks according to analysts. Over the past 12 months Roivant Sciences Ltd. (NASDAQ:ROIV) has gained about 57% in value.
In February, Roivant Sciences Ltd. (NASDAQ:ROIV) posted its fiscal Q3 results. Revenue in the period fell about 30% YoY, but still beat estimates by $2.27 million.
4. Royalty Pharma plc (NASDAQ:RPRX)
Number of Hedge Fund Holders: 36
One-Year Average Price Estimate: $52.98
New York-based Royalty Pharma plc (NASDAQ:RPRX) is operating in the biopharmaceutical industry. Royalty Pharma plc (NASDAQ:RPRX) ranks 4th in our list of the most promising healthcare stocks according to analysts.
In January, Royalty Pharma plc (NASDAQ:RPRX) declared a quarterly dividend of $0.20 per share, which was a 5.3% increase from the prior dividend. Forward dividend yield at the time came in at 2.1%. The dividend was payable on March 15 to shareholders of record as of February 16.
Insider Monkey’s database of 943 hedge funds shows that 36 hedge funds had stakes in Royalty Pharma plc (NASDAQ:RPRX) at the end of the fourth quarter of 2022. The total worth of these stakes was $1.1 billion. The biggest hedge fund stakeholder of Royalty Pharma plc (NASDAQ:RPRX) was Andreas Halvorsen’s Viking Global which had a stake of $396 million.
3. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)
Number of Hedge Fund Holders: 38
One-Year Average Price Estimate: $202.00
As of March 13, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) was trading at around $135, while its one-year average price target stands at $202. This shows a significant upside potential for Jazz Pharmaceuticals plc (NASDAQ:JAZZ) from the current levels.
At the end of the December quarter, 38 hedge funds had stakes in Jazz Pharmaceuticals plc (NASDAQ:JAZZ), according to Insider Monkey’s proprietary database. The total value of these stakes was about $1.3 billion. The most notable hedge fund stakeholder of Jazz Pharmaceuticals plc (NASDAQ:JAZZ) was Bernard Horn’s Polaris Capital Management with a $200 million stake.
Recently, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) posted Q4 results that missed analyst estimates for both income and revenue. However, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) said it is expecting its 2023 revenue to come in the range of $3.675 billion to $3.875 billion, which was better than the consensus estimate of $3.76 billion.
2. Lantheus Holdings, Inc. (NASDAQ:LNTH)
Number of Hedge Fund Holders: 44
One-Year Average Price Estimate: $108.38
Massachusetts-based diagnostics imaging products company Lantheus Holdings, Inc. (NASDAQ:LNTH) is one of the most promising healthcare stocks to buy according to analysts. Earlier this month, JMP Securities started covering Lantheus Holdings, Inc. (NASDAQ:LNTH) with a Market Perform rating. The firm said that Lantheus Holdings, Inc. (NASDAQ:LNTH) has expanded to become a “MedTech growth leader with sustainability for years to come.” JMP set a whopping $120 price target on Lantheus Holdings, Inc. (NASDAQ:LNTH). This price target is even better than the average price target of $108 on Lantheus Holdings, Inc. (NASDAQ:LNTH), which already presents a strong upside potential from the current levels.
Hedge funds were also piling into Lantheus Holdings, Inc. (NASDAQ:LNTH) during the fourth quarter of 2022. At the end of the period, 44 hedge funds out of the 943 tracked by Insider Monkey had stakes in Lantheus Holdings, Inc. (NASDAQ:LNTH). This was up from 35 hedge funds in the previous quarter. The most notable hedge fund stakeholder of Lantheus Holdings, Inc. (NASDAQ:LNTH) was Ken Griffin’s Citadel Investment Group which owns a $39 million stake in the company.
Carillon Eagle Small Cap Growth Fund made the following comment about Lantheus Holdings, Inc. (NASDAQ:LNTH) in its Q4 2022 investor letter:
“Lantheus Holdings, Inc. (NASDAQ:LNTH) provides imaging diagnostics, targeted therapeutics, and artificial intelligence solutions used to fight serious medical conditions. Despite another strong quarterly update, the stock came under pressure due in part to investor concerns regarding a possible deceleration of revenue growth in the company’s leading product, Pylarify, as the company seems to have penetrated most of the early adopters of this imaging agent for prostate cancer. Later in the quarter, the company announced a strategic collaboration and exclusive licensing agreement for two late-stage therapeutic products used for the treatment of metastatic prostate cancer and neuroendocrine tumors. We believe approval of these products should help offset any significant declines in revenue growth of Pylarify.”
1. Moderna, Inc. (NASDAQ:MRNA)
Number of Hedge Fund Holders: 52
One-Year Average Price Estimate: $224.50
Moderna, Inc. (NASDAQ:MRNA) ranks 1st in our list of the most promising healthcare stocks to buy according to analysts. Recently, TD Cowen upgraded Moderna, Inc. (NASDAQ:MRNA) to Outperform from Market Perform, citing a favorable catalyst setup ahead.
TD Cowen’s analyst Tyler Van Buren said that Moderna, Inc. (NASDAQ:MRNA)’s expectations for 2023 “are reasonable.” The analyst believes that given the success of Moderna’s COVID-19 vaccines, it’s likely that the firm would be able to produce successful vaccines for other diseases.
At the end of the fourth quarter of 2022, 52 hedge funds tracked by Insider Monkey reported owning stakes in Moderna, Inc. (NASDAQ:MRNA), up from 44 hedge funds having stakes in the company at the end of the prior quarter. This shows hedge fund sentiment for Moderna, Inc. (NASDAQ:MRNA) is positive.
ClearBridge Select Strategy made the following comment about Moderna, Inc. (NASDAQ:MRNA) in its Q4 2022 investor letter:
“Moderna, Inc. (NASDAQ:MRNA) became a household name during the pandemic as one of the first developers of a COVID-19 vaccine. But the stock sold off sharply as COVID momentum, including high expectations for booster shots, began to wear off, causing investors to slash its fiscal 2023 earnings estimates by two-thirds over the last year. We believe those downward revisions clouded the prospects for the company’s fully funded pipeline of platform opportunities, including cancer, RSV and flu. The cash-rich company also recently expanded its partnership with Merck to improve cancer treatments.”
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