5 Most Promising Healthcare Stocks According to Analysts

In this article, we discuss the 5 most promising healthcare stocks according to analysts. To read the detailed overview of the healthcare sector, go directly to the 13 Most Promising Healthcare Stocks According to Analysts.

5. Legend Biotech Corporation (NASDAQ:LEGN)

Average Analyst Price Target Upside: 41.24%

Average Analyst Price Target: $87.64

Legend Biotech Corporation (NASDAQ:LEGN) is a New Jersey-based global, commercial-stage biotechnology company that works on the development, manufacturing, and commercialization of novel therapies for the treatment of various diseases.

On November 20, Legend Biotech Corporation (NASDAQ:LEGN) posted its Q3 GAAP EPS of -$0.17, surpassing the estimates by $0.14. The revenue of $96.01 million grew 250.9% year-over-year.

Baron Funds commented on Legend Biotech Corporation (NASDAQ:LEGN) in its third quarter 2023 investor letter. Here is what it said:

“During the quarter, we also initiated an investment in Legend Biotech Corporation (NASDAQ:LEGN), a biotechnology company dedicated to researching, manufacturing, and distributing cellular therapies for cancers. Legend’s lead product is called Carvykti, which is now in the midst of a commercial launch for the treatment of multiple myeloma patients who have second line or more advanced disease. Demand significantly outstrips supply in this approximately 60,000 patient opportunity, as Carvykti has shown best-in-class clinical response rates and offers patients a potential curative one-and-done treatment for their cancer. Partner Johnson & Johnson has already invested about $1 billion into making this cellular therapy possible and investments are expected to continue as the therapy is scaled to what could be a $10 billion to $20 billion revenue opportunity. Given this is a niche market with limited competition, we expect continued strong financial growth from Legend.”

4. Exact Sciences Corporation (NASDAQ:EXAS)

Average Analyst Price Target Upside: 44.35%

Average Analyst Price Target: $93.25

Exact Sciences Corporation (NASDAQ:EXAS) is a Wisconsin-based company that develops diagnostic tools like tests for the detection of different types of cancers.

Exact Sciences Corporation (NASDAQ:EXAS) was covered by 17 Wall Street analysts, and 15 kept a Buy rating on the stock. The average price target of $93.25 represented an upside of 44.35% at the time of writing on December 18.

According to Insider Monkey’s database, 45 hedge funds had investments in Exact Sciences Corporation (NASDAQ:EXAS)’s stock in the third quarter. The most prominent investor in the company was Catherine D. Wood’s ARK Investment Management, with 6.28 million company shares worth $428.485 million.

Artisan Partners mentioned Exact Sciences Corporation (NASDAQ:EXAS) in its third quarter 2023 investor letter. Here is what it said:

“Among our top detractors were Lattice Semiconductor, Shockwave and Exact Sciences Corporation (NASDAQ:EXAS). Exact Sciences is a leading provider of diagnostic testing and maker of the noninvasive colorectal cancer screening test Cologuard®. The stock was a top performer through the first half of the year but pulled back in Q3. The company reported strong financial results as 31% growth in screening revenues (mostly Cologuard®) drove an overall 19% revenue increase. However, screening revenues fell slightly short of elevated expectations and were not good enough to support the stock’s year-to-date outperformance. We continue to be bullish on Cologuard’s® long-term growth potential; the addressable market expanded significantly in 2021 when the United States Preventive Services Task Force lowered the recommended age for colorectal cancer screenings to 45 from 50. Our research indicates the lowered screening age expands the company’s addressable market by ~18 million unscreened individuals. We also believe meaningful long[1]term opportunities exist as the company develops additional high-value cancer tests.”

3. BeiGene, Ltd. (NASDAQ:BGNE)

Average Analyst Price Target Upside: 46.7%

Average Analyst Price Target: $267.67

BeiGene, Ltd. (NASDAQ:BGNE) is a commercial-stage biopharmaceutical company that produces oncology-related medication.

On November 21, BeiGene, Ltd. (NASDAQ:BGNE) announced that it agreed to pay over $1 billion to get an exclusive global license for a cancer candidate by Ensem Therapeutics. The global R&D head, Lai Wang, commented that the candidate will strengthen the company’s early development pipeline for breast cancer and other solid tumors.

On November 21, BeiGene, Ltd. (NASDAQ:BGNE) reported that it received the FDA’s orphan drug designation for its sonrotoclax drug candidate.

On November 17, BeiGene, Ltd. (NASDAQ:BGNE) announced that its BRUKINSA (zanubrutinib), in combination with obinutuzumab, received marketing authorization from the European Commission (EC), making it the only and first-ever BTK inhibitor approved for follicular lymphoma in the EU.

2. Royalty Pharma plc (NASDAQ:RPRX)

Average Analyst Price Target Upside: 70.93%

Average Analyst Price Target: $46.75

Royalty Pharma plc (NASDAQ:RPRX) is one of the largest buyers of biopharmaceutical royalties of future drugs from biotech companies and academic labs.

On November 13, Royalty Pharma plc (NASDAQ:RPRX) announced that it would fund Teva Pharmaceutical Industries Limited (NYSE:TEVA)’s antipsychotic candidate, Olanzapine LAI’s (TEV-‘749) studies for up to $125 million. After the candidate is commercialized, the company will receive the funding amount back and low to mid-single-digit royalties.

According to Insider Monkey’s database, 31 hedge funds held a stake in Royalty Pharma plc (NASDAQ:RPRX)’s stock in the third quarter. Phill Gross And Robert Atchinson’s Adage Capital Management was the most significant stakeholder in the company. It increased its stake by 14% to 9.84 million shares worth $267 million. 

Over the last three months, 4 Wall Street analysts covered Royalty Pharma plc (NASDAQ:RPRX), and all kept a Buy rating on the stock. At the time of writing on December 18, the average price target of $46.75 had an upside of 70.93%.

1. Sanofi (NASDAQ:SNY)

Average Analyst Price Target Upside: 98.1%

Average Analyst Price Target: $96.16

Sanofi (NASDAQ:SNY) is a pharmaceutical and healthcare company that discovers, develops, manufactures, and markets a range of medicines and vaccines for conditions like cancer, multiple sclerosis, and more.

On December 7, Sanofi (NASDAQ:SNY) said that Sarclisa (isatuximab), a drug for multiple myeloma, met the primary endpoints of a late-stage trial. Dietmar Berger, the company’s global head of development, called the drug a “best-in-class medicine”.

On November 27, Sanofi (NASDAQ:SNY) announced that its drug, Dupixent (dupilumab), jointly developed with Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), yielded positive data from a second Phase 3 trial. The companies plan on submitting the data of trials for chronic obstructive pulmonary disease (COPD) to the U.S. FDA by the end of 2023.

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