In this article, we will take a look at the 5 most undervalued biotech stocks to buy according to analysts. To read our analysis of the recent trends and market activity, you can go to the 11 Most Undervalued Biotech Stocks to Buy According to Analysts.
5. Moderna, Inc. (NASDAQ:MRNA)
Upside Potential as of August 14: 83.25%
PE Ratio (TTM) as of August 14: 8.52
Number of Hedge Fund Holders: 40
Cambridge, Massachusetts-based Moderna, Inc. (NASDAQ:MRNA) is a leading biotechnology company pioneering messenger RNA (mRNA) therapeutics and vaccines. In addition to the commercial stage covid19 vaccine, the clinical pipeline of the company includes therapeutics and vaccines for infectious diseases, immuno-oncology, rare diseases, cardiovascular diseases, and auto-immune diseases.
On August 3, Moderna, Inc. (NASDAQ:MRNA) released its financial results for Q2 2023 and provided business updates. The company expects COVID-19 vaccine sales of $6 billion to $8 billion in 2023, dependent on U.S. vaccination rates. Four infectious disease vaccines being developed by the company are in Phase 3 trials stage including RSV, and neoantigen therapy melanoma, among others.
Moderna, Inc. (NASDAQ:MRNA) ranks #1 on our list of 11 most undervalued biotech stocks to buy according to analysts based on the number of hedge funds that held its shares at the end of Q2 2023. Its shares were owned by 40 leading hedge funds with the total shares held by them valued at nearly $2.0 billion.
4. POINT Biopharma Global Inc. (NASDAQ:PNT)
Upside Potential as of August 14: 84.00%
PE Ratio (TTM) as of August 14: 8.46
Number of Hedge Fund Holders: 25
POINT Biopharma Global Inc. (NASDAQ:PNT) is a globally focused radiopharmaceutical company building a platform for the clinical development and commercialization of radioligands that fight cancer. Its active clinical trials include FRONTIER, a phase 1 trial for PNT2004, a pan-cancer program targeting fibroblast activation protein-α (FAP-α), and SPLASH, the phase 3 trial for PNT2002 for people with metastatic castration resistant prostate cancer.
On July 20, Jefferies assumed coverage of POINT Biopharma Global Inc. (NASDAQ:PNT) shares with a price target of $14 and a ‘Buy’ rating. The price target represents a potential upside of 60.00% based on the share price on August 14.
As of Q2 2023, POINT Biopharma Global Inc. (NASDAQ:PNT) shares were held by 25 hedge funds with the total shares held by these hedge funds valued at $255 million.
3. Zymeworks Inc. (NYSE:ZYME)
Upside Potential as of August 14: 89.81%
PE Ratio (TTM) as of August 14: 2.86
Number of Hedge Fund Holders: 22
Founded in 2003, Vancouver, Canada-based Zymeworks Inc. (NYSE:ZYME) is a global biotechnology company focused on the discovery, development, and commercialization of novel, multifunctional biotherapeutics targeting difficult-to-treat cancers and other diseases.
On August 10, Zymeworks Inc. (NYSE:ZYME) released its financial results and operational update for Q2 2023. It has engineered and developed zanidatamab, a HER2-targeted bispecific antibody using its proprietary Azymetric™ technology. Zanidatamab is currently being evaluated in global Phase 1, Phase 2, and Phase 3 clinical trials, including certain ongoing pivotal clinical trials as a treatment for patients with HER2-expressing cancers.
Zymeworks Inc. (NYSE:ZYME) has the lowest TTM PE ratio of 2.86 on our list of 11 most undervalued biotech stocks to buy according to analysts. The second lowest PE ratio on our list belongs to BioNTech SE (NASDAQ:BNTX) at 3.77.
2. Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT)
Upside Potential as of August 14: 109.73%
PE Ratio (TTM) as of August 14: 6.62
Number of Hedge Fund Holders: 17
San Diego, California-based Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT) is a global late stage-clinical messenger RNA medicines company focused on the development of infectious disease vaccines within liver and respiratory rare diseases.
On August 14, Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT) announced that its manufacturing joint venture in Japan to support the production of mRNA vaccines and therapeutics has been awarded $115 million in two separate grants from the Japanese government. The company owns 49% equity stake in the joint venture.
As of June 30, 2023, Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT) shares were owned by 17 prominent hedge funds with the total shares held by these hedge funds valued at $102 million. Catherine Wood’s ARK Investment Management was the largest hedge fund shareholder with ownership of 1.9 million shares valued at $55 million.
1. Cullinan Oncology, Inc. (NASDAQ:CGEM)
Upside Potential as of August 14: 146.34%
PE Ratio (TTM) as of August 14: 8.87
Number of Hedge Fund Holders: 22
Cambridge, Massachusetts-based Cullinan Oncology, Inc. (NASDAQ:CGEM) is a biopharmaceutical company focused on modality-agnostic targeted oncology therapies.
On August 11, HC Wainwright & Co. lowered the price target on Cullinan Oncology, Inc. (NASDAQ:CGEM) shares to $34 from $39 and maintained a ‘Buy’ rating for the shares. The price target represents an upside potential of 202.44% based on the share price on August 14.
Cullinan Oncology, Inc. (NASDAQ:CGEM) ranks #1 on our list of 11 most undervalued biotech stocks to buy according to analysts based on its TTM PE ratio of 8.87 and the highest upside potential on its share price according to the average analyst price targets. The shares of the company were also widely owned by hedge funds, as of Q2 2023, with 22 prominent hedge funds tracked by Insider Monkey holding its shares valued at $192 million.
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