1. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)
Forward P/E: 5.6
Earnings Growth: 7.00%
Number of Hedge Fund Holders: 44
Analyst Upside Potential: 59.99%
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is the most undervalued growth stock to buy according to Wall Street analysts. 19 analysts have a strong Buy rating for the stock with their median price target representing a 60% upside from the current levels.
It is a biopharmaceutical company that focuses on developing treatments for neurological diseases and oncology. While the company already has a portfolio of top-performing medicines in the related fields, it recently got good news from the FDA. The FDA granted priority review for Zanidatamab, which is said to hit the market in around 2 months.
As of now, Xywav, Epidiolex/Epidyolex, and Rylaze/Enrylaze are fueling growth and driving the company’s revenue. The three medicines combined led the total revenue to grow 15% year-over-year during the second quarter of 2024. Moreover, the oncology department of Jazz Pharmaceuticals plc (NASDAQ:JAZZ) was also not behind with a 10% increase during the same time.
The company has an already existing portfolio of more than 9 FDA-approved products curing patients with neurological disorders and in the oncology department. Not only this, it is constantly researching and lining up its pipeline for further approvals making it well-positioned for future growth.
Aristotle Capital Global Equity Strategy made the following comment about Jazz Pharmaceuticals plc (NASDAQ:JAZZ) in its Q3 2023 investor letter:
“During the quarter, we sold our position in Magna International and invested in a new position, Jazz Pharmaceuticals plc (NASDAQ:JAZZ). Founded in 2003, Jazz Pharmaceuticals is a global biopharmaceutical company headquartered in Ireland. The drugmaker’s portfolio of nine approved products focuses on conditions with limited therapeutic treatments in neuroscience (~75% of 2022 revenue) and oncology (~25%).
Jazz’s drug Xyrem was added to its portfolio in 2005 and was approved for use in patients with narcolepsy. The drug’s strong efficacy propelled it to be the standard of care for this incurable sleep condition and has achieved wide adoption for the treatment of excessive daytime sleepiness and cataplexy (episodes of loss of muscle control).
Xyrem’s patent exclusivity ended in January 2023, and authorized generic versions of the product have entered the market. To prepare for the patent cliff, the company developed Xywav, a lower‐sodium version of Xyrem, which is touted for its potentially better heart safety. The drug has received FDA approval for the treatment of narcolepsy and idiopathic hypersomnia and has orphan drug exclusivity through 2027…” (Click here to read the full text)
While we acknowledge the potential of Jazz Pharmaceuticals plc (NASDAQ:JAZZ) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for a promising AI stock that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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