In this article, we will take a look at the 10 best medical stocks under $10. You can skip our detailed analysis of the healthcare industry, and go directly to the 5 Best Medical Stocks Under $10.
While the COVID-19 virus spread worldwide, the medical industry proved its resilience and capacity to bring life-saving products to market promptly. Global healthcare spending is expected to rise at a compound annual growth rate of 3.9% between 2020 and 2024, based on insights from Deloitte. The healthcare sector is set to expand in the next coming years as the world population ages.
Medical companies such as Merck & Co., Inc (NYSE: MRK) and AstraZeneca PLC (NASDAQ: AZN) set new highs in R&D spending in 2020, with $13.6 billion and $5.9 billion, respectively, intending to develop life-saving medications, vaccines, and medical technologies. Merck & Co., Inc (NYSE: MRK) and AstraZeneca PLC (NASDAQ: AZN) belong to the top 5 pharmaceutical companies with the highest R&D spending. MRK stock has gained 4.3% in the last three months, and shares of AZN increased 12%.
Which Medical Stocks to Invest In?
According to McKinsey data, high-growth sectors in the healthcare industry will remain popular, including telemedicine, software and platforms, specialty pharmacy, and home health, which is projected to grow by more than 10% over the next five years. In the first quarter of 2021, New York-based telemedicine company Teladoc Health, Inc.'s (NYSE: TDOC) total virtual consultations and sessions provided grew 109% year over year to 4.2 million. The company's first-quarter revenue increased 151% to $454 million, beating estimates by $1.8 million. On July 8th, Piper Sandler analyst Sean Wieland restated an Overweight rating on Teladoc Health, Inc. (NYSE: TDOC) with a price target of $291 per share. The analyst is optimistic about the upcoming launch of employer-sponsored behavioral health app myStrength Complete. The stock has gained 2.11% in the last five days.
There are bargains to be discovered in practically every market, and the medical sector is no different. One cheap medical stock that analysts have a bullish sentiment on is generic drugmaker Amneal Pharmaceuticals, Inc. (NYSE: AMRX). In April, Guggenheim analyst Dana Flanders maintained a Buy rating on Amneal Pharmaceuticals, Inc. (NYSE: AMRX) and increased the firm's price target to $8 per share from $6.50 previously. In June, the FDA agreed to review the company's marketing application for Bevacizumabor, a metastatic colorectal cancer medication. Shares of Amneal Pharmaceuticals, Inc. (NYSE: AMRX) grew 12.1% in the last five days after the FDA approved the generic version of the ophthalmic product TobraDex.
10 Best Medical Stocks Under $10
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Investing is becoming difficult by the day, even for smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn't keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey's research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and May 29th, 2021 our monthly newsletter's stock picks returned 206.8%, vs 91.0% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Let's now look at the 10 best medical stocks under $10. We selected the stocks based on their fundamentals and prospects for growth based on key business characteristics. We also took into account analysts' ratings and hedge fund sentiment to pick out the stocks most popular among the hedge funds tracked by Insider Monkey. The stocks are ranked from the highest to the lowest share price.
Number of Hedge Fund Holders: 8 Stock Price as of July 23rd: $9.36
We start our list of the best medical stocks under $10 with Apyx Medical Corporation (NASDAQ: APYX). The Florida-based company creates advanced energy-powered cosmetic and surgical instruments. Apyx Medical Corporation (NASDAQ: APYX) markets electrosurgical generators and disposable handpiece subassemblies.
In May, Piper Sandler analyst Matt O'Brien maintained an Overweight rating on Apyx Medical Corporation (NASDAQ: APYX) and a price target of $12 per share, stating that the medical device firm has vast potential in the increasing market of electrosurgical generators and handpieces.
Apyx Medical Corporation (NASDAQ: APYX) filed a 510k pre-market notification with the FDA in June, seeking a specific clinical indication for the use of Renuvion, a minimally invasive skin resurfacing treatment. Shares of Apyx Medical Corporation (NASDAQ: APYX) increased 30% year to date.
The company has a market cap of $321 million. In the first quarter of 2021, Apyx Medical Corporation (NASDAQ: APYX) had met the estimated EPS of -$0.14. The company's revenue came in the first quarter came in at $8.64 million, up 72.9% year over year and beating estimates by $0.70 million.
By the end of the first quarter of 2021, 8 hedge funds out of the 866 tracked by Insider Monkey held stakes in Apyx Medical Corporation (NASDAQ: APYX) worth roughly $51.4 million, up from the 6 hedge funds in the previous quarter with stakes worth approximately $37.2 million.
Just like Merck & Co., Inc (NYSE: MRK), AstraZeneca PLC (NASDAQ: AZN), Teladoc Health, Inc. (NYSE: TDOC), and Amneal Pharmaceuticals, Inc. (NYSE: AMRX), Apyx Medical Corporation (NASDAQ: APYX) is one of the best medical stocks to invest in, according to market analysts.
Number of Hedge Fund Holders: N/A Stock Price as of July 23rd: $9.09
Nautilus Biotechnology, Inc. (NASDAQ: NAUT) ranks 9th on the 10 best medical stocks under $10. The Seattle-based biotech firm utilizes biochemistry and computer science to investigate human proteomes. The company also operates in drug development and biomedical research. Jeff Bezos' Bezos Expedition was among the VCs who invested in Nautilus Biotechnology, Inc. (NASDAQ: NAUT) in its $76 million Series B round last year, which went public in June 2021.
Jefferies analyst Brandon Couillard initiated Nautilus Biotechnology, Inc. (NASDAQ: NAUT) with a Buy rating and a $13 price target on July 13th, stating that the biotech firm's protein machine learning analysis can potentially lead to the new era of predictive medicine.
The company has a market cap of $1.13 billion. At the end of the first quarter of 2021, Nautilus Biotechnology, Inc. (NASDAQ: NAUT) had total assets of $150 million. Just like Merck & Co., Inc (NYSE: MRK), AstraZeneca PLC (NASDAQ: AZN), Teladoc Health, Inc. (NYSE: TDOC), and Amneal Pharmaceuticals, Inc. (NYSE: AMRX), Nautilus Biotechnology, Inc. (NASDAQ: NAUT) is one of the best medical stocks to invest in, according to market analysts.
Number of Hedge Fund Holders: N/A Stock Price as of July 23rd: $8.34
ATI Physical Therapy, Inc. (NYSE: ATIP) ranks 8th on the 10 best medical stocks under $10. The Illinois-based medical company provides outpatient and at-home physical therapy services in the US. ATI Physical Therapy, Inc. (NYSE: ATIP) has 882 clinics across the United States and 4.5 million yearly patient visits.
On July 15th, Jefferies analyst Stephanie Wissink initiated ATI Physical Therapy, Inc. (NYSE: ATIP) with a Buy rating with a price target of $12 per share. According to the analyst, the physical therapy company has a bright future ahead of it, as it sets a goal of more than 10% of annual growth over the next few years, with a total of 465 clinics anticipated by 2025. ATI Physical Therapy, Inc. (NYSE: ATIP)was also given a Buy rating and a price target of $11 per share by Citi analyst Ralph Giacobbe. The analyst commented that the company is currently undervalued compared to its most prominent competitors.
The company has a market cap of $1.73 billion. In the first quarter of 2021, ATI Physical Therapy, Inc. (NYSE: ATIP) had an EPS of $0.90, beating estimates by $0.95. The company's first-quarter revenue came in at $149.1 million. At the end of the quarter, ATI Physical Therapy, Inc. (NYSE: ATIP) had cash of $97.7 million. The stock has gained 2.1% in the last five days.
Just like Merck & Co., Inc (NYSE: MRK), AstraZeneca PLC (NASDAQ: AZN), Teladoc Health, Inc. (NYSE: TDOC), and Amneal Pharmaceuticals, Inc. (NYSE: AMRX), ATI Physical Therapy, Inc. (NYSE: ATIP) is one of the best medical stocks to buy, according to market analysts.
Number of Hedge Fund Holders: 11 Stock Price as of July 23rd: $8.17
Cabaletta Bio, Inc. (NASDAQ: CABA) ranks 7th on the 10 best medical stocks under $10. The Philadelphia-based biopharmaceutical company makes T-cell therapies for rare autoimmune diseases. The company was founded in 2017 and was formerly known as Tycho Therapeutics, Inc.
Cabaletta Bio, Inc. (NASDAQ: CABA) was given a Buy rating and a $22 price target by Mizuho analyst Vamil Divan on June 29th. With its T-cell therapy DSG3-CAART, which combats the rare skin autoimmune illness Pemphigus Vulgaris, the analyst sees the biopharmaceutical company's potential in the market. The stock has gained 9.22% in the previous month.
The company has a market cap of $204 million. In the first quarter of 2021, Cabaletta Bio, Inc. (NASDAQ: CABA) had an EPS of -$0.41, beating estimates by $0.08. At the end of the first quarter, Cabaletta Bio, Inc. (NASDAQ: CABA) had zero debt and had cash, cash equivalents, and investments totaled $102.0 million.
At the end of Q1 2021, 11 hedge funds tracked by Insider Monkey have Cabaletta Bio, Inc. (NASDAQ: CABA), worth $92 million. Adage Capital Management is the company's largest shareholder, with over 3 million shares worth $33,762,000.
Just like Merck & Co., Inc (NYSE: MRK), AstraZeneca PLC (NASDAQ: AZN), Teladoc Health, Inc. (NYSE: TDOC), and Amneal Pharmaceuticals, Inc. (NYSE: AMRX), Cabaletta Bio, Inc. (NASDAQ: CABA) is one of the best medical stocks to buy, according to market analysts.
Number of Hedge Fund Holders: 12 Stock Price as of July 23rd: $7.90
Lava Therapeutics B.V. (NASDAQ: LVTX) ranks 6th on the list of 10 best medical stocks under $10. The biotech company headquartered in the Netherlands develops T cell-based cancer therapies. In 2020, Johnson & Johnson's (NYSE: JNJ) Janssen Biotech teamed up with Lava Therapeutics B.V. (NASDAQ: LVTX) to develop anti-cancer therapy based on delta gamma T cells.
SVB Leerink analyst Daina Graybosch initiated coverage of Lava Therapeutics B.V. (NASDAQ: LVTX) in April, with an Outperform rating and a $26 price target, stating that the biotech firm's initiatives could be advanced and high risk but that it has the cutting-edge technology to lead T cell therapy development.
On July 13th, Lava Therapeutics B.V. (NASDAQ: LVTX) has announced the initial-in-human Phase 1/2a clinical trial of LAVA-051 to determine the cancer therapy's anti-tumor effectiveness in patients with relapsed acute myeloid leukemia, chronic lymphocytic leukemia, and multiple myeloma. The dosing will be initially tested in Europe, where the company's Clinical Trial Application (CTA) has already gained regulatory approval.
The company has a market cap of $198 million. The company's revenue in the first quarter of 2021 came at $1.06 million (€0.9 million). As of December 31st, 2020, Lava Therapeutics B.V. (NASDAQ: LVTX) had cash and cash equivalents of $159 million (€134.7 million).
As of Q1 2021, 18 hedge funds tracked by Insider Monkey have positions in Lava Therapeutics B.V. (NASDAQ: LVTX), worth $62.4 million. Just like Merck & Co., Inc (NYSE: MRK), AstraZeneca PLC (NASDAQ: AZN), Teladoc Health, Inc. (NYSE: TDOC), and Amneal Pharmaceuticals, Inc. (NYSE: AMRX), Lava Therapeutics B.V. (NASDAQ: LVTX) is one of the best medical stocks to buy, according to market analysts.
