3 US Healthcare Stocks That Might Be Undervalued 2025

By Patrick Davis

Mar 21, 2025

6 min read

Healthcare is showing strength in a shaky market—discover which overlooked U.S. stocks could potentially offer upside as the sector regains investor attention.

Undervalued Healthcare Stocks Medicus Pharma Nasdaq MDCX

The U.S. markets have experienced declines year-to-date with the S&P 500 down -3.5% and the NASDAQ down more than -8%. The major U.S. stock indices have experienced these declines due to several key factors:​

Trade Tensions and Tariffs

President Donald Trump's administration has implemented significant tariffs on imports from Canada, Mexico, and China, aiming to protect domestic industries. These measures have led to retaliatory tariffs from trade partners, increasing costs for U.S. businesses and consumers and contributing to market volatility. ​

Stagflation Concerns

Investors are increasingly worried about stagflation—a combination of high inflation and sluggish economic growth. A Bank of America survey indicated that 71% of fund managers anticipate stagflation in the global economy within the next year, prompting many to reduce their holdings in U.S. stocks.

Federal Reserve Policies

The Federal Reserve has lowered its economic growth forecast for 2025 to 1.7% from 2.1%, reflecting heightened economic uncertainty. This adjustment has added to investor concerns about the overall health of the economy.

Sector-Specific Challenges

Major technology companies, collectively known as the "Magnificent Seven," including Apple, Microsoft, and Tesla, have faced significant stock sell-offs due to concerns over high valuations and massive investment plans in artificial intelligence infrastructure. This has led investors to diversify into other sectors, further impacting tech stock performance. ​

Against this backdrop, healthcare stocks have demonstrated notable resilience and growth, distinguishing themselves within the broader U.S. stock market. The Health Care Select Sector SPDR Fund (XLV) has risen by 6.3% year-to-date, driven by the resumption of elective surgeries and innovations in drug development. This positive trend reflects a broader recovery in the healthcare sector, which had previously underperformed in 2024 as investors favored high-growth technology stocks. The sector's resurgence is attributed to attractive valuations and ongoing innovations, particularly in specialty drugs and medical technologies. ​

#3 Undervalued Healthcare Stocks

Given healthcare’s critical role in the economy and its potential for sustained growth, let’s look at some potentially undervalued stocks in the sector.

Medicus Pharma Ltd (NASDAQ: MDCX)

Medicus Pharma Ltd. (NASDAQ: MDCX) is a biotech and life sciences company. Its SkinJect patch showed promising clinical clearance in Phase 2 interim data1. Medicus is developing a dissolvable microneedle patch to treat basal cell carcinoma (BCC), the most common skin cancer worldwide. With clinical patents secured through 2035 and a Phase 2 trial underway, Medicus aims to expand its pipeline through acquisitions and partnerships2.

The interim analysis is extremely encouraging, showing complete clinical clearance of BCC lesions in more than 60% of the participants evaluated so far. The study has already randomized over half of the planned 60 participants.

Basal cell carcinoma accounts for nearly five million new cases annually in the U.S., and this number is growing. A non-surgical treatment for basal cell carcinoma is projected to address a $7B+ market opportunity with high unmet medical need.

Medicus Pharma’s SkinJect patch presents a viable and convenient alternative to the current standard of care for BCC, which is Mohs surgery. While Mohs surgery is effective, it is costly, painful and can leave aesthetic concerns.

SkinJect’s skin absorption delivery method directly targets cancer cells, minimizing systemic exposure and side effects. This also means there is the potential to prevent recurrence by stimulating an immunogenic reaction. Therefore, SkinJect could provide a complementary, non-invasive alternative to Mohs surgery.

A small, thumb-sized microneedle patch is applied to the skin over the BCC lesion. The patch is painless and easy to administer in a doctor’s office and can be applied during just three weekly 30-minute visits over 2 weeks. This has the potential to provide a simple and affordable solution to BCC patients seeking better treatment options. With over 5 million BCC cases diagnosed annually in the U.S., Medicus Pharma targets a $2 billion share of the $15 billion North American skin cancer market. Its SkinJect patch has projected development costs of $75–$100 million, far below the $648 million industry average3.

MDCX Stock Rating: The Consensus Analyst Rating Is Buy

Independent analysts, Maxim Group and Brookline Capital Markets have issued price targets of $10 & $124, reflecting potential upside based on clinical progress, expected market share, and regulatory approvals. These estimates assume successful commercialization by 2027 and represent a potential 4x return from the current share price of $2.90 on March 4, 2025. Their optimism stems from the company's ability to price its treatment at around $1,000, making it a cost-effective alternative to Mohs surgery, which typically ranges from $1,800 to $2,500 per procedure. (Note: Analyst targets are based on projections and assumptions that may not materialize.)

See why some investors are watching this biotech company. Uncover the Stock Story

Eyepoint Pharmaceuticals Inc (NASDAQ: EYPT)

EyePoint Pharmaceuticals Inc. (NASDAQ: EYPT) is working on treatments for serious eye diseases. Its main drug candidate, now called DURAVYU™ (previously EYP-1901), is designed to slowly release medication over time to target vascular endothelial growth factor (VEGF)-driven retinal diseases.

EyePoint has initiated two global Phase 3 pivotal trials, LUGANO and LUCIA, for DURAVYU in Wet Age-Related Macular Degeneration. Enrollment in these trials is progressing ahead of expectations, with the LUGANO trial approximately one-third enrolled and the LUCIA trial tracking ahead of schedule. The company anticipates completing enrollment in both trials in the second half of 2025, with topline data expected in 2026.

Meanwhile, The Phase 2 VERONA clinical trial of DURAVYU in

Diabetic Macular Edema has shown positive interim 16-week data, demonstrating meaningful improvements in best-corrected visual acuity (BCVA) and central subfield thickness (CST). Full topline data from this trial is expected in the first quarter of 2025, after which EyePoint plans to engage with regulatory authorities to finalize Phase 3 plans for this indication. ​

EYPT Stock Rating: The Consensus Analyst Rating Is Buy

EyePoint Pharmaceuticals Inc. has a consensus rating of 5.00 in the Bloomberg Terminal, with all 13 analysts recommending a buy and no holds or sells. The 12-month target price from 12 out of 15 analysts is $33.00, compared to the last trading price of $6.10, implying a return potential of 441.0%. Despite strong analyst support, the stock has experienced a significant decline, with a last twelve-month return of -74.0%.

Analysts from firms such as Mizuho Securities, TD Cowen, and Citi have provided target prices ranging from $18.00 to $42.00, with recommendations including buy, outperform, and overweight. The highest target price comes from Jones at $42.00. While the stock's one-year return remains deeply negative at around -73.88%, analysts continue to support its long-term potential.

Voyager Therapeutics Inc (NASDAQ: VYGR)

As of March 21, 2025, Voyager Therapeutics Inc. (NASDAQ: VYGR) is advancing its neurogenetic medicine initiatives, with significant progress in its Alzheimer's disease programs and continued commitment to developing transformative treatments for neurological diseases.

Voyager Therapeutics is making solid progress on two key treatments for Alzheimer’s disease. Its gene therapy candidate, VY1706, showed strong results in animal studies, significantly reducing levels of tau—a protein linked to Alzheimer’s—after just one dose, and was well-tolerated. The company plans to begin human trials in 2026.

Meanwhile, its antibody drug VY7523 has moved into clinical testing in patients with early-stage Alzheimer’s, after passing safety trials in healthy volunteers with no serious side effects. Voyager expects initial brain scan results from this ongoing study in the second half of 2026.

On the ALS front, the company has decided not to move forward with its previous lead drug and is now exploring new approaches. Financially, Voyager ended 2024 with more than $330 million in cash and expects to have enough funding to continue operations through mid-2027, even without counting any future milestone payments from its partners.

VYGR Stock Rating: The Consensus Analyst Rating Is Buy

Voyager Therapeutics Inc. has a consensus rating of 5.00 in Bloomberg Terminal, with all 12 analysts recommending a buy and no holds or sells. The 12-month target price from 10 out of 13 analysts is $16.10, compared to the last trading price of $3.88, indicating a return potential of 314.9%. The stock has experienced a significant decline, with a last twelve-month return of -58.7%.

Analyst recommendations remain strong, with firms such as HC Wainwright, Truist Securities, and Oppenheimer maintaining buy ratings, while others like Baird, Wedbush, and Guggenheim label it as outperform or overweight. Target prices range from $9.00 to $30.00, with the highest valuation coming from HC Wainwright.

The biotech industry thrives on innovation, and some companies stand out for their unique approach to treating high-demand conditions. Interested in emerging biotech developments?

Discover why investors are paying attention to Medicus Pharma

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