The healthcare sector is often overlooked by investors, but it's time to shine a spotlight on some exciting opportunities. With interest rates on the rise, healthcare stocks have taken a backseat, but their potential is undeniable.
As investors flock to AI-related stocks at unprecedented highs, these four healthcare stocks present a unique chance to capitalize on undervalued companies. Healthcare stocks have faced challenges since the interest rate hike began in 2022, with rising yields diverting capital from speculative biotech and drug development ventures. Despite this, many promising companies now trade at a fraction of their previous highs, creating an attractive entry point for investors.
Here's where it gets interesting: several healthcare innovators are on the cusp of significant milestones, yet their share prices don't reflect their true potential. Let's dive into these four healthcare stocks that deserve a second look.
Commercial Momentum Building
Crispr Therapeutics and Vertex Pharmaceuticals have developed Casgevy, a groundbreaking gene-editing treatment approved for sickle cell disease and beta-thalassemia. Vertex reported impressive $30 million in Casgevy sales in Q2 2025, a significant increase from previous quarters, indicating the drug's growing market acceptance. Crispr, through its partnership with Vertex, receives 40% of the program's profits.
By mid-2025, 75 hospitals and clinics worldwide were authorized to administer Casgevy, and approximately 115 patients had initiated the treatment process. As more centers gain experience, patient numbers and sales are expected to surge through 2025 and 2026. Crispr is also working on several new treatments it fully owns, such as CTX112, a cell-based therapy in early testing for cancer and immune diseases. Positive results from CTX112 or other key pipeline candidates in late 2025 could provide a significant boost to the stock.
Late-Stage Catalysts Approaching
Intellia Therapeutics is making significant strides with its CRISPR gene-editing programs. It has recently completed enrollment in its Phase 3 study for hereditary angioedema, a rare disease causing sudden swelling attacks, using the treatment lonvoguran ziclomeran (NTLA-2002). Topline results are anticipated in the first half of 2026, with a regulatory filing planned later that year. Intellia is also advancing its program for ATTR amyloidosis, a disease characterized by abnormal protein buildup damaging the heart and nerves, using the treatment nex-z (NTLA-2001). A pivotal trial is underway, and earlier testing showed that a single dose can reduce the TTR protein by approximately 91% in many patients, with data indicating sustained reductions over time.
If both programs succeed, Intellia could become a pioneer in single-dose, in vivo CRISPR therapy, a potential game-changer that could reshape investor expectations and the valuation of gene-editing companies.
Platform Plays with Pharma Validation
Recursion Pharmaceuticals operates a drug discovery platform powered by AI and backed by prominent pharma partnerships, including Sanofi, Roche, and Bayer. In its latest results, the company generated $19.2 million in revenue, primarily from collaborations. Several clinical trial updates are anticipated later in 2025. If these trials demonstrate the effectiveness of its AI-discovered drugs in patients, the market may begin to value its individual programs more favorably, unlocking significant upside potential for the stock.
Viking Therapeutics is advancing VK2735, a dual GLP-1/GIP agonist, through late-stage development for obesity. Its mid-stage study showed an average weight loss of up to 14.7% after 13 weeks with the injectable version, and it is now being tested in a large late-stage trial across obesity and type 2 diabetes populations. While the stock declined in August 2025 due to higher dropout rates caused by gastrointestinal side effects from the oral formulation, these findings are specific to the administration method and not an inherent issue with the compound.
With a slower titration schedule, tolerability could improve significantly. Both the injectable and oral versions remain integral to Viking's obesity strategy, positioning the company to compete in a market projected to exceed $100 billion in annual sales.
These four healthcare stocks offer a compelling investment opportunity, especially with their current valuations. As the healthcare sector continues to innovate, these companies are poised to make significant strides. Will you join the journey? Let's discuss in the comments!
