3 Undervalued Healthcare Stocks to Buy Now for Long-Term Growth

Wednesday, Aug 20, 2025 8:20 am ET1min read
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Healthcare stocks are undervalued due to government policies, making them a good long-term investment. Three undervalued healthcare stocks to consider are [stock names]. Despite market fluctuations, these stocks have the potential to rebound and provide strong returns in the long term.

Healthcare stocks have been underperforming in recent months due to various government policies and market fluctuations. However, this presents an opportunity for investors seeking long-term growth. Three undervalued healthcare stocks that show promise are Eli Lilly, CorMedix, and Johnson & Johnson. Despite recent challenges, these companies have strong fundamentals and growth potential.

Eli Lilly (NYSE:LLY) has been one of the most undervalued healthcare stocks, with analysts projecting a 30.8% annual earnings growth and a PEG ratio under 1, indicating undervaluation relative to its long-term growth potential [2]. Eli Lilly's strong exposure to the GLP-1 growth story and leadership in the booming weight loss drugs market suggest a potential rebound, despite recent setbacks in clinical trials.

CorMedix Inc. (NASDAQ:CRMD) has also been undervalued, with its acquisition of Melinta Therapeutics marking a significant stride in its growth strategy [1]. The company's strong financial guidance for 2025 indicates a promising growth trajectory, with projections for revenue between $305 million and $330 million and fully synergized EBITDA ranging from $150 million to $170 million.

Johnson & Johnson (NYSE:JNJ) is another undervalued healthcare stock, facing challenges such as legal setbacks and regulatory hurdles. However, its strong brand portfolio and diversified revenue streams, including its weight loss drug Wegovy, continue to provide stability and growth opportunities.

While healthcare stocks have underperformed over the past year, these three companies present undervalued investment opportunities. Investors should consider these stocks for long-term growth potential, despite the current market fluctuations.

References:
[1] https://za.investing.com/news/swot-analysis/cormedixs-swot-analysis-acquisition-boosts-biopharmaceutical-stocks-outlook-93CH-3833926
[2] https://ih.advfn.com/market-news/article/14266/eli-lilly-shares-drop-over-12-premarket-as-weight-loss-pill-study-disappoints-despite-strong-earnings

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