Sat Sep 21 11:36:00 UTC 2024: ## Bargain Hunting in Healthcare: Three Undervalued Stocks to Watch

Despite the overall high valuations in the stock market, savvy investors can still find hidden gems. Three Motley Fool contributors have identified three healthcare stocks currently trading at a discount: CRISPR Therapeutics, Gilead Sciences, and Pfizer.

**CRISPR Therapeutics:** This gene-editing specialist, with a market cap of $4.2 billion, boasts the recent approval of Casgevy, a treatment for two blood-related diseases developed in partnership with Vertex Pharmaceuticals. Casgevy carries a hefty price tag of $2.2 million and targets a potential market of over 58,000 patients. CRISPR Therapeutics is expected to generate over $1 billion in sales from Casgevy alone. The company is also pioneering treatments for conditions like type 1 diabetes, further solidifying its position as a future biotech giant.

**Gilead Sciences:** Despite recent slow growth, Gilead Sciences boasts a promising future with its twice-yearly HIV treatment, lenacapavir. This highly effective drug, already approved for multidrug-resistant HIV, is projected to generate $4 billion in peak sales. With a 3.7% dividend yield and a price-to-earnings ratio of 12, Gilead Sciences presents an attractive opportunity for long-term investors seeking a reliable income stream.

**Pfizer:** While Pfizer has struggled in recent years due to declining COVID-19 product sales and upcoming patent expirations for key drugs, the company is actively investing in new products and strategic acquisitions. Its respiratory syncytial virus (RSV) vaccine, Abrysvo, and its 2023 purchase of Seagen, are expected to drive future growth. Trading at a forward-earnings multiple of 10.6, significantly lower than the healthcare sector average, Pfizer also offers a generous dividend yield of 5.65%.

These undervalued healthcare stocks offer compelling opportunities for investors willing to look beyond the current market trends and capitalize on their long-term potential. While investing always comes with risks, these three companies have strong fundamentals and promising future prospects.

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