Recently, we have published a list of 10 best-performing healthcare stocks in 2025. In this article, we will introduce Axsome Therapeutics, Inc. We'll see where (NASDAQ: AXSM) competes against other best-performing healthcare stocks so far. 2025.
Despite the ongoing epidemic surrounding GLP-1 obesity drugs, the healthcare sector was lager last year. On January 3rd, Mizuho Securities American healthcare sector strategist Jared Holtz appeared on CNBC's “Squawk on the Street” on the 2025 healthcare sector outlook. In 2025, “It was a very bad thing, maybe it's a good thing.”
Holtz further said that the healthcare department will present a disaster as there isn't much simple space in the domain. The verticals of other industries, such as technology and finance, are well set. In contrast, healthcare appears to have some variables in place, but most of them are not positive. However, he believed that the MedTech sector would provide a kind of safety net in such a turbulent sector. According to the hedge fund, in a recently published article on the best medical device stocks, we talked about the US medical device sector and the future. This is an excerpt from the article.
“According to McKinsey, the healthcare industry is expected to continue to undergo changes in growth dynamics. Health Services and Technology (HST) revenue pools have a combined annual growth of 8% between 2023 and 2028. It is expected to grow at a rate, and is supported by double-digit growth of the software platform and advanced data and analytics. Sales of innovative technologies such as generation AI to payers and providers will further enhance this growth. We support it.
Speaking about recent trends, including an increase in AI use in the healthcare sector, Holz said the scenario could possibly support software and technology companies more than healthcare companies . The impact on drug development in AI and clinical trials is another important subject of discussion in the health care sector. However, Holtz said the industry has not actually seen the positive impact of AI adoption in the sector. Several clinical trials employing AI have recently failed.
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Therefore, while behind the scenes science and technology appears to be getting better, it does not necessarily lead to better drug development and improved approval rates. He expects that AI use could lead to better outcomes in the future, but Holtz will make the generalization that AI epidemics will lead to better outcomes for Biotech or Pharma, at least in the near future. I think it's too early.
We screened healthcare inventory using Finviz and looked at the performance from the beginning of the year to select the best performance as of February 17, 2025. We also included the number of hedge fund holders for each share as of the third quarter of 2024. Hedge fund sentiment data was sourced from the Insider Monkey database. This list is sorted in ascending order of performances around the year.
Why do we care about what hedge funds do? The reason is simple. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. Quarterly Newsletter's strategy has chosen 14 small and large caps per quarter, returning 275% since May 2014, breaking the benchmark by 150 percentage points (see more here).
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A pharmacist preparing prescriptions for rapidly absorbed multimechanic drugs.
YTD Performance: 55.01%
Number of hedge fund holders: 38
Axsome Therapeutics, Inc. (NASDAQ: AXSM) is a commercial stage biopharmaceutical company that develops and provides treatment for central nervous system conditions with limited treatment options. Its two commercial products and development programs include Aavelity and Sunosi. Auvelity treats major depressive disorder (MDD), and Sunosi is an oral medication for the treatment of excessive sleepiness (EDS) in patients with narcolepsy or obstructive sleep apnea.
Apart from Auvelity and Sunosi, the company's pipeline includes five innovative late stage product candidates and five innovative late stage product candidates under development, along with nine indications for psychiatry and neurology. It is a feature. Axsome Therapeutics, Inc. (NASDAQ: AXSM) late pipeline is positioned to impact more than 150 million patients in the US and supply new drugs to treatment areas. If well developed, this portfolio has the potential to offer peak sales of over $16 billion.
Axsome Therapeutics, Inc. (NASDAQ: AXSM) also has strong financial obligations. In the third quarter of 2024, we first reported product revenues over $100 million. The performance for the quarter was approximately $420 million annually. The company reported these results as commercial therapy in just three-quarters to just one-third of the second year.
Overall, AXSM ranks 8th in the list of healthcare stocks that have performed so far in 2025. Although we acknowledge the potential of AXSM, our belief lies in the belief that AI stocks offer higher returns and hold a greater promise by doing so within a shorter time. Frame. If you're looking for AI stocks that are more promising than AXSM, but are trading under five times the revenue, check out our report on the cheapest AI stocks.
Read next: Buy list of AI companies with market capitalizations under $2 billion 20 AI stocks now
Disclosure: None. This article was originally published on Insider Monkey.
