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Raymond James Swaps Healthcare Top Picks for October, Adds UnitedHealth, Xencor, and Calyxt
Summary
Investment firm Raymond James has revised its Healthcare Top Picks list for October, adding UnitedHealth, Xencor, and Calyxt while removing three others. The firm cited upcoming catalysts and attractive valuations as key drivers for the changes.
Raymond James has updated its monthly Healthcare Top Picks list, introducing three new companies ahead of significant upcoming catalysts. The investment firm added UnitedHealth Group (UNH), Xencor Inc. (XNCR), and Calyxt Inc. (CLYM) to its October selection, according to a note published Tuesday.
Key Changes to the List
The update involves a direct swap of three stocks on the curated list. Relay Therapeutics (RLAY), Tyra Biosciences, and Oscar Health (OSCR) were removed to make way for the new additions.
Raymond James noted that while it maintains positive ratings on the removed companies, such as a Strong Buy on Relay Therapeutics and an Outperform rating on Oscar Health, it views the new additions as having more actionable, near-term catalysts suitable for the monthly nature of the list.
Rationale for New Additions
AdThe firm provided specific reasons for each new selection, focusing on upcoming earnings and clinical data presentations.
- UnitedHealth Group (UNH): The insurance giant was added ahead of its third-quarter earnings report in mid-October. Raymond James believes a recent pullback in the stock, tied to concerns over Medicare Advantage Star Ratings and midterm elections, has created an attractive entry point before what it anticipates will be a strong quarterly performance.
- Xencor Inc. (XNCR): The firm highlighted an expected dataset presentation at the European Society for Medical Oncology (ESMO) conference at the end of October. Raymond James sees potential for near-term upside in Xencor shares based on a positive readout for its drug candidate XmAb819 in treating clear cell renal cell carcinoma.
- Calyxt Inc. (CLYM): Analysts pointed to an "increasingly derisked setup" for Calyxt's two lead assets. The company is expected to present additional data in the fourth quarter of 2026 for its drug budoprutug and share initial Phase 2 data for CLYM116 next year. The firm also noted that budoprutug's potential for subcutaneous injection could differentiate it from competitors.
Market Context
This rotation in top picks reflects a strategic focus on companies with clear, impending events that could influence stock performance in the short term. For investors, such lists from major investment firms provide insight into how analysts are weighing catalysts, from clinical trial results in the biotech sector to earnings and macro-political factors in the managed care space.
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