Interest in Harmony Biosciences Holdings (HRMY) has picked up as investors focus on its revenue and earnings growth, its solid financial position, and chart patterns that some traders view as supportive for potential future price strength.

At a share price of US$37.36, Harmony Biosciences has a 90 day share price return of 26.05%. However, the 1 year total shareholder return of 2.33% decline and 3 year total shareholder return of 21.78% decline suggest longer term momentum has been weaker even as recent trading interest has improved.

If this kind of move in a specialist neurology player has your attention, it could be a good moment to scan other healthcare stocks that might fit your watchlist next.

So, with Harmony Biosciences showing double digit revenue and net income growth alongside a value score of 5 and a share price of US$37.36 that sits below some analysts’ targets, is this a mispriced opportunity, or is the market already baking in future growth?

Most Popular Narrative: 19.6% Undervalued

With Harmony Biosciences closing at $37.36 versus a narrative fair value of $46.45, the widely followed view frames the stock as undervalued and rooted in long term sleep and rare disease opportunities.

The large and growing patient populations affected by sleep disorders and rare neurodevelopmental conditions, driven by demographic aging and increased recognition/diagnosis, are expanding Harmony's total addressable market, supporting sustained long-term revenue growth for both existing and pipeline products.

Harmony is positioned to capture new sources of revenue and reduce product concentration risk through near-term late-stage pipeline catalysts, including potential first-to-market launches for ZYN002 in Fragile X syndrome and additional pitolisant formulations (HD and GR), each aimed at high-unmet-need, orphan indications.

To understand what kind of revenue ramp and margin profile would need to occur for that fair value to be supported, and how earnings expectations feed into the implied multiple on 2028 profits, the full narrative lays out the numbers and the debate behind them.

Result: Fair Value of $46.45 (UNDERVALUED)

However, the story can change quickly if WAKIX faces faster than expected competitive pressure, or if key late stage programs like ZYN002 encounter regulatory setbacks.

Build Your Own Harmony Biosciences Holdings Narrative

If you see the numbers differently or just prefer to test your own assumptions against the data, you can build a tailored view in minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Harmony Biosciences Holdings.

Looking for more investment ideas?

If Harmony has you thinking harder about where you put your cash next, do not stop here. Your next watchlist candidate could be one smart filter away.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.