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In this article, we look at the top 14 medical stocks that are best for hedge fund investing. If you would like to skip the overview of the medical and healthcare industry, please see below. 5 best medical stocks to invest in, according to hedge funds.
The medical and healthcare industry is one of the largest in the world. The medical industry guarantees a steady demand for its products and services simply by the fact that humans are biological organisms. This means that medical stocks like Pfizer Inc. (NYSE:PFE) and hospital stocks like Tenet Healthcare Corporation (NYSE:THC) are among the world’s largest stocks. This also means that these stocks may take advantage of trends that can emerge suddenly due to crises such as the coronavirus pandemic. The fast pace of the 21st century news cycle means that public attention can shift quickly, but in the wake of the rapid spread of the pandemic in 2020, investors were anxious and looking into their crystal balls. I would have held out my arms and legs for a poke. We tell them which healthcare stocks are the right choices to help them navigate global healthcare prices.
As time has shown, medical stocks like Pfizer Inc. and Cambridge, Mass.-based biotech company Moderna Inc. (NASDAQ:MRNA) have been some of the hottest stocks due to the impact of vaccines. Over the course of about a year and a half, from December 2019 to September 2021, Moderna stock rose a whopping 429% on the stock market. This result means that even a small bet just With the right timing, investors from all walks of life can benefit greatly. Pfizer’s stock rose an even more modest 50% during the same period. But Pfizer’s current market cap of $155 billion is more than four times Moderna’s, so the difference in profits is understandable.
Additionally, another key difference between Moderna and Pfizer also applies to a broader category of medical stocks, including high-growth sectors such as biotech and somewhat more stable sectors such as medical device manufacturers and hospital operators. . Pfizer, like its peers Eli Lilly & Company (NYSE:LLY), Johnson & Johnson (NYSE:JNJ), and Merck & Company (NYSE:MRK), adheres to the classic principles of business management. One thing: diversification. These medical stocks not only serve the market for simple drugs that can be produced in large quantities, such as blood thinners, but also medical products that require huge capital expenditures and research capabilities, such as biotechnology and genetic engineering. It has the luxury of having a sizeable balance sheet that allows it to participate in industry segments as well. .
However, with the rise of genetic engineering, this field of medicine is benefiting from smaller companies that can focus on being able to change the very “code” of the human body. At the same time, while the glitzy and glamorous nature of high-tech fields such as artificial intelligence means that much of the public and media attention remains focused on them, medical stocks related to the genomics industry have also made strides in recent months. are doing. If you’re interested, check out 12 Best Genomics Stocks to Buy Now to learn more about these stocks.
So, what is so important about genomics? Medical stocks Vertex Pharmaceuticals, Inc. (NASDAQ: VRTX) and BridgeBio Pharma, Inc. (NASDAQ: BBIO) are A major victory was achieved in December 2023 when the drug approved the first treatment for sickle cell disease. . According to Yale Medicine, Vertex’s Casgevy essentially “slices” a patient’s DNA to increase their chances of fighting sickle cell disease, while BBIO’s Lyfgenia introduces substances that improve blood health. That’s what it means.
But mega-medical stocks Eli Lilly and Novo Nordisk A/S (NYSE:NVO) have also been touted recently as their drugs finally offer an over-the-counter weight-loss solution. As a result, Eli Lilly’s stock price is skyrocketing. How Up 380% since 2020, Novo Nordisk’s share price is up 275% over the same period. Weight-loss drugs are no longer the future, and investors are pricing that possibility into medical stocks as well. For more information, see 11 Best Weight Loss Stocks to Invest in.
With these details in mind, let’s take a look at some of the top healthcare stocks. Stocks to watch include Thermo Fisher Scientific, Inc. (NYSE:TMO), Danaher Corporation (NYSE:DHR), and United Health Group, Inc. (NYSE:UNH).
A veterinarian performing a physical examination of a four-legged patient at a veterinary hospital. It highlights the company’s efforts in veterinary medicine.
our methodology
To create our list of the best medical stocks to buy, we ranked the 40 most valuable medical stocks based on the number of hedge funds that purchased the stock as of the end of Q4 2023. . Out of these, we selected excellent stocks as medical stocks.
For these best medical stocks, we tapped hedge fund sentiment. The top 10 consensus stocks selected by hedge funds have outperformed the S&P 500 index by more than 140 percentage points over the past 10 years (Please see here for the detail). That’s why we pay close attention to this often ignored metric.
14 best medical stocks for investment selected by hedge funds
14. Boston Scientific Corporation (NYSE:BSX)
Number of hedge fund shareholders in Q4 2023: 71
Boston Scientific Corporation (NYSE:BSX) is a medical device company with products that help in disease diagnosis, disease management, and imaging. The stock has an average rating of “Strong Buy” and an average analyst price target of $70.82.
As of the end of Q4 2023, 71 of the 933 hedge funds profiled by Insider Monkey held Boston Scientific Corporation (NYSE:BSX) stock. Ken Griffin’s Citadel Investment Group has become Boston Scientific Corporation’s (NYSE:BSX) largest shareholder through a $519 million investment.
13. HCA Healthcare Co., Ltd. (NYSE:HCA)
Number of hedge fund shareholders in Q4 2023: 72
HCA Healthcare, Inc. (NYSE:HCA) owns and operates hospitals throughout the United States, serving as the customer end of the healthcare supply chain. He has recently exceeded analysts’ EPS estimates for three consecutive quarters, and is in good financial shape. The most recent of his four quarters. That means the stock has an average rating of “Strong Buy,” and analysts have an average price target of $324.
72 out of 933 hedge funds in Insider Monkey’s database bought and owned shares in HCA Healthcare, Inc. (NYSE:HCA) during the fourth quarter of 2023. Jean-Marie Eveillard’s First Eagle Investment Management was the largest investor in the database, with $1.2 billion worth of stock.
HCA Healthcare, Inc. (NYSE:HCA) ranks among the best medical stocks to buy, along with Danaher Corporation (NYSE:DHR), Thermo Fisher Scientific, Inc. (NYSE:TMO), and UnitedHealth Group, Inc. (NYSE:UNH). Added to the list.
12. AbbVie Inc. (NYSE:ABBV)
Number of hedge fund shareholders in Q4 2023: 76
AbbVie Inc. (NYSE:ABBV) is a healthcare and pharmaceutical company headquartered in Chicago, Illinois. The company scored a victory in February 2024 when it received approval to sell its Parkinson’s disease drug in Canada.
As of the end of December 2023, 76 of the 910 hedge funds tracked by Insider Monkey had invested in AbbVie Inc. (NYSE:ABBV). Paul Marshall and Ian Weiss’ Marshall Weiss LLP was the largest investor with 3.1 million shares worth $491 million.
11. Cigna Group (NYSE:CI)
Number of hedge fund shareholders in Q4 2023: 76
Cigna Group (NYSE:CI) is a provider of healthcare plans, which adds to our list of best healthcare stocks in the financial sector. The company is also one of the strongest stocks on our list when it comes to dividends, as it announced a February 2024 dividend of $1.40 per share and a yield of 1.50%.
Insider Monkey scanned the December 2023 quarter stock holdings of 933 hedge funds’ portfolios and found that 76 had invested in the company. Cigna Group (NYSE:CI)’s largest shareholder is Larry Robbins’ Glenview Capital, with a stake worth $641 million.
10. Pfizer Inc. (NYSE:PFE)
Number of hedge fund shareholders in Q4 2023: 79
Pfizer Inc. (NYSE:PFE) is one of the world’s largest pharmaceutical companies. Earlier this month, the company extended its public trust by partnering with the American Cancer Association (ACA) as part of an impressive $15 million initiative to raise awareness about cancer screening.
Insider Monkey examined the portfolios of 933 hedge funds for investments in the fourth quarter of 2023 and found that 79 are investors in the company. Of these, Pfizer Inc. (NYSE:PFE)’s largest shareholder is DE Shaw, with an investment of $418 million.
9. Johnson & Johnson (NYSE:JNJ)
Number of hedge fund shareholders in Q4 2023: 81
Johnson & Johnson (NYSE:JNJ) is America’s leading personal wellness and healthcare company with a storied history. The company is having a rocky February 2024, with its CEO being pursued by U.S. senators over the sensitive issue of high drug prices for working-class Americans.
Of the 933 hedge funds surveyed in Insider Monkey’s Q4 2023 survey, 81 were buying Johnson & Johnson (NYSE:JNJ) stock. Ken Fisher’s Fisher Asset Management was the largest investor, with 6.3 million shares worth $996 million.
Thermo Fisher Scientific (NYSE:TMO), Johnson & Johnson (NYSE:JNJ), Danaher Corporation (NYSE:DHR), and UnitedHealth Group Incorporated (NYSE:UNH) are Here are some of the top medical stocks to invest in.
8. Intuitive Surgical (NASDAQ:ISRG)
Number of hedge fund shareholders in Q4 2023: 82
Intuitive Surgical, Inc. (NASDAQ:ISRG) is one of the few successful surgical robot companies and one of the most advanced medical stocks in the world. In the fourth quarter of 2023, procedures on the DaVinci platform increased by his 21%, and the company maintained its growth trajectory.
For investments in the fourth quarter of 2023, the company was a shareholder in 82 of the 933 hedge funds tracked by Insider Monkey. The largest hedge fund investor in Intuitive Surgical, Inc. (NASDAQ: ISRG) is Ken Fisher’s Fisher Asset Management, with a $1.5 billion stake.
7. Elevance Health (NYSE:ELV)
Number of hedge fund shareholders in Q4 2023: 83
Elevance Health, Inc. (NYSE:ELV) offers healthcare insurance plans and is one of the oldest medical stocks on our list, having been founded in 1944. Like other healthcare plan providers, it managed to beat his initial EPS analyst forecasts for 2023. The third quarter is over, but the fourth quarter ended up being an inevitable failure.
During December 2023, 83 of the 933 hedge funds in Insider Monkey’s database were investors in the company. Among them, Elevance Health Inc. (NYSE:ELV)’s largest shareholder is Jean-Marie Eveillard’s First Eagle Investment Management, with $838 million worth of shares.
6. Humana Inc. (NYSE:HUM)
Number of hedge fund shareholders in Q4 2023: 86
Humana Inc. (NYSE:HUM) is also a healthcare plan provider. The company announced bad news for investors in February 2024 when it revealed that the federal rate on its products was disappointing. However, the company maintained its guidance for 2025.
By the end of last year’s fourth quarter, 86 of the 933 hedge funds surveyed by Insider Monkey had purchased Humana Inc. (NYSE:HUM) stock. Ken Griffin’s Citadel Investment Group had the largest stake, valued at $688 million.
CClick here to read more and check out the 5 best healthcare stocks for hedge fund investing.
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Disclosure: None. 14 best medical stocks for investment selected by hedge funds Originally published on Insider Monkey.
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