11 Best Diabetes Stocks To Buy Now

Published November 27, 2022 at 5:27 pm EST Updated August 31, 2026 at 8:41 pm EDT

In this article, we discuss 11 best diabetes stocks to buy now.

The global diabetes market is segmented based on the type, drug class, and devices used to treat the condition. Based on the type, the market is divided into type 1 diabetes, type 2 diabetes, and gestational diabetes. Technology advancements in the healthcare space are driving manufacturers to invest in the research and development of efficient insulin delivery devices. The global diabetes care devices market is forecasted to grow from $28,942.1 million in 2022 to $ 42,119.3 million by 2028 at a CAGR of 6.4% during the forecast period.

According to the World Health Organization, diabetes continues to be a huge constraint to global health and is one of the biggest causes of death worldwide, as more than 420 million people are currently diabetic. In 2022, the global insulin market was worth $21.11 billion, and it is predicted to reach $25 billion by 2030. North America is the biggest player in the global insulin market, with a 38.91% market revenue share in 2022.

Some of the best diabetes stocks to invest in include Merck & Co., Inc. (NYSE:MRK), Eli Lilly and Company (NYSE:LLY), and Abbott Laboratories (NYSE:ABT).

Our Methodology

We selected the following diabetes stocks based on positive analyst coverage, strong drug pipelines, and future growth prospects. We have assessed the hedge fund sentiment from Insider Monkey’s database of 920 elite hedge funds tracked as of the end of the third quarter of 2022.

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Best Diabetes Stocks To Buy Now

11. Provention Bio, Inc. (NASDAQ:PRVB)

Number of Hedge Fund Holders: 13

Provention Bio, Inc. (NASDAQ:PRVB) is a New Jersey-based clinical stage biopharmaceutical company, focused on the development and commercialization of therapeutics to diagnose and prevent immune-mediated diseases. It is one of the best diabetes stocks to invest in.

On November 19, Chardan analyst Geulah Livshits raised the price target on Provention Bio, Inc. to $30 from $24 and maintained a Buy rating on the shares after teplizumab gained FDA approval as the initial treatment to delay the onset of Stage 3 type 1 diabetes in adult and pediatric patients aged eight years and older with stage 2 diabetes. There is “nothing too surprising about the label,” the analyst told investors. She updated her model to reflect the approval, pricing, and a more conservative penetration based on the higher than anticipated price.

According to Insider Monkey’s data, 13 hedge funds were long Provention Bio, Inc. at the end of the third quarter of 2022, compared to 12 funds in the prior quarter. John Petry’s Sessa Capital is the largest stakeholder of the company, with 14.8 million shares worth $67 million.

Like Merck & Co., Inc., Eli Lilly and Company, and Abbott Laboratories, Provention Bio, Inc. is one of the top players in the diabetes market.

10. Halozyme Therapeutics, Inc. (NASDAQ:HALO)

Number of Hedge Fund Holders: 21

Halozyme Therapeutics, Inc. (NASDAQ:HALO) is a California-based biopharma technology platform company operating in the United States, Switzerland, Ireland, Belgium, Japan, and internationally. The company’s products are based on the ENHANZE drug delivery technology, a patented human hyaluronidase enzyme that allows the subcutaneous delivery of injectable biologic. This enables the quicker delivery of diabetes insulins.

On November 8, Halozyme Therapeutics, Inc. reported a Q3 bon-GAAP EPS of $0.74 and a revenue of $208.98 million, outperforming Wall Street estimates by $0.23 and $17.81 million, respectively. Revenue over the period climbed 80.4% year-over-year. For the full-year 2022, the company expects a total revenue of $655 million to $685 million, versus a consensus of $661.35 million. The FY 2022 non-GAAP diluted earnings per share are expected to be $2.10 to $2.25 compared to a consensus of $2.04.

Morgan Stanley analyst Andrew Galler on September 9 initiated coverage of Halozyme Therapeutics, Inc. with an Overweight rating and a $50 price target. He called Halozyme Therapeutics, Inc. “the most defensive name in our coverage,” citing its established royalty business, long-term potential for growth, and diversified base business via its acquisition of Antares.

According to Insider Monkey’s third quarter database, 21 hedge funds were long Halozyme Therapeutics, Inc., with collective stakes worth about $212 million. Richard Driehaus’ Driehaus Capital is the largest position holder in the company, with 1.3 million shares valued at $53.2 million.

Artisan Partners made the following comment about Halozyme Therapeutics, Inc. in its Q3 2022 investor letter:

“Despite a better-than-expected quarter and outlook, shares of Halozyme Therapeutics, Inc. have given back some of their YTD gains. We believe the profit cycle ahead is meaningful. The company has a robust pipeline of 16 products and over 10 companies leveraging its ENHANZE® platform including a partnership with Argenx (another top 10 holding) for a subcutaneous format of efgartigimod which could obtain approval in 2023. Today, Halozyme has five royalty products, and we believe this number could triple over the next five years.”

9. Tandem Diabetes Care, Inc. (NASDAQ:TNDM)

Number of Hedge Fund Holders: 28

Tandem Diabetes Care, Inc. (NASDAQ:TNDM) is a California-based medical device company that designs, develops, and commercializes various products for patients with insulin-dependent diabetes in the United States and internationally. It is one of the best diabetes stocks to monitor.

On November 15, Wells Fargo analyst Larry Biegelsen upgraded Tandem Diabetes Care, Inc. to Equal Weight from Underweight with a $43 price target. The analyst argues that consensus estimates have reset to more realistic levels after the Q3 earnings report, and valuation has also come down. The analyst noted that shares were previously trading at 3.5-times 2023 consensus sales when he downgraded the stock to Underweight, while Tandem Diabetes Care, Inc. is now trading at 2.7-times consensus 2023 sales.

According to the third quarter database of Insider Monkey, 28 hedge funds were bullish on Tandem Diabetes Care, Inc., compared to 32 funds in the prior quarter. Ricky Sandler’s Eminence Capital is the largest position holder in the company, with 1.6 million shares worth $76 million.

Here is what Alger Small Cap Focus Fund has to say about Tandem Diabetes Care, Inc. in their Q4 2020 investor letter:

“Tandem Diabetes Care provides the t:slim X2 Insulin Delivery System for treating insulin-dependent diabetes. Tandem offers the smallest durable insulin pump available, and with DexCom CGM (continuous glucose monitoring) integration. Tandem has led the development of more automated control of insulin dosing featuring its BasalHQ and Control-IQ algorithms. The company also sells insulin reservoir cartridges and infusion sets for use with its pumps. Tandem stock underperformed after the company announced third quarter results and 2020 guidance that was somewhat weaker than expected. As a durable insulin pump company, Tandem is more tied to new patient demand, which has been suppressed due to the pandemic. There are also some competitive concerns in 2021. with two other established companies planning to launch new products. However, Tandem also has a series of new products for 2021. including its mobile bolus feature, its new t-sport pump and an enhanced version of its current Control-IQ algorithm. We believe these new products are being underappreciated by investors.”

8. Novo Nordisk A/S (NYSE:NVO)

Number of Hedge Fund Holders: 40

Novo Nordisk A/S (NYSE:NVO) is a Denmark-based healthcare company engaged in the research, development, and marketing of pharmaceutical products worldwide. The Diabetes and Obesity care segment provides products in the areas of insulins, GLP-1 and related delivery systems, oral antidiabetic products, obesity, and other chronic diseases. The company’s Q3 net sales grew 28% year-over-year to DKK45.57 billion. Novo Nordisk A/S is seen as maintaining its lead in the type 2 diabetes therapy market.

On November 3, Credit Suisse analyst Dominic Lunn raised the price target on Novo Nordisk A/S to DKK 860 from DKK 820 and kept a Neutral rating on the shares.

According to Insider Monkey’s data, 40 hedge funds were long Novo Nordisk A/S at the end of the third quarter of 2022, compared to 32 funds in the prior quarter. Jim Simons’ Renaissance Technologies is the leading position holder in the company, with 15.30 million shares worth $1.5 billion.

ClearBridge Investments made the following comment about Novo Nordisk A/S in its Q3 2022 investor letter:

“The proceeds from our repositioning sales continue to be put to work across the Strategy’s secular and structural growth buckets. In particular, we have been adding more to secular, quality compounders such as Danish biotech company Novo Nordisk A/S and Japanese medical equipment supplier Olympus (OTCPK:OCPNF). These companies have strong balance sheets, good cash flow generation and significant pricing power, characteristics that should enable them to get stronger through the storm impacting international equities.”

7. AstraZeneca PLC (NASDAQ:AZN)

Number of Hedge Fund Holders: 44

AstraZeneca PLC (NASDAQ:AZN) is headquartered in Cambridge, the United Kingdom, focused on the discovery, development, manufacturing, and commercialization of prescription medicines. The company’s pipeline includes drugs for diabetic kidney disease and type-2 diabetes. AstraZeneca PLC is one of the premier diabetes stocks to monitor.

On November 4, Citi analyst Andrew Baum opened a “positive catalyst watch” on shares of AstraZeneca PLC. He estimated more than a 60% probability that AstraZeneca PLC can conclude its ongoing proton-pump inhibitors multidistrict litigation in New Jersey prior to the first bellwether case, recently delayed until March 2023. This scenario would be “materially positive” to AstraZeneca PLC’s “depressed share price,” contended the analyst.

According to Insider Monkey’s Q3 data, 44 hedge funds were long AstraZeneca PLC, compared to 47 funds in the prior quarter. Rajiv Jain’s GQG Partners is the largest stakeholder in the company, with 18.3 million shares worth $1 billion.

ClearBridge Investments made the following comment about AstraZeneca PLC in its Q3 2022 investor letter:

“AstraZeneca PLC, a multinational biopharmaceutical company, represents a good addition to the value defense side of our portfolio. We believe AstraZeneca’s durable double-digit earnings growth potential and benign patent expiration risk profile is not reflected in its current valuation, which is at a substantial discount to other “growth” pharmaceutical companies. Combined with the company’s high-potential drug pipeline, particularly in oncology, and management’s history of solid execution, we expect to see the stock rerate higher as the potential of its pipeline materializes.”

6. Medtronic plc (NYSE:MDT)

Number of Hedge Fund Holders: 55

Medtronic plc (NYSE:MDT) is an Ireland-based company that develops, manufactures, and sells device-based medical therapies to healthcare systems, clinicians, and patients worldwide. The company operates through Cardiovascular Portfolio, Medical Surgical Portfolio, Neuroscience Portfolio, and Diabetes Operating Unit segments. Medtronic plc (NYSE:MDT) offers insulin pumps and consumables, continuous glucose monitoring systems, and smart insulin pen systems. It is one of the best diabetes stocks to consider.

On November 25, Barclays analyst Matt Miksic maintained an Equal Weight rating on Medtronic plc (NYSE:MDT) but trimmed the price target on the shares to $85 from $90. The company’s reduced outlook and “tempered” recovery expectations were unexpected, the analyst told investors. However, Medtronic plc (NYSE:MDT)’s “sales shortfall and tempered recovery expectations were not,” said the analyst.

According to Insider Monkey’s data, 55 hedge funds were bullish on Medtronic plc (NYSE:MDT) at the end of Q3 2022, compared to 54 funds in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the largest stakeholder of the company, with 7.16 million shares worth $578.30 million.

In addition to Merck & Co., Inc., Eli Lilly and Company, and Abbott Laboratories, smart investors are gravitating towards Medtronic plc (NYSE:MDT) as a diabetes play.

Here is what Artisan Partners specifically said about Medtronic plc (NYSE:MDT) in its Q2 2022 investor letter:

“While Medtronic plc (NYSE:MDT)’s procedure volumes recovered to pre-COVID levels, foreign exchange headwinds overshadowed underlying business value growth, and supply chain issues, including those related to China’s lockdowns, impacted the surgical innovations business. The downdraft in the market during the quarter led to a pile-on. We are being patient with our investment in Medtronic because the company continues to be a strong free cash flow generator and is attractively priced, with a FCF yield of 5% on trailing one-year numbers and a dividend yield of 3%. Medtronic is under new management that is focused on growing the company’s top line, reinvesting in R&D, returning cash to shareholders and growing operating profits. We like new management’s strategy and believe new product launches, increased surgery visits, sound M&A transactions and a shareholder returns focus, should reinvigorate the business. We added to our positions in these health care names during the quarter.”

5. Abbott Laboratories (NYSE:ABT)

Number of Hedge Fund Holders: 62

Abbott Laboratories is one of the best diabetes stocks to invest in. The healthcare company operates through four segments – Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The Medical Devices segment provides diabetes care products. Abbott Laboratories raised its full-year 2022 EPS guidance, and the company now expects full-year diluted GAAP EPS of $3.75 to $3.81 and projects adjusted diluted EPS of $5.17 to $5.23, versus a prior guidance of $4.90 and a $5.04 consensus.

On October 26, Mizuho analyst Anthony Petrone assumed coverage of Abbott Laboratories with a Neutral rating and a $105 price target. The analyst said the Neutral rating balances the benefits of Abbott Laboratories’s “solid” presence in many of the quickest growing medical technology markets and “fortress” balance sheet against COVID testing and infant formula recall/relaunch headwinds.

According to Insider Monkey’s data, 62 hedge funds were bullish on Abbott Laboratories at the end of the third quarter of 2022, compared to 61 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with 9.12 million shares worth $883.2 million.

Diamond Hill Capital made the following comment about Abbott Laboratories in its Q3 2022 investor letter:

“Also among our bottom contributors were health care products manufacturer Abbott Laboratories, global pharmaceutical company Pfizer, media and technology giant Alphabet, and insurance company American International Group (AIG).

Abbott has been working through a recall of its infant formula brand Similac in the US, which has continued to pressure its share price. Although the recall will impact near-term revenues, we are not concerned about any long-term impacts. We remain optimistic about the company given it is one of the highest quality names in health care, in our view, with a talented management team that makes smart capital allocation decisions. Abbott also has leading health care and consumer franchises with a particularly strong competitive position in its medical device business. The company continues to launch innovative products in key strategic areas (such as diabetes, structural heart, and diagnostics), which should help drive not only revenue growth but margin expansion.”

4. DexCom, Inc. (NASDAQ:DXCM)

Number of Hedge Fund Holders: 62

DexCom, Inc. (NASDAQ:DXCM) is a California-based medical device company, focused on the design, development, and marketing of continuous glucose monitoring systems in the United States and internationally. The company’s Q3 2022 financial results beat on the top and bottom lines. U.S. revenue grew 17%, while international revenue rose 22%. For full-year 2022, DexCom, Inc. guided to a revenue of $2.88 billion to $2.91 billion, versus a consensus of $2.89 billion. DexCom, Inc. is one of the best diabetes stocks to consider.

On October 28, Cowen analyst Joshua Jennings raised the price target on DexCom, Inc. to $114 from $85 and maintained an Outperform rating on the shares. The analyst noted the company lifted the lower end of its full-year sales guidance and maintained its targets for operating margin and EBITDA.

Among the hedge funds tracked by Insider Monkey, 62 funds were long DexCom, Inc. at the end of September 2022, up from 56 funds in the prior quarter. Brandon Haley’s Holocene Advisors is a prominent position holder in the company, with 1.7 million shares worth $139.5 million.

Here is what ClearBridge Large Cap Growth ESG Strategy has to say about DexCom, Inc. in its Q2 2022 investor letter:

“Multiple compression has also hurt higher growth health care companies like DexCom, despite its strong fundamentals. We continue to build out the position as we gain greater visibility on the catalysts of accelerating uptake in Type 2 diabetes patients and the launch of its G7 continuous glucose monitor in the U.S. and Europe. DexCom was hurt in the quarter by market speculation that it would acquire a diabetes pump provider, which would be outside of its core competency.”

3. Zealand Pharma A/S (OTC:ZLDPF)

Number of Hedge Fund Holders: N/A

Zealand Pharma A/S (OTC:ZLDPF) is a Denmark-based biotechnology company manufactures and markets peptides-based medicines in Denmark, and its product portfolio includes Dasiglucagon, a diabetes management injection that works by causing the liver to release stored sugar to the blood.

On September 9, Morgan Stanley analyst Sarita Kapila initiated coverage of Zealand Pharma A/S with an Overweight rating and a DKK 179 price target. The analyst expects short-term pipeline reviews to support share outperformance and sees a positive risk/reward with the market cautious. Zealand Pharma A/S is primarily a three-asset company, with its wholly owned obesity pipeline overlooked, which represents “free” optionality, the analyst wrote in a research note.

2. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 75

Eli Lilly and Company is an American manufacturer of human pharmaceuticals. The company provides medicines like Humulin U-500, Jardiance, Trajenta, and Trulicity for diabetes. Eli Lilly and Company is one of the top diabetes stocks to look out for.

On October 17, Eli Lilly and Company declared a quarterly dividend of $0.98 per share, in line with previous. The dividend is payable on December 9, to shareholders of record on November 15. Eli Lilly and Company’s dividend yield on November 27 came in at 1.07%.

Berenberg analyst Kerry Holford on November 22 raised the price target on Eli Lilly and Company to $375 from $345 and kept a Buy rating on the shares. Despite forex headwinds, Eli Lilly and Company’s “underlying performance remains strong,” the analyst told investors. The analyst said early signs from the Mounjaro diabetes launch are encouraging and a label expansion to include an obesity indication is now anticipated before the end of 2023.

According to Insider Monkey’s Q3 database, Eli Lilly and Company was part of 75 hedge fund portfolios, compared to 70 in the prior quarter. Arrowstreet Capital held a prominent stake in the company, comprising nearly 2.5 million shares worth $802.8 million.

Here is what ClearBridge Global Growth Strategy has to say about Eli Lilly and Company in its Q3 2022 investor letter:

“In the U.S., we initiated a position in pharmaceutical maker Eli Lilly as it brings out new drug candidates for diabetes and Alzheimer’s disease. New drugs impact diabetes but have also demonstrated significant weight loss for patients who are overweight and have other co-morbidity issues as a result. Lilly is one of the two key players in diabetes care and we believe the potential market opportunity is much higher than the consensus forecasts as we are seeing evidence of accelerating adoption.”

1. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 82

Merck & Co., Inc. operates as a healthcare company worldwide. The company provides human health pharmaceutical products in the areas of oncology, hospital acute care, immunology, neuroscience, virology, cardiovascular, and diabetes. The company raised full-year 2022 worldwide sales guidance to be between $58.5 billion-$59.0 billion, up from the prior outlook of $57.5 billion-$58.5 billion. This reflects full-year growth of 20% to 21%. The consensus revenue estimate came in at $58.46 billion.

On November 17, Credit Suisse analyst Trung Huynh initiated coverage of Merck & Co., Inc. with an Outperform rating and a $120 price target, naming it one of his two top ideas on a relative basis among the U.S. large-cap biopharma group. He sees Merck & Co., Inc. having “low-risk and high short-term growth” with Keytruda growing more than 20% year-over-year, giving the company “ample time” to make up for its loss-of-exclusivity by the end of 2028. The present valuation is not factoring in Merck & Co., Inc.’s growth profile, the analyst added.

Among the hedge funds tracked by Insider Monkey, 82 funds reported owning stakes in Merck & Co., Inc. at the end of Q3 2022, compared to 79 funds in the prior quarter. Jim Simons’ Renaissance Technologies is a prominent stakeholder of the company, with 4.5 million shares worth $393 million.

Here is what Carillon Tower Advisers had to say about Merck & Co., Inc. in its Q2 2022 investor letter:

“Merck & Co., Inc. reported a strong first quarter and raised its financial guidance for 2022. The company also continues to benefit from the recent rotation into pharmaceuticals, which historically has been a more defensive industry.”

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