5 Best Diabetes Stocks to Buy Now

2. Merck & Co. (NYSE:MRK)

Hedge Fund Holdings: 85 

Based in Rahway, New Jersey, Merck & Co. (NYS:MRK) is an American multinational pharmaceutical company which focuses on the production and development of medicines, vaccines, biologic therapies, and animal health products. Investor interest around Merck & Co. (NYSE:MRK) skyrocketed in Q3 2023, with 85 funds long the stock, up from 78 in the preceding quarter.

On November 9, Deutsche Bank analyst James Shin initiated coverage of Merck & Co. (NYSE:MRK) with a Buy rating and a $115 price target. According to Shin, the company is a legacy drugmaker with a strong track record of impressive margins and robust growth. It has impressive growth prospects, making it an ideal stock for retirees and investors looking for a stable income, as the company is expected to have a 5.5% dividend hike in early December. Although the stock has underperformed in the short-term, the analyst reiterated that he remains bullish on the stock long-term, primarily due to its diverse product portfolio which positions it favorably for future growth and a strong market presence. Shin estimates that the stock is about 50% undervalued.