5 Best Healthcare Stocks to Buy in 2022 According to Hedge Funds

In this article, we discuss the 5 best healthcare stocks to buy in 2022 according to hedge funds. If you want to read our detailed review of these stocks and the latest market situation, go directly to 10 Best Healthcare Stocks to Buy in 2022 According to Hedge Funds.

5. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 83

Johnson & Johnson (NYSE:JNJ) deals in the production and sale of biopharmaceutical products, medical devices and consumer products around the world. It is known as a Dividend Aristocrat stock, having posted 59 consecutive years of dividend growth. Its yield stands at 2.50% as of May 27.

On May 23, Johnson & Johnson (NYSE:JNJ) was given an ‘Outperform’ rating by SVB Leerink analyst David Risinger, who assumed coverage of the firm with a $200 price target. He believes the company should outperform owing to its ability to post consistent growth and execute value-adding mergers and acquisitions. The stock has risen 7% in the last 12 months, and 13.36% in the last 6 months as of May 27.

Johnson & Johnson (NYSE:JNJ) beat EPS estimates by $0.10 for the first quarter, and posted quarterly revenue of $23.4 billion which fell $192 million below Street estimates.

According to the Q1 database of Insider Monkey, 83 hedge funds were bullish on Johnson & Johnson (NYSE:JNJ) shares, with combined holdings worth $7.4 billion. The same number of hedge funds were long on the company shares a quarter earlier as well. Arrowstreet Capital increased its stake in Johnson & Johnson (NYSE:JNJ) by 38% in the first quarter of 2022, and became its largest shareholder with 6.65 million shares priced at $1.17 billion.

Investment firm Distillate Capital talked about Johnson & Johnson (NYSE:JNJ) in its Q2 2021 investor letter. Here is what the fund had to say:

“The largest additions in the rebalance, Johnson & Johnson was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”