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

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

Number of Hedge Fund Holders: 84

Merck & Co., Inc. (NYSE:MRK) markets drug therapies around the world, and is based in New Jersey. The biopharmaceutical giant is popular among hedge funds, as 84 reported ownership of the company shares at the end of Q1 2022, up from 80 hedge funds a quarter earlier.

Merck & Co., Inc. (NYSE:MRK) released its quarterly earnings report in late April, and posted earnings per share of $2.14 for the first quarter, beating estimates by $0.31. Quarterly revenue was registered at $15.9 billion, up 31.63% year-on-year, and beating Street forecasts by $1.25 billion.

On April 12, Barclays analyst Carter Gould maintained an ‘Overweight’ rating on Merck & Co., Inc. (NYSE:MRK) shares, and raised the price target to $97 from $94. The company shares have seen an uptick of 21.09% in the year to date as of May 27.

Miller Howard Investments, an investment firm, highlighted a few stocks in its Q3 2021 investor letter, and Merck & Co., Inc. (NYSE:MRK) was one of them. The fund said:

“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We hold three pharmaceutical companies, (which includes) Merck (MRK). All three have strong cash flows and balance sheets, making their high dividends reasonably safe. The investment controversy surrounding these pharma companies is whether they can develop or acquire new products to replace their current blockbuster drugs. The low valuations on these stocks reflects what we believe to be undue pessimism by investors on the prospects for new drugs.”