In this piece we’ll take a look at the top five best health care stocks. For more stocks, head on to 12 Best Healthcare Stocks To Buy Now.
5. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 79
Pfizer Inc. (NYSE:PFE) is an American healthcare company that is one of the largest of its kind in the world. The firm has a wide variety of medicines and vaccines that target diseases and disorders such as heart problems, COVID-19, endocrine system problems, and hemophilia.
One of the strongest points for Pfizer Inc. (NYSE:PFE) is the fact that the firm has more than 90 drugs in development in its pipeline. This lends stability to its future and the top two drugs out of these have a total addressable market value of $11 billion by 2027. The company also has a strong dividend yield of 3.19% as it pays 40 cents per share.
Morgan Stanley reduced Pfizer Inc. (NYSE:PFE)’s share price target to $49 from $52 in July 2022, outlining that companies that will perform strongly in the latter half of this decade deserve strong attention. 79 out of the 912 hedge funds part of Insider Monkey’s Q1 2022 survey had held stakes in the company.
Pfizer Inc. (NYSE:PFE)’s largest investor is Cliff Asness’s AQR Capital Management which owns 10 million shares that are worth $554 million.
“While the level of general turnover abated as we progressed through 2021, it remained high in one area: post-COVID-19 recovery plays. The concept behind this investment thesis was, and still is, straightforward: with the advent of effective vaccines, the path from pandemic to endemic is just a matter of time. As this transition occurs, the estimated excess savings of over $2 trillion built up on U.S. consumer balance sheets will unlock dramatic pent-up demand for experiences, especially global travel. This investment case seemed especially compelling when the Pfizer vaccine positively surprised markets in November 2020. As a result, we made post-COVID-19 stocks (which were trading well below our estimate of recovery value) a sizable theme within the portfolio. We understood this to be a more aggressive tilt in positioning because it required a major improvement in demand to catalyze fundamentals and drive price toward higher business values. While we accepted that recovery would not be smooth and that it would take time to deploy vaccines both domestically and globally, we decided that recovery was the logical path of least resistance and we were being well compensated for these risks.