5 Best Healthcare Stocks To Invest In

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

Number of Hedge Fund Holders: 79 

Merck & Co., Inc. (NYSE:MRK) plans to double the manufacturing capacity of its Covid-19 pill, reaching 20 million courses, and has secured deals with New Zealand, Singapore, Australia, and South Korea to supply its doses.

In Q2, Merck & Co., Inc. (NYSE:MRK) reported revenue of $11.4 billion, showcasing a 21.9% growth from the prior-year quarter and beating the estimates by $200 million. In October, SVB Leerink lifted its price target on Merck & Co., Inc. (NYSE:MRK) to $105, with an Outperform rating on the shares.

At the end of Q2, 79 hedge funds tracked by Insider Monkey were bullish on Merck & Co., Inc. (NYSE:MRK), the same as in the previous quarter. These stakes are valued at $5.2 billion.

Artisan Partners mentioned Merck & Co., Inc. (NYSE:MRK) in its Q1 2021 investor letter. Here is what the firm has to say:

“In Q1, we initiated a position in Merck, a provider of health care solutions including prescription medicines, vaccines, biologic therapies, animal health and consumer care products. We purchased Merck when the stock came under pressure in part on concerns that the newly minted Biden administration could implement regulatory changes and lower drug costs in the pharmaceutical industry. Recent, but anticipated changes to Merck’s management team have also weighed on shares, as have concerns over the company’s heavy reliance on immunotherapy treatment Keytruda. Notably, Merck is not getting much credit from investors for the 60+ programs it has in clinical development, despite having several solid and large new product opportunities. Additionally, the company’s strong balance sheet and robust free cash flow provide it multiple options for future partnerships and acquisitions. While Merck is undergoing a period of transition, we think the company’s fundamentals are strong and believe changes to management should be a catalyst for improvement.”