5 Best Medical Stocks to Invest In

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In this article we discuss the 5 best medical stocks to invest in. If you want to read our detailed analysis of these companies, go directly to 10 Best Medical Stocks to Invest In.

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

Market Cap: $193.8 billion
Number of Hedge Fund Holders: 79 

Merck & Co., Inc. (NYSE: MRK) is fifth on our list of best medical stocks to invest in. It is an American pharmaceutical company manufacturing medicines for some life-threatening diseases, such as cancer, HIV, Ebola, etc. The company is widely known for its philanthropic actions and spent nearly $3.1 billion philanthropic actions in 2019. Merck & Co., Inc. (NYSE: MRK) is one of the biggest companies with over 74,000 employees. 

In Q1 2021, Merck & Co., Inc. (NYSE: MRK) reported a revenue of over $12 billion and $1.40 EPS, missing the market estimate of $1.63. The MRK stock has also shown consistent growth, gaining over 4.8% in the past year, and is ranked as ‘Overweight’ by JPMorgan, earlier in June. Merck & Co., Inc. (NYSE: MRK) also announced a quarterly dividend of $0.65 per share. 

At the end of Q1 2021, 79 hedge funds tracked by Insider Monkey hold positions in Merck & Co., Inc. (NYSE: MRK), worth $6.4 billion. 

Artisan Partners, an investment management firm, released its Q1 2021 investor letter and mentioned Merck & Co., Inc. (NYSE: MRK) in it. 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.”

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