5 Best Pharmaceutical Stocks to Invest In

In this article, we discuss the 5 Best Pharmaceutical Stocks to Invest In. If you want to read our detailed analysis of these stocks, go directly to the 15 Best Pharmaceutical Stocks to Invest In.

5. Catalent, Inc. (NYSE: CTLT)

Number of Hedge Fund Holders: 40

Catalent, Inc. (NYSE:CTLT) is an American pharmaceutical company, active in R&D and manufacturing of biologics and gene therapies. It also helps other big pharmaceutical companies with drug research and development. It is ranked fifth on our list of 15 best pharmaceutical stocks to invest in. The stock has returned over 32.55% to investors over the course of the past year.

On May 4, Catalent, Inc. (NYSE:CTLT) posted earnings for the first quarter of 2021, reporting earnings per share of $0.82, beating estimates by $0.07. The revenue over the period was around $1.05 billion, up 38.48% year-over-year.

At the end of the second quarter of 2021, 40 hedge funds in the database of Insider Monkey held stakes worth $870.98 million in Catalent, Inc. (NYSE:CTLT). 

Out of the hedge funds tracked by Insider Monkey, billionaire Ken Griffin’s Citadel Investment Group has the most valuable stake in Catalent, Inc. (NYSE:CTLT) as of the end of the second quarter of 2021, worth $159.7 million, comprising 0.03% of its total 13F portfolio.

Madison Small Cap Fund, in its Q4 2020 investor letter, mentioned Catalent, Inc. (NYSE: CTLT). Here is what the fund said:

“Healthcare continued its streak of underperformance in the fourth quarter. The biotech industry component of the Russell 2000 was up 34% for the quarter and 53% for the year. While we have become more open to investing in this space where appropriate, we prefer molecular diagnostics given less regulatory risk and better revenue diversification. With the new administration comes a shift in healthcare philosophy. We believe that further access to care and coverage expansion will benefit some parts of the sector. However, the risk of further reimbursement cuts, particularly in pharmaceuticals, will bear monitoring. We would note that one of our strong outperformers, Catalent, benefited from increased demand due to the Covid-19 pandemic. This stock returned 84% in 2020. While we think the fundamentals here are still strong, the stock has grown into a midcap.”