5 Best Vaccine Stocks To Buy Now

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

Number of Hedge Fund Holders: 79

Merck & Co., Inc. (NYSE:MRK) is a global leader in the pharmaceutical industry with a strong track record of delivering shareholder value. The company has a diversified product portfolio with blockbuster drugs in multiple therapeutic areas, including cancer, HIV, and diabetes. Merck & Co., Inc. (NYSE:MRK) has a strong pipeline of new drugs in development, which should drive future growth. The company has a strong balance sheet and generates significant cash flow, which it uses to invest in R&D and pay dividends. Moreover, the company is currently trading at an attractive valuation. As of October 28, Merck & Co., Inc. (NYSE:MRK) has a trailing twelve-month PE ratio of 14.92 and is awarding shareholders with a forward dividend yield of 2.82%. The company has free cash flows of $14.3 billion and is one of the best vaccine stocks to invest in right now.

Wall Street sees material upside to Merck & Co., Inc. (NYSE:MRK). This October, Cantor Fitzgerald analyst Louise Chen raised her price target on Merck & Co., Inc. (NYSE:MRK) to $120 from $107 and reiterated an Overweight rating on the shares. On October 28, Morgan Stanley analyst Terence Flynn raised his price target on Merck & Co., Inc. (NYSE:MRK) to $100 from $91 and maintained an Equal Weight on the shares.

At the close of Q2 2022, 79 hedge funds were eager on Merck & Co., Inc. (NYSE:MRK) and held stakes worth $6.11 billion in the company. This is compared to 84 hedge funds in the first quarter of 2022 with takes worth $5.86 billion. As of June 30, Fisher Asset Management is the leading investor in the company and has disclosed a stake of $1.1 billion.

Here is what Carillon Tower Advisers had to say about Merck & Co., Inc. (NYSE:MRK) in its second-quarter 2022 investor letter:

“Merck & Co., Inc. (NYSE:MRK) reported a strong first quarter and raised its financial guidance for 2022. The company also continues to benefit from the recent rotation into pharmaceuticals, which historically has been a more defensive industry.”