10 Best Vaccine Stocks To Buy Now

Published October 28, 2022 at 6:48 pm EDT Updated August 31, 2026 at 8:40 pm EDT

In this article, we will discuss the 10 best vaccine stocks to buy now.

One of the most defensive areas of the market is healthcare, and in 2022 when the markets are falling to new lows, healthcare is showing remarkable resilience and even signs of upside potential. On October 22, Carter Braxton Worth, a notable financial analyst and stock market strategist, appeared in an interview on CNBC where he discussed the strong price action that vaccine stocks are exhibiting and cemented his thesis on why he thinks some vaccine stocks are “poised to break out”. Carter Worth noted that all sectors of the market, excluding energy, are down. However, within the sectors that are down, healthcare is down the least. Carter Worth analyzed the chart for the Health Care Select Sector SPDR Fund (NYSEARCA:XLV) and its performance relative to the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) and his analysis showed that healthcare is outperforming the S&P 500 in 2022. Carter Worth named some stocks that are “at 52-week highs and poised to break out”. Among his mentions were Eli Lilly and Company (NYSE:LLY) and Merck & Co., Inc. (NYSE:MRK). Carter Worth said that “we know that healthcare is up more than the market in the sense that it is down less than the market” and that the two stocks from his mentions “are actually up” and investors should “buy them both”.

The stock market is in distress in 2022. As of October 28, the S&P 500 is down 19.3% for the year, the Nasdaq has lost 30.6% since the beginning of the year, and the Dow has tanked 10.7% year to date. The healthcare sector, however, is exhibiting resilience and as of October 28, the Health Care Select Sector SPDR Fund is down roughly 5% for the year, outperforming all major market indices. Some of the best vaccine stocks to buy now include Eli Lilly and Company, Merck & Co., Inc., and Pfizer Inc. (NYSE:PFE).

Photo by National Cancer Institute on Unsplash

Our Methodology

To determine the best vaccine stocks to buy now, we screened for vaccine companies that had innovative products, solid pipelines, and industry-leading positions. We narrowed down our selection to companies that had positive market sentiment and the potential to capture further market share. Along with each stock, we have mentioned the hedge fund sentiment, analyst ratings, and relevant metrics that can help our readers make informed investment decisions. These stocks are ranked according to their popularity among elite hedge funds.

10 Best Vaccine Stocks To Buy Now

10. Dynavax Technologies Corporation (NASDAQ:DVAX)

Number of Hedge Fund Holders: 18

Dynavax Technologies Corporation (NASDAQ:DVAX) is a clinical-stage immunotherapy company that is focused on discovering, developing, and commercializing products to prevent and treat infectious and inflammatory diseases in the United States. The company’s lead product candidate is HEPLISAV-B, a hepatitis B vaccine for individuals of age 18 years and older. The stock is attractively valued and is presenting an optimal buying opportunity for investors. As of October 28, Dynavax Technologies Corporation is trading at a PE multiple of 7x. The stock ranks among the best vaccine stocks to buy now.

Wall Street is bullish on Dynavax Technologies Corporation. On September 27, JMP Securities analyst Roy Buchanan took coverage of Dynavax Technologies Corporation with an Outperform rating and a $22 price target.

At the close of Q2 2022, 18 hedge funds disclosed ownership of stakes in Dynavax Technologies Corporation. These funds held collective stakes of $206.8 million in the company, up from $191.3 million in the previous quarter with 22 positions.

As of June 30, Fisher Asset Management is the largest shareholder in Dynavax Technologies Corporation and has stakes worth $53.9 million in the company.

Some of the best-in-class vaccine manufacturers that are expected to capture further market share include Eli Lilly and Company, Merck & Co., Inc., and Pfizer Inc..

9. Novavax, Inc. (NASDAQ:NVAX)

Number of Hedge Fund Holders: 25

Novavax, Inc. (NASDAQ:NVAX) is a clinical-stage vaccine company focused on the discovery, development, and commercialization of vaccines to prevent serious infectious diseases. The company’s lead product candidate is NVX-CoV2373, which is in Phase III clinical trials for the prevention of COVID-19. The stock has been on a wild ride in 2022 but has started to rebound in recent days. As of October 28, the stock has gained 15.9% over the past month.

On October 19, Novavax, Inc. announced that its COVID-19 Vaccine, NVX-CoV2373, has received emergency use authorization from the FDA. Novavax, Inc. has a competitive management team with extensive experience in the vaccine industry, and a robust clinical pipeline with several other potential candidates in early- to late-stage development. The stock is one of the best vaccine stocks to buy now.

Over the past three months, Novavax, Inc. has received 3 Buy ratings from Wall Street analysts and has an average price target of $67, which represents an upside of 196% from current levels.

At the end of Q2 2022, 25 hedge funds were bullish on Novavax, Inc. and held stakes worth $255.6 million in the company. This is compared to 27 positions in the preceding quarter with stakes worth $278.7 million. As of June 30, Coatue Management is the largest shareholder in Novavax, Inc. and has stakes worth $63.8 million in the company.

8. Sanofi (NYSE:SNY)

Number of Hedge Fund Holders: 28

Sanofi (NYSE:SNY) is a large, publicly traded French pharmaceutical company with a long history of success. The company has a diversified product portfolio that includes both prescription and over-the-counter drugs, as well as vaccines. Sanofi also has a strong presence in emerging markets, which is expected to continue to grow. The company has a good track record of delivering shareholder value and is expected to continue to do so in the future. Sanofi ranks among the best vaccine stocks to buy now.

Sanofi is trading at an attractive valuation and is awarding investors with dividends. As of October 28, the stock has a trailing twelve-month PE ratio of 16 and is offering a forward dividend yield of 4.23%. The company has free cash flows of EUR 2.85 billion.

On September 7, Deutsche Bank analyst Emmanuel Papadakis revised his price target on Sanofi to EUR 85 from EUR 90 and maintained a Hold rating on the shares. This September, Credit Suisse analyst Dominic Lunn adjusted his price target on Sanofi to EUR 106 from EUR 110 and reiterated an Outperform rating on the shares.

At the close of Q2 2022, 28 hedge funds were long Sanofi and held stakes worth $1.68 billion in the company. This is compared to 19 positions in the preceding quarter with stakes worth $1.57 billion. The hedge fund sentiment for the stock is positive.

As of June 30, Fisher Asset Management is the leading shareholder in Sanofi and has stakes worth $881 million in the company.

7. GSK plc (NYSE:GSK)

Number of Hedge Fund Holders: 34

GSK plc (NYSE:GSK) is a large, well-established pharmaceutical company with a long history of profitability. The company has a strong portfolio of products, including many blockbuster drugs, and a strong pipeline of new drugs in development. On October 27, GSK plc (NYSE:GSK) announced that the European Medicines Agency has accepted to review its respiratory syncytial virus older adult vaccine candidate. The company also said that it expects to hear a regulatory decision in the third quarter of 2023, and if regulatory approval is granted, the company’s vaccine will be the first vaccine available to help protect senior citizens from RSV lower respiratory tract disease. GSK plc (NYSE:GSK) ranks among the best vaccine stocks to buy now.

On August 5, Morgan Stanley analyst Mark Purcell resumed coverage of GSK plc (NYSE:GSK) with an Equal Weight rating and a 1,860 GBP price target. This August, UBS analyst Laura Sutcliffe revised her target on GSK plc (NYSE:GSK) to 1,820 GBP from 1,860 GBP and reiterated a Neutral rating on the shares.

At the end of Q2 2022, 34 hedge funds held stakes in GSK plc (NYSE:GSK). These funds held collective stakes of $2.37 billion in the company, up from $2.31 billion in the preceding quarter with 33 positions. The hedge fund sentiment for the stock is positive.

As of June 30, Fisher Asset Management is the most prominent shareholder in GSK plc (NYSE:GSK) and has stakes worth $851.8 million in the company.

6. Moderna, Inc. (NASDAQ:MRNA)

Number of Hedge Fund Holders: 45

Moderna, Inc. (NASDAQ:MRNA) is a clinical-stage biotechnology company that focuses on discovering, developing, and commercializing therapeutic vaccines based on messenger RNA. The company is one of the largest and best-in-class vaccine makers in the world. The company’s mRNA technology platform is being used to develop a pipeline of vaccines and therapeutics against a range of infectious diseases, cancer, and other conditions. Moderna, Inc. has a strong balance sheet, with over $9.2 billion in free cash flow. The company is well-positioned to commercialize its products and continue to invest in its R&D pipeline. Moderna, Inc. ranks high among the best vaccine stocks to invest in right now.

On October 21, SVB Securities analyst Mani Foroohar raised his price target on Moderna, Inc. to $101 from $72 and upgraded the stock to Market Perform from Underperform. This October, Morgan Stanley analyst Matthew Harrison maintained an Equal Weight rating and his $175 price target on Moderna, Inc..

At the close of Q2 2022, Moderna, Inc. was spotted on 45 hedge fund portfolios. These funds disclosed stakes of $2.63 billion in the company. Of these funds, Theleme Partners is the top shareholder in the company and has stakes worth $907.7 million.

Here is what Baron Funds had to say about Moderna, Inc. in its third-quarter 2022 investor letter:

“Within biotechnology, underperformance of Moderna, Inc. (NASDAQ:MRNA) and lower exposure to this better performing sub-industry weighed the most on relative performance. Shares of Moderna, a leader in the emerging field of mRNA-based vaccines and therapeutics, declined due to increasing uncertainty around what a booster market could look like as COVID shifts away from pandemic status and becomes an increasingly commercial market rather than government funded.”

In addition to Moderna, Inc., investors can rack up shares of Eli Lilly and Company, Merck & Co., Inc., and Pfizer Inc. to benefit from secular tailwinds and growth in the healthcare industry.

5. Amgen, Inc. (NASDAQ:AMGN)

Number of Hedge Fund Holders: 55

Amgen, Inc. (NASDAQ:AMGN) is a large, diversified biotech company with multiple blockbuster drugs and a strong pipeline of new drugs in development. Amgen, Inc. has a strong track record of success in clinical trials and commercializing new drugs. The company has a large, global sales force and a strong brand. The stock is one of the best vaccine stocks to buy now.

On October 20, Amgen, Inc. announced that it has acquired ChemoCentryx for $52 per share in cash, for a transaction amount of $3.7 billion. ChemoCentryx is a biopharmaceutical company that is involved in the research and development of therapies for inflammatory and autoimmune diseases and cancer.

On October 12, Barclays analyst Carter Gould revised his price target on Amgen, Inc. to $234 from $236 and maintained an Equal Weight rating on the shares. This October, Morgan Stanley analyst Matthew Harrison upgraded Amgen, Inc. to Overweight from Equal Weight and raised his price target on the stock to $279 from $257.

At the close of Q2 2022, 55 hedge funds were bullish on Amgen, Inc. and held stakes worth $2.17 billion in the company. This is compared to 56 positions in the previous quarter with stakes of $1.88 billion. As of June 30, Two Sigma Advisors is the top investor in Amgen, Inc. and has stakes worth $404 million in the company.

Here is what Smead Capital Management had to say about Amgen Inc. in its third-quarter 2022 investor letter:

“Two things are very noticeable right off the top. First, sometimes you have to be happy losing less in a bear market environment so that you have more of your capital to grow in the next bull market. We are never really happy losing money. Second, 2022 is likely to be our third year of existence as a fund to lose money for the year. This year would join 2008 and 2018 in this undistinguished category. Our biggest detractors was dominated by Amgen (NASDAQ:AMGN). Consumer/investor fears about media and e-commerce hit WBD and EBAY and profit taking in Amgen came from early 2022 strength.”

4. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 70

Eli Lilly and Company is a major pharmaceutical company based in the United States with over 100 years of history. The company has a diversified product portfolio and a strong track record of delivering shareholder value. As of October 28, the stock is offering a forward dividend yield of 1.10% and the company has free cash flows of $4.94 billion. Eli Lilly and Company is ranked high among the best vaccine stocks to buy now.

This September, Morgan Stanley analyst Terence Flynn reiterated an Overweight rating and his $412 price target on Eli Lilly and Company. On September 30, Argus analyst Jasper Hellweg raised his price target on Eli Lilly and Company to $360 from $315 and reiterated a Buy rating on the shares.

At the end of Q2 2022, 70 hedge funds were long Eli Lilly and Company and held stakes worth $6.71 billion. This is compared to 53 positions in the preceding quarter with stakes worth $5.07 billion. The hedge fund sentiment for the stock is positive. As of June 30, Fisher Asset Management is the most prominent shareholder in Eli Lilly and Company and has stakes worth $1.92 billion in the company.

Here is what Baron Funds had to say about Eli Lilly and Company in its third-quarter 2022 investor letter:

“In pharmaceuticals, our largest investment is in Eli Lilly and Company (NYSE:LLY). Lilly’s new diabetes drug Mounjaro is off to a strong start. In addition, Mounjaro may be approved for obesity next year. In clinical trials, Mounjaro delivered up to 22.5% average weight loss in adults with obesity and has the potential to be a top-selling drug. Lilly also has a drug in development for Alzheimer’s disease in the same class as Lecanemab, a drug being developed by Biogen and Eisai that slowed the rate of cognitive decline in a late-stage clinical trial. Lilly is not facing any significant near-term patent expirations and we think the company should be able to grow revenue and earnings at attractive rates through the end of the decade and beyond.”

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

Number of Hedge Fund Holders: 79

Merck & Co., Inc. 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. 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. 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.. This October, Cantor Fitzgerald analyst Louise Chen raised her price target on Merck & Co., Inc. 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. 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. 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. 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.”

2. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 70

Pfizer Inc. is a leading global diversified healthcare company that develops and manufactures prescription medicines, vaccines, and consumer health products. The company has a strong history of dividend growth, and the company’s dividend is well-covered by earnings. The company is a leader in the development of innovative new medicines, and its products are backed by a large and growing body of clinical data. Pfizer Inc. is one of the best vaccine stocks to buy now.

Shares of Pfizer Inc. have pulled back in 2022 and are presenting an attractive entry point for investors. As of October 28, the stock is trading at a PE multiple of 8x and is yielding 3.51%. The company has a strong cash position and has reported free cash flows of $28.4 billion.

On October 11, SVB Securities analyst David Risinger revised his price target on Pfizer Inc. to $48 from $53 and maintained a Market Perform rating on the shares. This October, Barclays analyst Carter Gould adjusted his price target on Pfizer Inc. to $44 from $50 and reiterated an Equal Weight rating on the shares.

At the end of Q2 2022, Pfizer Inc. was spotted on 70 hedge fund portfolios. These funds disclosed stakes of $2.80 billion in the company. As of June 30, AQR Capital Management is the top investor in Pfizer Inc. and has stakes worth $553.9 million in the company.

Here is what Diamond Hill Capital had to say about Pfizer Inc. in its third-quarter 2022 investor letter:

“Also among our bottom contributors were health care products manufacturer Abbott Labs, global pharmaceutical company Pfizer Inc. (NYSE:PFE), media and technology giant Alphabet, and insurance company American International Group (AIG). Although Pfizer continues to report strong performance of its core drugs, sales of its COVID vaccine and treatment have likely peaked and sales are expected to decline going forward. We remain optimistic about the company long term as we believe management is taking the company in the right direction, focusing R&D, and making strategic acquisitions with profits generated from COVID vaccine sales.”

1. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 83

Johnson & Johnson is an industry leader and has a proven track record of successfully executing its growth strategies. The company is also a dividend aristocrat, and its dividend yield sits at 2.62%, as of October 28. The company has a defensive business model and investors can rely on it for both growth and income. Johnson & Johnson is ranked high among the best vaccine stocks to buy now.

On October 18, Johnson & Johnson announced market-beating earnings for the fiscal third quarter of 2022. The company reported earnings per share of $2.55 and outperformed EPS estimates by $0.06. The company generated a revenue of $23.79 billion and beat expectations by $357.9 million.

On October 19, Bernstein analyst Lee Hambright revised his price target on Johnson & Johnson to $190 from $194 and maintained a Market Perform rating on the shares. This October, Barclays analyst Matt Miksic took coverage of Johnson & Johnson with an Equal Weight rating and a $175 price target.

At the close of Q2 2022, 83 hedge funds were long Johnson & Johnson and held stakes worth $6.76 billion in the company. Of those, GQG Partners was the most prominent shareholder and disclosed stakes of $1.16 billion in the company.

Here is what Distillate Capital Partners LLC had to say about Johnson & Johnson in its second-quarter 2022 investor letter:

“Johnson & Johnson was among the 2 largest trims at around 1% each. Each stock was up 1% in the quarter compared to the 16% price decline for the S&P 500 and the positions were reduced as the valuations became somewhat less appealing, though still attractive enough to warrant inclusion.”

You can also take a look at Best Value Stocks To Buy According To Warren Buffett and Best Stocks For Beginners with Little Money.

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