5 Favorite Defensive Stocks of Hedge Funds

In this article, we discuss the 5 defensive stocks that are favorites among hedge funds. If you want to read our comprehensive analysis of these stocks and the current market situation, go directly to 10 Favorite Defensive Stocks of Hedge Funds.

5. CVS Health Corporation (NYSE:CVS)

Number Of Hedge Fund Holders: 72

CVS Health Corporation (NYSE:CVS) is an American healthcare company that operates a network of retail pharmacies and clinics across the United States. The brands that operate under the company include CVS Pharmacy, CVS Caremark, MinuteClinic, and Omnicare.

Earlier this April, Tigress Financial analyst Ivan Feinseth raised the price target on CVS Health Corporation (NYSE:CVS) to $125 from $122 and reiterated a Buy rating on the shares. The analyst says that the company’s primary care focus strategy combined with an “extensive” retail store and service network will continue to drive long-term shareholder value creation.

For the first quarter, CVS Health Corporation (NYSE:CVS) posted earnings per share of $2.22, beating market estimates by $0.08. The company also reported $76.8 billion in revenue for the quarter, outperforming analysts’ forecasts by $1.53 billion.

According to Insider Monkey’s Q1 2022 database, 72 hedge funds held stakes worth $1.56 billion in CVS Health Corporation (NYSE:CVS). This is compared to 71 funds that owned positions in the company in the previous quarter. Harris Associates was the biggest shareholder of CVS Health Corporation (NYSE:CVS) at the end of the first quarter, with a stake worth $421 million.

Here is what ClearBridge Investments had to say about CVS Health Corporation (NYSE:CVS) in its Q4 2021 investor letter:

“Improving health remains a key impact theme for the portfolio, and over the past year or so we have increased our exposure to the health care sector, through the addition of CVS Health, which is well-positioned to help define the future of health care in terms of costs, quality and convenience.”