In this article, we will be looking at 5 healthcare stocks to buy now according to billionaire Louis Bacon. If you want to see our comprehensive analysis of Bacon’s history, investment philosophy, and hedge fund performance, go directly to 10 Healthcare Stocks to Buy Now According to Billionaire Louis Bacon.
5. CVS Health Corporation (NYSE:CVS)
Moore Global Investments’ Stake Value: $25.51 million
Moore Global Investments’ 13F Portfolio: 0.38%
Number of Hedge Fund Holders: 61
Next up is CVS Health Corporation (NYSE:CVS), a healthcare services provider in the United States operating through its segments: Pharmacy Services, Retail or Long Term Care, Health Care Benefits, and Corporate/Other. The company reported an EPS of $1.97 for the third quarter, which beat consensus estimates by $0.18. CVS Health Corporation (NYSE:CVS) reported $73.79 billion in quarterly revenue, outperforming estimates by $3.27 billion.
On December 10, Truist analyst David MacDonald kept a ‘Buy’ rating on CVS Health Corporation (NYSE:CVS) stock, raising the price target to $118 from $112. The analyst noted a positive view of CVS’s evolving healthcare strategy, given the company’s unique collection of assets, its push into healthcare delivery and increase in the company’s balance sheet optionality.
61 hedge funds were long CVS Health Corporation (NYSE:CVS) by the end of the third quarter, in comparison to 67 hedge funds in the preceding quarter. This hedge fund sentiment data was derived using Insider Monkey’s database of 867 elite hedge funds.
Investment firm Clearbridge Investments mentioned CVS Health Corporation (NYSE:CVS) in its Q2 2021 investor letter. Here’s what the fund said:
“Our differentiated positions in the health care sector also made strong contributions as the market began to reward the heavily discounted sector. CVS Health saw strength in its pharmacy benefits manager business as well as its managed care business, Aetna, helping to confirm our positive view of CVS’s repositioning of its business model from a dispensary model to a service model. With CVS store-based health care services offering patients better convenience, encouraging better health care compliance and ultimately lower costs, we believe the company is at the forefront of a changing mindset in the health care services sector.”
4. Medtronic plc (NYSE:MDT)
Moore Global Investments’ Stake Value: $26.39 million
Moore Global Investments’ 13F Portfolio: 0.4%
Number of Hedge Fund Holders: 62
Medtronic plc (NYSE:MDT) is a medical technology company which offers device-based medical therapies and services. It is based in Dublin, Ireland and its shares trade at $112.45 on the NYSE stock exchange as of December 13. For the third quarter, the firm reported an EPS of $1.32, beating estimates by $0.03.
As of the third quarter, 62 hedge funds held positions in Medtronic plc (NYSE:MDT), with a combined value of $2.27 billion. This shows a downward trend from last quarter where 68 hedge funds held stakes worth $3.39 billion in the company.
On December 9, RBC Capital analyst Shagun Singh initiated coverage of Medtronic plc (NYSE:MDT) with an ‘Outperform’ rating and a $140 price target, noting that the company was “at the front-end of the strongest innovation cycle in its history.” The analyst also noted that the company’s pipeline opportunity was under-appreciated, citing its work in disruptive markets such as surgical robotics, cardiac ablation and lead-less pacemakers.
3. Thermo Fisher Scientific Inc. (NYSE:TMO)
Moore Global Investments’ Stake Value: $33.78 million
Moore Global Investments’ 13F Portfolio: 0.51%
Number of Hedge Fund Holders: 94
Thermo Fisher Scientific Inc. (NYSE:TMO) is next on our list of top healthcare stocks to buy according to billionaire Louis Bacon. The company offers analytical instruments, equipment, laboratory products and life sciences solutions around the globe. It operates through its segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Services. Earnings per share for the third quarter stood at $5.76, which was above consensus estimates by $1.06.
On October 28, SVB Leerink analyst Puneet Souda kept an ‘Outperform’ rating on Thermo Fisher Scientific Inc. (NYSE:TMO) stock, raising the price target to $685 from $675. The company completed its acquisition of PPD, Inc., a leading clinical research organization, for $17.4 billon in December. This move is set to contribute $1.50 to Thermo Fisher Scientific Inc.’s (NYSE:TMO) adjusted EPS in 2022.
Investors were bullish on Thermo Fisher Scientific Inc. (NYSE:TMO) stock at the close of the third quarter, with 94 hedge funds out of 867 tracked by Insider Monkey reported owning shares in the company. In contrast, 87 hedge funds held positions in the company a quarter earlier.
Investment firm L1 Capital recently released its Q3 investor letter, where it mentioned Thermo Fisher Scientific Inc. (NYSE:TMO). Here’s what the fund said:
“Included in these adjustments, in early July 2021, we divested our remaining small investment in Thermo Fisher Scientific (Thermo Fisher), the world leader in the provision of equipment, consumables, and services to the Life Sciences industry. Thermo Fisher has benefited from elevated demand for its products and services associated with COVID-19 and we sold our residual investment at a gain of more than 70% compared to our average investment cost. Thermo Fisher subsequently held an Investor Day and positively surprised many people, including us, with very strong medium-term growth targets, notwithstanding a headwind from normalisation of COVID-19-related business. Thermo Fisher is a high-quality business and remains on our ‘Bench’ for potential reinvestment.”
2. Guardant Health, Inc. (NASDAQ:GH)
Moore Global Investments’ Stake Value: $52.29 million
Moore Global Investments’ 13F Portfolio: 0.79%
Number of Hedge Fund Holders: 31
Guardant Health, Inc. (NASDAQ:GH) is a precision oncology company which provides cancer treatment through advanced analytics and testing. It reported earnings per share of -$1.06 in the third quarter, which missed analysts’ estimates by $0.17. Revenue for the quarter came in at $94.78 million, which beat analysts’ forecasts by $2.19 million.
Investors were seen off-loading Guardant Health, Inc. (NASDAQ:GH) stock, with 31 hedge funds holding positions in the company in Q3 2021, as compared to 49 hedge funds in the previous quarter.
On October 14, research firm Cowen maintained its ‘Outperform’ rating on Guardant Health, Inc. (NASDAQ:GH) stock, setting a $170 price target. This rating was provided by analyst Max Masucci.
1. Moderna, Inc. (NASDAQ:MRNA)
Moore Global Investments’ Stake Value: $73.12 million
Moore Global Investments’ 13F Portfolio: 1.11%
Number of Hedge Fund Holders: 49
Moderna, Inc. (NASDAQ:MRNA) deals in the development of transformative medicine based on messenger ribonucleic acid (mRNA). It offers a range of vaccines, including its popular Covid-19 dose with an efficacy rate of 94.1% in a large-scale, ongoing clinical trial.
On December 6, Cowen analyst Tyler Van Buren initiated coverage of Moderna, Inc. (NASDAQ:MRNA) with a ‘Market Perform’ rating and a price target of $250. The analyst noted that demand for the company’s Covid vaccine would be robust for the foreseeable future, with the company positioned to address any emerging variants that might be of concern.
Investors are loading up on the vaccine maker, with 49 hedge funds reporting ownership of stakes in Moderna, Inc. (NASDAQ:MRNA) at the close of the third quarter. In contrast, 37 hedge funds held stakes in the company a quarter ago.
Investment management firm Carillon Tower Advisers mentioned in its Q3 investor letter. Here’s what the fund said:
“Moderna is a biotechnology company pioneering messenger RNA (mRNA) therapeutics and vaccines. The stock proved to be an impressive contributor once again in the quarter, as investors continue to evaluate the potential for future growth driven primarily by the firm’s revolutionary COVID-19 vaccine. Strong global demand for the vaccine may persist for the foreseeable future in order to maintain immunity as well as provide protection against any additional future variants. The potential for the firm’s mRNA technology to be used in a number of other use cases, specifically influenza, could also provide an additional tailwind for future growth.”
You can also take a look at 10 Best Tech Stocks to Buy Right Now Under $10 and 10 Best Software Stocks To Buy Now
