5 Stocks to Buy as the Senate Passes Inflation Reduction Act

3. CVS Health Corporation (NYSE:CVS)

Number of Hedge Fund Holders: 72 

CVS Health Corporation (NYSE:CVS) is a Rhode Island-based company that provides healthcare services. Reports indicate that the company is planning to purchase competitor Signify Health that is worth close to $5 billion. The latter uses a platform that employs analytics to help health insurers. Health insurers are one of the biggest beneficiaries of the Inflation Reduction Act, that has extended tax credits and increased spending on health, although the bill also includes plans to negotiate over drug prices. 

On August 8, analyst Michael Cherny maintained a Buy rating on CVS Health Corporation (NYSE:CVS) stock with a price target of $122, noting that the Signify deal would help the firm with continued evolution in the health sector. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Harris Associates is a leading shareholder in CVS Health Corporation (NYSE:CVS), with 4.1 million shares worth more than $421 million. 

In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and CVS Health Corporation (NYSE:CVS) was one of them. Here is what the fund said:

“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 Corporation (NYSE:CVS) which is well-positioned to help define the future of health care in terms of costs, quality and convenience.”