AQR Capital’s Top 5 Stock Picks

In this article, we discuss AQR Capital’s top 5 stock picks. If you want to see AQR Capital’s performance and more stocks in this selection, check out AQR Capital’s Performance, AUM and Top Stock Picks. 

5. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 77

AQR Capital’s Stake Value: $467,588,000

Pfizer Inc. (NYSE:PFE) is an American multinational pharmaceutical and biotechnology company that offers medicines and vaccines in various therapeutic areas, including cardiovascular, metabolic, and women’s health. AQR Capital has held a position in Pfizer Inc. (NYSE:PFE) since Q4 2010, apart from a few breaks over the years. AQR owns a stake worth $467.5 million in Pfizer Inc. (NYSE:PFE) as of Q3 2022. 

On November 1, Pfizer Inc. (NYSE:PFE) reported a Q3 non-GAAP EPS of $1.78 and a revenue of $22.6 billion, outperforming Wall Street consensus by $0.38 and $1.5 billion, respectively. For full-year 2022, the company raised its revenue guidance to a range of $99.5 billion to $102.0 billion from the prior outlook of $98 billion to $102 billion, versus a $99.64 billion consensus. 

Barclays analyst Carter Gould raised the price target on Pfizer Inc. (NYSE:PFE) on November 2 to $49 from $44 and reiterated an Equal Weight rating on the shares. Pfizer Inc. (NYSE:PFE)’s Q3 print was significant, as Comirnaty “delivered a solid beat and raise, into the face of questions on demand, delivery timing, and Fx headwinds,” the analyst wrote in a research note.

According to Insider Monkey’s data, 77 hedge funds were long Pfizer Inc. (NYSE:PFE) at the end of September 2022, compared to 70 funds in the preceding quarter. Ric Dillon’s Diamond Hill Capital held a prominent stake in the company, comprising approximately 8 million shares worth $350 million.  

Diamond Hill Capital made the following comment about Pfizer Inc. (NYSE:PFE) in its Q3 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.”