Retirement Stock Portfolio: 5 Healthcare Stocks To Consider

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

Number of Hedge Fund Holders: 79

Merck & Co., Inc. (NYSE:MRK) recently made waves as WHO announced to purchase the company’s Covid-19 pill as a part of its broader program. The company ranks third on our list of the best healthcare stocks to buy.

In October, Morgan Stanley lifted its price target on Merck & Co., Inc. (NYSE:MRK) to $88, with an Equal Weight rating on the shares. The firm’s analyst, Matthew Harrison also raised his EPS estimates for 2022 to $8.00. Merck & Co., Inc. (NYSE:MRK) pays an annual dividend of $2.60 per share, yielding 3.29%. The company’s dividend payout ratio stands at 43.77%.

Of the 873 elite funds tracked by Insider Monkey, 79 hedge funds have positions in Merck & Co., Inc. (NYSE:MRK) in Q2, the same as in the previous quarter. The total value of these stakes is over $5.29 billion.

Artisan Partners mentioned Merck & Co., Inc. (NYSE:MRK) in its Q1 2021 investor letter. Here is what the firm has to say:

“In Q1, we initiated a position in Merck, a provider of health care solutions including prescription medicines, vaccines, biologic therapies, animal health and consumer care products. We purchased Merck when the stock came under pressure in part on concerns that the newly minted Biden administration could implement regulatory changes and lower drug costs in the pharmaceutical industry. Recent, but anticipated changes to Merck’s management team have also weighed on shares, as have concerns over the company’s heavy reliance on immunotherapy treatment Keytruda. Notably, Merck is not getting much credit from investors for the 60+ programs it has in clinical development, despite having several solid and large new product opportunities. Additionally, the company’s strong balance sheet and robust free cash flow provide it multiple options for future partnerships and acquisitions. While Merck is undergoing a period of transition, we think the company’s fundamentals are strong and believe changes to management should be a catalyst for improvement.”