Should You Follow Hedge Funds Into These Healthcare Stocks?

#4. Merck & Co., Inc. (NYSE:MRK)

At the end of the fourth quarter of 2016, 78 hedge funds in our database held long stakes in Merck & Co., Inc. (NYSE:MRK), compared to 84 funds a quarter earlier. The New Jersey-based pharmaceutical giant’s stock rallied on Tuesday after the company reported better-than-expected first quarter results and upped its guidance for the full year. Merck’s net income for the quarter increased to an impressive $1.55 billion from $1.13 billion on a year-over-year basis. Adjusted earnings per share came in at $0.88, above analysts’ forecast of $0.83. For the full year, Merck bumped up its EPS target to $3.88 from $3.72, and its revenue target to $40.3 billion from $38.6 billion. Merck & Co., Inc. (NYSE:MRK) dominates the lucrative cancer immunotherapy market and the company’s HCV drug Zepatier is now proving itself a strong competitor to Gilead’s blockbuster drug, Harvoni.

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Romaset/Shutterstock.com

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