In this article, we will take a look at the 10 healthcare stocks to buy according to John Rogers’ Ariel Investments. You can skip our detailed analysis of John Rogers’ history, investment philosophy, and his firm’s performance, and go directly to the 5 Healthcare Stocks to Buy According to John Rogers’ Ariel Investments.
Ariel Investments is a global value-based asset management firm that concentrates on investing in small- and mid-cap stocks based in the United States. The company was launched by John W. Rogers, Jr. in 1983 with an investment of $10,000.
John W. Rogers did his BA in economics from Princeton University. In 2007, he was honored with the Woodrow Wilson Award from Princeton University.
According to the Q2 13F filings of Ariel Investments, the company has over $10.64 billion worth of assets under its management. The top three holdings of the firm as of the second quarter of 2021 include Baidu, Inc. (NASDAQ:BIDU), Philip Morris International Inc. (NYSE:PM) and Lazard Ltd (NYSE:LAZ).
Our Methodology
This list has been compiled after analyzing the healthcare stocks of John Rogers’ Ariel Investments in the second quarter of 2021. We have also mentioned the total number of hedge funds having stakes in each company as tracked by Insider Monkey in the second quarter of 2021.
Why should we pay attention to hedge funds’ stock picks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Healthcare Stocks to Buy According to John Rogers’ Ariel Investments
10. Hanger, Inc. (NYSE:HNGR)
Ariel Investments Stake Value: $6.86 million
Percent of Ariel Investments Portfolio: 0.06%
Number of Hedge Fund Holders: 13
Hanger, Inc. (NYSE:HNGR) is a Texas-based company with country-wide operations. The company is engaged in providing orthotic and prosthetic services. The company also offers therapeutic systems and rehabilitation services.
At the end of the second quarter of 2021, Ariel Investments holds over 271,514 shares worth $6.86 million. Hanger, Inc. (NYSE:HNGR) accounts for 0.06% of the 13F portfolio.
According to the database of Insider Monkey tracking 873 hedge funds in Q2 2021, 13 were bullish on Hanger, Inc. (NYSE:HNGR), having stakes worth $46.5 million. This number has increased from 11 in Q1 2021, valuing at $52.8 million.
9. GlaxoSmithKline plc (NYSE:GSK)
Ariel Investments Stake Value: $10.39 million
Percent of Ariel Investments’ Portfolio: 0.09%
Number of Hedge Fund Holders: 28
GlaxoSmithKline plc (NYSE:GSK) is based in London and is involved in the research, manufacturing, testing, and selling of drugs, vaccines, over-the-counter medicines, and pharmaceutical products. The company also produces healthcare consumer goods like nasal sprays, denture adhesives, and lip balms. The company has operations in the UK, the US, and internationally.
At the end of the second quarter of 2021, Ariel Investments holds 260,941 shares in GlaxoSmithKline plc (NYSE:GSK), worth $10.39 million.
According to the database of Insider Monkey tracking 873 hedge funds in Q2 2021, 28 were bullish on GlaxoSmithKline plc (NYSE:GSK), having stakes worth $1.46 billion, up from 25 in Q1 2021, valuing at $1.35 billion.
8. Bio-Rad Laboratories, Inc. (NYSE:BIO)
Ariel Investments Stake Value: $33.6 million
Percent of Ariel Investments’ Portfolio: 0.31%
Number of Hedge Fund Holders: 41
Bio-Rad Laboratories, Inc. (NYSE:BIO) is based in California and produces and sells life sciences research and clinical diagnostic products. The company has operations in the US, Europe, Asia, and Canada. The company also provides chemicals and biological materials used in clinical processes.
As of the second quarter of 2021, Ariel Investments has 52,134 shares in Bio-Rad Laboratories, Inc. (NYSE:BIO), valued at $33.6 million.
As of Q2 2021, 41 hedge funds as tracked by Insider Monkey have stakes in Bio-Rad Laboratories, Inc. (NYSE:BIO), worth $1.29 billion. This number has decreased from 44 recorded in the Q1 of 2021.
7. Zimmer Biomet Holdings, Inc. (NYSE:ZBH)
Ariel Investments Stake Value: $56.3 million
Percent of Ariel Investments’ Portfolio: 0.52%
Number of Hedge Fund Holders: 48
Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is based in Indiana and is engaged in the designing, manufacturing, and selling of healthcare products and medical devices. These products include solutions for musculoskeletal healthcare, reconstructive products, and replacement products. The company has operations in the US, Asia, Europe, and Africa.
At the end of the second quarter of 2021, Ariel Investments holds 350,122 shares in Zimmer Biomet Holdings, Inc. (NYSE:ZBH), worth $56.3 million. Zimmer Biomet Holdings, Inc. (NYSE:ZBH) accounts for 0.52% of the 13F portfolio.
As of Q2 2021, 48 hedge funds as tracked by Insider Monkey have stakes in Zimmer Biomet Holdings, Inc. (NYSE:ZBH), worth $1.785 billion. This number has decreased from 50 recorded in the Q1 of 2021.
Like Philip Morris International Inc. (NYSE:PM), Microsoft Corporation (NASDAQ:MSFT), and Mattel, Inc. (NASDAQ:MAT), Zimmer Biomet Holdings, Inc. (NYSE:ZBH) is a notable holding of John Rogers’ 13F securities portfolio.
6. Cardinal Health, Inc. (NYSE:CAH)
Ariel Investments Stake Value: $59.1 million
Percent of Ariel Investments’ Portfolio: 0.55%
Number of Hedge Fund Holders: 40
Cardinal Health, Inc. (NYSE:CAH), headquartered in Ohio, operates as an integrated healthcare provider in the US, Europe, and Asia. The company provides clinical equipment, healthcare systems, and customized solutions for pharmacies, clinical laboratories, and patients.
According to the database of Insider Monkey tracking 873 hedge funds in Q2 2021, 40 were bullish on Cardinal Health, Inc. (NYSE:CAH), having stakes worth $897 million. This number has increased from 39 in the Q1 of 2021, worth $967 million.
As of the second quarter of 2021, Ariel Investments holds 1.03 million shares of the company worth $59.1 million. Cardinal Health, Inc. (NYSE:CAH).
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Disclosure. None. 10 Healthcare Stocks to Buy According to John Rogers’ Ariel Investments is originally published on Insider Monkey.
Correction: The article was amended at 2:29 PM ET, November 15, to reflect that Ariel Investments is a global value-based asset management firm. John Rogers’ full-name was also added.
