12 Best Weight Loss Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 86 

Merck & Co., Inc. (NYSE:MRK), known as MSD outside the U.S. and Canada, is a global biopharmaceutical leader addressing obesity and weight loss through innovative and multifaceted strategies. In 2013, the company launched HMR Weight Management Services, which provides evidence-based programs that integrate structured diets, behavior coaching, monitoring, and physical activity. These programs, available through clinics and a remote option called “Healthy Solutions at Home,” have shown remarkable results. Participants achieved a median weight loss of 28 pounds within 26 weeks, with 60% losing over 10% of their body weight.

In addition to lifestyle programs, Merck & Co., Inc. (NYSE:MRK) is advancing next-generation anti-obesity drugs. The company is developing efinopegdutide, which is a GLP-1 and glucagon receptor activator that offers weight loss benefits alongside improvements in cardiometabolic health. Clinical trials have demonstrated promising outcomes, positioning the corporation as a key player in the burgeoning obesity market.

In Q3 2024, Merck & Co., Inc. (NYSE:MRK) reported $16.7 billion in sales, a 4% increase (7% excluding foreign exchange). GAAP EPS fell to $1.24 (from $1.86) and non-GAAP EPS to $1.57 (from $2.13), impacted by a $0.79 per share charge from business development transactions.

The company’s R&D expenses rose 77% to $5.9 billion which was driven by acquisitions of EyeBio and CN201 (MK-1045). Its revenue growth was led by Keytruda (up 17% to $7.4 billion), strong Animal Health sales (up 6% to $1.5 billion), and contributions from new products like Winrevair and Capvaxive. The stock currently has a consensus Moderate Buy rating from analysts.

Overall, MRK ranks first among the 12 best weight loss stocks to buy according to hedge funds. While we acknowledge the potential of pharmaceutical companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MRK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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