12 Best Weight Loss Stocks to Buy According to Hedge Funds

3. Bristol-Myers Squibb Company (NYSE:BMY)

Number of Hedge Fund Holders: 70 

Bristol-Myers Squibb Company (NYSE:BMY), a leading biopharmaceutical company headquartered in Princeton, New Jersey, specializes in innovative treatments for oncology, cardiovascular diseases, immunology, and fibrotic conditions. The company has also explored weight loss through its diabetes medications, which show potential in managing obesity alongside type 2 diabetes. It’s Exenatide (Byetta and Bydureon), a GLP-1 receptor agonist, has demonstrated modest weight loss benefits, with a 2.7% BMI reduction observed in obese adolescents during clinical trials.

Bristol-Myers Squibb Company (NYSE:BMY)’s Metformin, which is widely used for blood sugar control, aids weight management by activating hunger-reducing pathways. Similarly, Dapagliflozin, developed in collaboration with AstraZeneca, supports weight reduction by increasing glucose excretion through the kidneys. These therapies reflect a broader trend in using diabetes medications for weight management, paralleling emerging drugs like Semaglutide and Tirzepatide, which achieve significant weight loss of up to 14.9% and 20.9%, respectively. This dual action of addressing metabolic disorders and promoting weight loss underscores the growing role of diabetes drugs in combating obesity.

In Q3 2024, Bristol-Myers Squibb Company (NYSE:BMY) reported total revenues of $11.9 billion, an 8% year-over-year increase (+10% adjusted for foreign exchange) which was driven by the Growth Portfolio, which generated $5.8 billion, marking an 18% growth (+20% adjusted for foreign exchange). Key financial metrics include a GAAP EPS of $0.60 (down from $0.93 in Q3 2023) and a non-GAAP EPS of $1.80 (compared to $2.00 a year earlier). Gross margins decreased to 75.1% from 77.1% due to changes in the product mix, and R&D expenses rose by 6% to $2.4 billion, reflecting recent acquisitions and ongoing clinical trials.

Bristol-Myers Squibb Company (NYSE:BMY) raised its 2024 revenue guidance to approximately 5% growth, with a revised non-GAAP EPS range of $0.75–$0.95. Increased demand for key products like Eliquis and new therapies within the Growth Portfolio largely contributed to the revenue boost. Additionally, the corporation achieved U.S. approval for Cobenfy, a novel treatment for schizophrenia that may also impact metabolic health, indirectly influencing weight management through improved mental health outcomes.

As of Q3 2024, 70 hedge funds held shares in the company with Pzena Investment Management being the largest shareholder with shares worth $734.7 million, as tracked by the Insider Monkey database.