12 Best Weight Loss Stocks to Buy According to Hedge Funds

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2. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 80 

Pfizer Inc. (NYSE:PFE) is a leading pharmaceutical company founded in 1849 and headquartered in New York City. It manufactures and markets a wide range of healthcare products, including medicines and vaccines. Pfizer is advancing its focus on obesity treatment with the development of danuglipron, an oral glucagon-like peptide-1 (GLP-1) receptor agonist. Danuglipron mimics the GLP-1 hormone to regulate appetite and glucose metabolism, promoting weight loss by signaling fullness to the brain, increasing insulin secretion, and slowing gastric emptying.  Earlier trials of a twice-daily formulation showed up to 13% body weight reduction over 32 weeks but faced high dropout rates due to side effects like nausea and vomiting.

Pfizer Inc. (NYSE:PFE) enters the weight loss market to compete with well-known injectable GLP-1 drugs such as Ozempic and Wegovy from Novo Nordisk. The oral version of danuglipron may solve injection-related usability issues and provide a more practical choice in the expanding market for obesity treatment.

In Q3 2024, the company reported $17.7 billion in revenues, a 31% increase from Q3 2023 which was driven by strong oncology product performance and demand for Paxlovid during a COVID-19 wave. Excluding Paxlovid and Comirnaty, revenues still grew 14%, showcasing the strength of Pfizer Inc. (NYSE:PFE)’s non-COVID portfolio. The company reported a net income of $4.5 billion, reversing a $2.4 billion loss from the previous year. Reported diluted EPS rose to $0.78 from a loss of $0.42, and adjusted diluted EPS improved to $1.06 from a loss of $0.17.

Pfizer Inc. (NYSE:PFE) raised its 2024 revenue guidance to $61.0–$64.0 billion and adjusted diluted EPS guidance to $2.75–$2.95, reflecting confidence in its product performance and strategic initiatives.

Analysts hold a consensus Moderate Buy rating on the stock and as of Q3 2024, 80 hedge funds held shares in the company, as tracked by the Insider Monkey database. Out of these 80, the largest shareholder was Citadel Investment Group with holdings worth $718.4 million.

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