In this article, we discuss the 5 best big pharma stocks to buy now. If you want to read our detailed analysis of these companies, go directly to the 10 Best Big Pharma Stocks to Buy Now.
5. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 64
Eli Lilly and Company (NYSE:LLY) is an Indiana-based drug manufacturer and it ranks fifth on the list of 10 best big pharma stocks to buy now. The company manufactures and sells drugs to treat diabetes, cancer, rheumatoid arthritis, psoriatic arthritis, fibromyalgia, bipolar disorder, depressive symptoms, and migraine.
On August 30, Cowen analyst Steve Scala maintained an Outperform rating on Eli Lilly and Company (NYSE:LLY) and increased his price target for the stock to $300 from $250.
Eli Lilly and Company (NYSE:LLY) announced on September 21 that it has reached an agreement with the European Commission to distribute 220,000 doses of the COVID-19 medicines Bamlanivimab and Etesevimab in the European Union (EU) and European Economic Area (EEA).
The company’s second-quarter revenue came in at $6.74 billion, up 23% year over year, and beat revenue estimates by $150.73 million. The drugmaker recorded a 22% volume increase in the quarter.
At the end of the second quarter of 2021, 64 hedge funds in the database of Insider Monkey held stakes worth $2.99 billion in Eli Lilly and Company (NYSE:LLY), up from 55 in the previous quarter worth $2.55 billion.
Out of the hedge funds being tracked by Insider Monkey, Washington-based hedge fund firm Fisher Asset Management is a leading shareholder in Eli Lilly and Company (NYSE:LLY) with 6,010,313 shares worth more than $1.37 billion.
Baron Funds mentioned Eli Lilly and Company (NYSE:LLY) in its Q2 2021 investor letter:
“We started a position in Eli Lilly and Company, a large-cap pharmaceutical company. We think Lilly has a healthy base business with limited near-term patent expirations, a strong pipeline, and potential for significant margin expansion, which should translate to high single-digit revenue growth and mid-teens earnings growth over the next five years. Lilly’s pipeline includes donanemab, a potential blockbuster drug which the company is developing for Alzheimer’s disease and which recently received Breakthrough Therapy Designation by the FDA.”
4. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 67
Biopharmaceutical giant Pfizer Inc. (NYSE:PFE) ranks fourth on the list of 10 best big pharma stocks to buy now. The New York-based drug manufacturer sells medications and vaccines internationally. On September 20, Pfizer Inc. (NYSE:PFE) announced additional favorable results from a clinical study of its COVID-19 vaccine in children aged 5 to 11 years old. The COVID-19 vaccine produced by Pfizer Inc. (NYSE:PFE) and BioNTech SE (NASDAQ:BNTX) appears to be safe and stimulate a strong immune response in children under the age of 12 years old, according to clinical study results.
On September 20, SVB Leerink analysts maintained a Market Perform rating on Pfizer Inc. (NYSE:PFE) with a price target of $50 per share.
In the second quarter of 2021, Pfizer Inc. (NYSE:PFE) reported an EPS of $1.07, beating estimates by $0.09. The company’s second-quarter revenue came in at $18.98 billion and beat revenue estimates by $249.96 million. The stock has gained 19%, year to date.
At the end of the second quarter of 2021, 67 hedge funds in the database of Insider Monkey held stakes worth $2.35 billion in Pfizer Inc. (NYSE:PFE), down from 65 in the previous quarter worth $2.01 billion.
Out of the hedge funds being tracked by Insider Monkey, Ohio-based hedge fund firm Diamond Hill Capital is a leading shareholder in Pfizer Inc. (NYSE:PFE) with 11,681,378 shares worth more than $457 million.
3. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 73
New York-based drugmaker Bristol-Myers Squibb Company (NYSE:BMY) ranks third on the list of 10 best big pharma stocks to buy now. The biopharmaceutical company offers a wide variety of therapeutic medications for cancer, psoriatic arthritis, hepatitis B, and blood disorders.
On July 26, Truist analyst Robyn Karnauskas gave Bristol-Myers Squibb Company (NYSE:BMY) a Buy rating and a price target of $74 per share.
In the second quarter of 2021, Bristol-Myers Squibb Company (NYSE:BMY) reported an EPS of $1.93, beating estimates by $0.03. The company’s second-quarter revenue came in at $11.79 billion, an increase of 16% year over year, and beat revenue estimates by $474.30 million.
At the end of the second quarter of 2021, 73 hedge funds in the database of Insider Monkey held stakes worth $5.20 billion in Bristol-Myers Squibb Company (NYSE:BMY), down from 81 in the previous quarter.
Out of the hedge funds being tracked by Insider Monkey, Massachusetts-based hedge fund firm Berkshire Hathaway is a leading shareholder in Bristol-Myers Squibb Company (NYSE:BMY) with 26,294,266 shares worth more than $1.75 billion.
2. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 82
AbbVie Inc. (NYSE:ABBV) ranks second on the list of 10 best big pharma stocks to buy now. The Illinois-based pharmaceutical firm develops and sells medications for cancer, psoriasis, rheumatoid arthritis, Parkinson’s disease, and migraine.
On September 8, JPMorgan analyst Chris Schott maintained an Overweight rating on AbbVie Inc. (NYSE:ABBV) with a price target of $140 per share.
In the second quarter of 2021, AbbVie Inc. (NYSE:ABBV) reported an EPS of $3.11, beating estimates by $0.08. The company’s second-quarter revenue came in at $13.96 billion, up 33.9% year over year, and beat revenue estimates by $322.64 million. The stock has gained 23%, year to date.
At the end of the second quarter of 2021, 82 hedge funds in the database of Insider Monkey held stakes worth $5.35 billion in AbbVie Inc. (NYSE:ABBV), up from 72 in the previous quarter.
Out of the hedge funds being tracked by Insider Monkey, Massachusetts-based hedge fund firm Berkshire Hathaway is a leading shareholder in AbbVie Inc. (NYSE:ABBV) with 20,527,861 shares worth more than $2.31 billion.
1. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 88
Topping the list of 10 best big pharma stocks to buy now is American drug manufacturer Johnson & Johnson (NYSE:JNJ). The New Jersey-based drugmaker sells pharmaceuticals, consumer health products, and medical devices.
On September 7, Morgan Stanley analyst Matthew Harrison assigned an Equal-weight rating to Johnson & Johnson (NYSE:JNJ) and set a price target of $187 per share.
In the second quarter of 2021, Johnson & Johnson (NYSE:JNJ) reported an EPS of $2.48, beating estimates by $0.20. The company’s revenue in the second quarter came in at $23.31 billion, up 27.1%, and beat estimates by $802.29 million. The stock has gained 4%, year to date.
At the end of the second quarter of 2021, 88 hedge funds in the database of Insider Monkey held stakes worth $7.05 billion in Johnson & Johnson (NYSE:JNJ), up from 81 in the previous quarter worth $6.91 billion.
Out of the hedge funds being tracked by Insider Monkey, a London-based hedge fund firm, Fundsmith LLP is a leading shareholder in Johnson & Johnson (NYSE:JNJ) with 7,155,706 shares worth more than $1.17 billion.
Distillate Capital mentioned Johnson & Johnson (NYSE:JNJ) in its Q2 2021 investor letter:
“The largest additions in the rebalance, Johnson & Johnson was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”
You can also take a peek at the 10 Dividend Stocks for the Small-Cap Investor and 10 Best Stocks for Dividends.
