5 Best Biotech Stocks To Buy According To Hedge Funds

1. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 77

Pfizer Inc. (NYSE:PFE) is one of the best biotech stocks to buy according to hedge funds. The company produces medicines and vaccines for immunology, oncology, cardiology, endocrinology, and neurology. On November 1, Pfizer Inc. (NYSE:PFE) reported a Q3 non-GAAP EPS of $1.78 and a revenue of $22.6 billion, outperforming Wall Street estimates by $0.38 and $1.5 billion, respectively. The company raised 2022 revenue guidance for Comirnaty by $2 billion to approximately $34 billion and reaffirmed revenue guidance for Paxlovid of nearly $22 billion, despite foreign exchange headwinds. 

On November 17, Credit Suisse analyst Trung Huynh initiated coverage of Pfizer Inc. (NYSE:PFE) with an Outperform rating and a $55 price target. Pfizer Inc. (NYSE:PFE) has been “impacted adversely” following its COVID vaccine success, but the analyst said his Outperform thesis does not reflect a single asset, but a combination of pipeline advances that will drive growth.

According to Insider  Monkey’s data, 77 hedge funds were long Pfizer Inc. (NYSE:PFE) at the end of September 2022, compared to 70 funds in the prior quarter. Cliff Asness’ AQR Capital Management is the biggest position holder in the company, with 10.6 million shares worth $467.5 million. 

Diamond Hill Capital made the following comment about Pfizer Inc. (NYSE:PFE) in its Q3 2022 investor letter:

“Also among our bottom contributors were health care products manufacturer Abbott Labs, global pharmaceutical company Pfizer Inc. (NYSE:PFE), media and technology giant Alphabet, and insurance company American International Group (AIG). Although Pfizer continues to report strong performance of its core drugs, sales of its COVID vaccine and treatment have likely peaked and sales are expected to decline going forward. We remain optimistic about the company long term as we believe management is taking the company in the right direction, focusing R&D, and making strategic acquisitions with profits generated from COVID vaccine sales.”

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