In this article, we discuss the 5 best cancer stocks to buy now. If you want to read our detailed analysis of these companies, go directly to read the 10 Best Cancer Stocks To Buy Now.
5. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 67
Pfizer Inc. (NYSE:PFE) is a New York-based pharmaceutical giant. In 2020, the company’s breast cancer drug, Ibrance, generated $5.39 billion in sales. In the second quarter of 2021, the drugmaker’s revenue in the cancer segment grew 19% year over year to $3.15 billion. And with over 32 cancer drug pipelines, Pfizer Inc. (NYSE:PFE) is one of the 10 best cancer stocks to buy now.
On October 12, Matthew Harrison of Morgan Stanley increased his price target for Pfizer Inc. (NYSE:PFE) to $48 from $45, while maintaining an Equal-Weight rating. In September, the drug manufacturer declared a quarterly dividend of $0.39 per share. Pfizer Inc. (NYSE:PFE) offers a forward dividend yield of 3.55%.
Of the 873 elite funds tracked by Insider Monkey, 67 hedge funds were long Pfizer Inc. (NYSE:PFE) in Q2 2021, compared with 65 in the previous quarter.
Pfizer Inc. (NYSE:PFE) shares are up 17.2% year to date after the FDA recommended approval of the drugmaker’s COVID-19 vaccine for children. The FDA approved Pfizer Inc.’s (NYSE:PFE) COVID-19 booster shot in September.
4. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 73
Bristol-Myers Squibb Company (NYSE:BMY) is a good investment option for income investors as the healthcare company offers a dividend yield of 3.40%. In the second quarter of 2021, the company’s revenue came in at $11.7 billion, beating estimates by $100 million. In Q2, the company’s leading cancer drugs, Revlimid and Opdivo, brought in $3.2 billion and $1.91 billion.
At the end of June, 73 funds out of the 873 tracked by Insider Monkey had stakes in the company, compared to 81 in the previous quarter.
The New York-based pharmaceutical company is one of the best cancer stocks to buy now. On October 25, Citi analyst Andrew Baum maintained a Buy rating on Bristol-Myers Squibb Company (NYSE:BMY) with a price target of $75 per share.
3. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 79
Merck & Co., Inc. (NYSE:MRK) is the manufacturer of the most profitable cancer drug in the world, Keytruda. In 2020, Keytruda generated worldwide revenue of $14.38 billion, making Merck & Co., Inc. (NYSE:MRK) one of the best cancer stocks to buy now. In the second quarter of 2021, the drugmaker’s revenue from Keytruda grew 23% to $4.2 billion. The company’s total revenue in Q2 increased 23% year over year to $11.4 billion.
On October 1, Merck & Co., Inc. (NYSE:MRK) shares climbed nearly 10% following positive sentiments about the company’s COVID-19 pill, Molnupiravir.
On October 22, analyst Daina Graybosch of SVB Leerink maintained an Outperform rating on Merck & Co., Inc. (NYSE:MRK). The analyst increased her price target for the stock to $105 from $104.
Fisher Asset Management is the biggest stakeholder of the company as of the second quarter, with an $802 million stake. Overall, 79 funds of the 873 elite funds tracked by Insider Monkey reported owning stakes in the New Jersey-based company at the end of June 2021.
In its Q1 2021 investor letter, Artisan Partners mentioned Merck & Co., Inc. (NYSE:MRK), and shared their insights on the company. Here is what the fund said:
“In Q1, we initiated a position in Merck, a provider of health care solutions including prescription medicines, vaccines, biologic therapies, animal health and consumer care products. We purchased Merck when the stock came under pressure in part on concerns that the newly minted Biden administration could implement regulatory changes and lower drug costs in the pharmaceutical industry. Recent, but anticipated changes to Merck’s management team have also weighed on shares, as have concerns over the company’s heavy reliance on immunotherapy treatment Keytruda. Notably, Merck is not getting much credit from investors for the 60+ programs it has in clinical development, despite having several solid and large new product opportunities. Additionally, the company’s strong balance sheet and robust free cash flow provide it multiple options for future partnerships and acquisitions. While Merck is undergoing a period of transition, we think the company’s fundamentals are strong and believe changes to management should be a catalyst for improvement.”
2. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 82
AbbVie Inc. (NYSE:ABBV) is the second-best cancer stock to buy now with $1.82 billion revenue from its hematologic oncology segment in Q2 2021. The company’s cancer drug, Imbruvica, contributed $1.38 billion to the total revenue. Overall, AbbVie Inc.’s (NYSE:ABBV) revenue in the second quarter came in at $13.9 billion, an increase of 33.9% year over year.
AbbVie Inc. (NYSE:ABBV) is a dividend aristocrat that increased its dividend payment for the last 49 years. The company offers a high dividend yield of 4.76%. Shares of AbbVie Inc. (NYSE:ABBV) increased 29% in the past twelve months.
As of the end of the second quarter, 82 hedge funds tracked by Insider Monkey reported owning stakes in AbbVie Inc. (NYSE:ABBV). The total worth of these stakes is $5.35 billion.
1. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 88
Johnson & Johnson (NYSE:JNJ) operates a strong cancer pharmaceutical segment and it tops our list of 10 best cancer stocks to buy now. In the second quarter of 2021, the company’s revenue in the pharmaceutical segment grew 13.8% year over year to $12.9 billion. One of the revenue drivers in the quarter was Johnson & Johnson’s (NYSE:JNJ) leading cancer medicine, Darzalex.
On October 20, Raymond James analyst Jayson Bedford maintained an Outperform rating on Johnson & Johnson (NYSE:JNJ). The analyst set a price target of $178 per share. The stock gained 13% in the past twelve months.
Fundsmith LLP is the biggest stakeholder of the company as of the second quarter, with a $1.18 billion stake. Overall, 88 funds of the 873 elite funds tracked by Insider Monkey reported owning stakes in Johnson & Johnson (NYSE:JNJ) at the end of June 2021.
In the Q2 2021 investor letter of Distillate Capital, the fund mentioned Johnson & Johnson (NYSE:JNJ) and discussed its stance on the firm. Here is what the fund said:
“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 11 Best High Dividend Stocks Under $50 and Mark Cuban Stock Portfolio: 10 Stocks To Consider.
