In this article, we discuss the 5 best Covid vaccine and pill stocks to invest in. If you want to read our detailed analysis of these stocks, go directly to the 11 Best Covid Vaccine and Pill Stocks To Invest In.
5. Gilead Sciences, Inc. (NASDAQ:GILD)
Number of Hedge Fund Holders: 54
Gilead Sciences, Inc. (NASDAQ:GILD) recently posted earnings for the third quarter, reporting earnings per share of $2.65, beating estimates by $0.87. The revenue over the period was $7.4 billion, up 13% year-on-year and beating predictions by $1 billion. A few weeks before the results, the company had obtained regulatory approval of a new drug for the treatment of HIV patients. The firm has also inked an agreement with drug giant Merck for collaboration on a breast cancer treatment.
On October 19, investment advisory Cowen initiated coverage of Gilead Sciences, Inc. (NASDAQ:GILD) stock with an Outperform rating. BMO Capital also has a positive outlook on the company.
At the end of the second quarter of 2021, 54 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in Gilead Sciences, Inc. (NASDAQ:GILD), down from 65 in the previous quarter worth $2.6 billion.
In its Q3 2020 investor letter, Nelson Roberts Investment Advisors, an asset management firm, highlighted a few stocks and Gilead Sciences, Inc. (NASDAQ:GILD) was one of them. Here is what the fund said:
“In the healthcare sector, we sold our position in Gilead (NASDAQ: GILD) as there are no near or medium-term growth drivers for the company. Its popular HIV drug, Truvada, is going off patent this year. Additionally, UnitedHealth Group said it would not cover Gilead’s other HIV drug, Descovy. Lastly, the multiple acquisitions that Gilead has made recently are not ready for prime time, and it will likely be two years or more before any of Gilead’s new drugs have a meaningful impact on revenue.”
4. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 64
Eli Lilly and Company (NYSE:LLY) is among the few drug giants that do not market the COVID-19 vaccine. However, the company has instead worked on other treatments for the virus. Although the firm narrowly missed market estimates on earnings per share in the third quarter, it beat them on revenue and improved guidance for the months ahead, resulting in positive coverage from analysts.
Berenberg analyst Kerry Holford recently upgraded Eli Lilly and Company (NYSE:LLY) stock to Buy from Hold and increased the price target to $270 from $240, noting that the estimates for the long-term sales growth of the firm looked favorable compared to peers.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Eli Lilly and Company (NYSE:LLY) with 1.7 million shares worth more than $391 million.
In its Q1 2020 investor letter, Amana Mutual Funds Trust highlighted a few stocks and Eli Lilly and Company (NYSE:LLY) was one of them. Here is what the fund said:
“Even so, Lilly stood out as one, among a handful, of companies that registered a positive return for the first quarter. In January, Lilly reported excellent fourth quarter results, with revenue growing at a faster clip than over the first three quarters of the year. Lilly is also financially strong with debt equivalent to only two times EBITDA3 and 12% of market capitalization. Johnson & Johnson, while trailing Lilly, shares many of the same characteristics and also outperformed.”
3. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 67
Pfizer Inc. (NYSE:PFE) develops and sells perhaps the most famous COVID-19 vaccine around the world. The vaccine was recently approved for children aged 5-11 years-old as well. The company has a market cap of more than $245 billion. Authorities in the European Union recently approved the use of a simpler regimen for Vocabria, a drug developed by the firm along with GlaxoSmithKline, in treatment of HIV patients.
Morgan Stanley analyst Matthew Harrison recently maintained an Equal Weight rating on Pfizer Inc. (NYSE:PFE) stock and raised the price target to $48 from $45, noting the broader adoption of the COVID-19 vaccine of the firm.
At the end of the second quarter of 2021, 67 hedge funds in the database of Insider Monkey held stakes worth $2.3 billion in Pfizer Inc. (NYSE:PFE), up from 65 in the preceding quarter worth $2 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Pfizer Inc. (NYSE:PFE) was one of them. Here is what the fund said:
“Our underweights in health care and staples contributed to relative performance during the period. As we continue to focus the portfolio on high-conviction ideas, we sold Pfizer in late 2020, in the health care sector.”
2. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 79
Merck & Co., Inc. (NYSE:MRK) is a New Jersey-based healthcare company. It has a market cap of more than $222 billion and is one of the biggest pharma stocks in the United States. The stock has been rallying recently and touched a 52-week high late last month on the back of reports that the company had developed a COVID-19 pill. It also recently beat market expectations on earnings per share and revenue in the third quarter results.
Analysts have been upgrading Merck & Co., Inc. (NYSE:MRK) stock on these positive catalysts. Argus and SVB Leerink are both positive on the long-term outlook of the firm, with Buy and Outperform ratings respectively.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Merck & Co., Inc. (NYSE:MRK) with 10.3 million shares worth more than $802 million.
In its Q1 2021 investor letter, Artisan Partners highlighted a few stocks and Merck & Co., Inc. (NYSE:MRK) was one of them. 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.”
1. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 88
Johnson & Johnson (NYSE:JNJ) makes and sells a variety of healthcare products. It is one of the most reliable businesses in the world with an impressive history of dividend payouts that stretches back decades. On October 21, the company declared a quarterly dividend of $1.06 per share, in line with previous. The forward yield was 2.6%. In the third quarter earnings, the firm beat market expectations on earnings per share by $0.25.
The company also boosted guidance for the fiscal year following the quarterly earnings beat. Johnson & Johnson (NYSE:JNJ) recently obtained regulatory approval for COVID-19 vaccine booster shots.
At the end of the second quarter of 2021, 88 hedge funds in the database of Insider Monkey held stakes worth $7 billion in Johnson & Johnson (NYSE:JNJ), up from 81 in the previous quarter worth $6.9 billion.
You can also take a peek at Stanley Druckenmiller is Loading Up on These 15 Stocks and 10 Stocks to Buy and Hold for Long Term According to Warren Buffett.
