In this article, we discuss the 5 best diabetes stocks to buy now. If you want to read about some more diabetes stocks, go directly to 10 Best Diabetes Stocks To Buy Now.
5. Medtronic plc (NYSE:MDT)
Number of Hedge Fund Holders: 54
Medtronic plc (NYSE:MDT) develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients. It is one of the premier diabetes stocks to invest in. On September 20, regulatory authorities in the United States warned about a potential cybersecurity risk for an insulin pump system developed by Medtronic. The regulatory body said the MiniMed 600 series pump system had parts that communicate wirelessly but clarified that it had not received any reports related to their misuse yet.
On September 7, RBC Capital analyst Shagun Sing maintained an Outperform rating on Medtronic plc (NYSE:MDT) stock and lowered the price target to $110 from $122, appreciating the earnings and guidance numbers of the firm.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Medtronic plc (NYSE:MDT), with 3.8 million shares worth more than $338 million.
In its Q1 2022 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Medtronic plc (NYSE:MDT) was one of them. Here is what the fund said:
“Ireland-based Medtronic plc (NYSE:MDT) is a leading health care company focused on supplying many important life-saving devices like pacemakers, defibrillators, and insulin pumps. This is another company with attractive pricing power and a business model that can hold up well during inflationary periods. Medtronic has increased market share across almost 70% of its portfolio since the start of the pandemic, which is a higher percentage than even before the pandemic. With growth-oriented companies falling out of favor over the quarter, the stock’s relatively discounted valuation (at approximately 19x earnings) also bolstered its performance.”
4. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 61
Abbott Laboratories (NYSE:ABT) discovers, develops, manufactures, and sells health care products worldwide. It is one of the top diabetes stocks to invest in. The company has an impressive dividend profile. It has consistently paid a dividend to shareholders for the past thirty-two years. On September 15, the firm declared a quarterly dividend of $0.47 per share, in line with previous. The forward yield was a solid 1.78%. The dividend is payable to shareholders by late September and early October.
On July 21, RBC Capital analyst Shagun Singh maintained an Outperform rating on Abbott Laboratories (NYSE:ABT) stock and lowered the price target to $132 from $143, appreciating the solid second quarter earnings results of the firm.
Among the hedge funds being tracked by Insider Monkey, Washington-based firm Fisher Asset Management is a leading shareholder in Abbott Laboratories (NYSE:ABT), with 9.4 million shares worth more than $1 billion.
In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Abbott Laboratories (NYSE:ABT) was one of them. Here is what the fund said:
“Abbott Laboratories (NYSE:ABT) announced a recall of its infant formula brand Similac® in the US. Though the recall will impact near-term revenues, we are not concerned about any long-term impacts. We remain optimistic about the company’s prospects over the long run because, in our view, it is one of the highest quality names in health care with a talented management team that makes smart capital allocation decisions. Abbott also has leading health care and consumer franchises with a particularly strong competitive position in the medical device business. Abbott continues to launch innovative products in key strategic areas (such as diabetes, structural heart and diagnostics), which should help drive not only revenue growth but margin expansion.”
3. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 70
Eli Lilly and Company (NYSE:LLY) discovers, develops, and markets human pharmaceuticals worldwide. The firm is among the best diabetes stocks to invest in. The company has a legacy business in the diabetes sector. Per Eli Lilly and Company (NYSE:LLY), merely two years after Frederick Banting and Charles Best discovered insulin for the treatment of humans, the firm manufactured and brought the first commercial insulin, Iletin, to people living with diabetes. The firm was founded in 1876 and is based in Indiana.
On September 6, BMO Capital analyst Evan Seigerman maintained an Outperform rating on Eli Lilly and Company (NYSE:LLY) stock and raised the price target to $396 from $369, noting it was difficult to overemphasize the opportunity in obesity drugs for the firm.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Eli Lilly and Company (NYSE:LLY), with 5.9 million shares worth more than $1.9 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Eli Lilly and Company (NYSE:LLY) was one of them. Here is what the fund said:
“Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company focused on discovering, developing, and selling medicines for patients in the therapeutic areas of diabetes, oncology, immunology, and neuroscience. Stock performance was strong due to positive study results for Eli Lilly’s drug Tirzepatide (subsequently branded Mounjaro), which delivered up to 22.5% weight loss in adults with obesity. We think Tirzepatide is in the early innings of adoption in a large obesity market where penetration of anti-obesity medications is currently low. We continue to think Eli 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 solid revenue and earnings growth over many years.”
2. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 71
AbbVie Inc. (NYSE:ABBV) discovers, develops, manufactures, and sells pharmaceuticals worldwide. The company is one of the most prominent diabetes stocks to invest in. The company has an impressive dividend profile. It has consistently paid a dividend to shareholders since its inception in 2013. On September 9, the firm declared a quarterly dividend of $1.41 per share, in line with previous. The forward yield was a solid 3.99%. The dividend is payable to shareholders by early October and mid-November.
On September 21, JPMorgan analyst Chris Schott maintained an Overweight rating on AbbVie Inc. (NYSE:ABBV) stock with a price target of $180, noting the firm was among the best large cap ideas in the pharma sector.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in AbbVie Inc. (NYSE:ABBV), with 4.3 million shares worth more than $645 million.
In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and AbbVie Inc. (NYSE:ABBV) was one of them. Here is what the fund said:
“We added to our health care exposure in the quarter with the purchases of Straumann Holding (OTCPK:SAUHF), a Swiss manufacturer of medical instruments, implants and related supplies for dental procedures, in the secular bucket and U.S. pharmaceutical maker AbbVie Inc. (NYSE:ABBV) in the structural bucket. Straumann is the global market leader in dental implants with 29% overall share, a meaningful position within premium implants and smaller share in value implants. The company is also involved in clear aligners through a series of acquisitions as well as peripheral capital equipment around those businesses.
Growth will come from increasing share in both value implants and clear aligners through expansion in emerging markets on top of market growth in its premium implant business. AbbVie is undergoing a transition in anticipation of loss of exclusivity for its blockbuster Humira in the next several years with several commercial therapeutics, led by Skyrizi for psoriasis and Rinvoq for rheumatoid arthritis.”
1. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 79
Merck & Co., Inc. (NYSE:MRK) operates as a healthcare company worldwide. The firm features on the list of best diabetes stocks to invest in. The company recently won a patent suit related to a diabetes drug against rival Viatris. A US District Court in West Virginia sided with the New Jersey-based drugmaker over intellectual property challenges tied to sitagliptin, which is an active ingredient in Januvia and its offshoots, Janumet and Janumet XR. The court found both Merck patents involved in the feud were valid and infringed, the company said.
On September 14, Berenberg analyst Luisa Hector upgraded Merck & Co., Inc. (NYSE:MRK) stock to Buy from Hold and raised the price target to $100 from $95, noting the simple success stories in the pharma sector remained attractive for investors.
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 12 million shares worth more than $1.1 billion.
In its Q2 2022 investor letter, Chartwell Investment Partners, an asset management firm, highlighted a few stocks and Merck & Co., Inc. (NYSE:MRK) was one of them. Here is what the fund said:
“In the Dividend Equity accounts, the three best performers in Q2 includes Merck & Co., Inc. (NYSE:MRK), up 12.0%. Merck, like other pharma companies, is in a defensive business, but the stock also did well as peak-sales estimates for their flagship drug, Keytruda, have gone up (JPMorgan estimates $32 billion in sales by 2026).”
You can also take a peek at 10 Best Healthcare Dividend Stocks to Buy Now and 10 Dividend Stocks with Over 20 Years of Dividend Increases.
