In this article, we shall discuss the 5 best diabetes stocks to buy now. To read our detailed analysis of the global diabetes drugs industry in 2023, go directly and see 12 Best Diabetes Stocks to Buy Now.
5. Amgen Inc. (NASDAQ:AMGN)
Hedge Fund Holdings: 60
Based in Thousand Oaks, California, Amgen Inc. (NASDAQ:AMGN) is an American multinational biopharmaceutical company and is widely regarded as one of the largest independent biotechnology companies in the world by market cap. As of Q3 2023, investor interest around Amgen Inc. (NASDAQ:AMGN) skyrocketed, with more than 60 hedge funds long the stock. This was up from 57 funds in the preceding quarter. In Q3 2023, the company beat EPS estimates of $4.67 by $0.29, generating earnings of $4.96 per share.
On November 2, Truist Securities upgraded Amgen Inc. (NASDAQ:AMGN) to Buy from Hold, and maintained the price target at $320. According to the analyst, the company’s Q3 2023 financial results showed increased total revenues and product sales, largely catalyzed by substantial volume growth and a robust presence in international markets. This strong growth in revenue, coupled with a strategic positioning the market, strongly hints at enhanced profitability in the near-term. Furthermore, Amgen’s (NASDAQ:AMGN) share price has largely demonstrated an upward trend, periodically upheld by robust fundamentals and tactical acquisitions. Moreover, the company’s acquisition of Horizon Therapeutics for $27.8 billion in October further lent credibility to its inflammation portfolio and built on its international presence.
4. Abbott Laboratories (NYSE:ABT)
Hedge Fund Holdings: 69
Headquartered in Abbott Park, Illinois, Abbott Laboratories (NYSE:ABT) is an American multinational medical devices and healthcare company which focuses on the development and sale of medical devices, diagnostics, branded generic medicines, and nutritional products. On October 30, UBS raised the price target on Abbott Laboratories (NYSE:ABT) to $122 from $118, and maintained a Buy rating on the shares. According to the analyst, in the current precarious macroeconomic climate, Abbott Laboratories (NYSE:ABT) is a safe investment option with an AA- credit rating and a strong track record of resilience in challenging economic downturns. Furthermore, the stock has a well-diversified healthcare portfolio, making it substantially well-positioned to tackle and address the dynamic nature of healthcare challenges post the COVID-19 pandemic. Although there was a minor dip in share price early in November 2023, the company has displayed strong fundamentals, robust financial performance with strong growth across segments, and a formidable sales expansion. Owing to such robust fundamentals and strong quarterly performance, hedge fund sentiment around Abbott Laboratories (NYSE:ABT) grew more favorable in Q3 2023, with 69 funds having stakes in the company, up from 62 in the preceding quarter. The company generated an EPS of $1.14, beating estimates of $1.1 by $0.04.
3. Pfizer Inc. (NYSE:PFE)
Hedge Fund Holdings: 73
Based in Manhattan, New York City, Pfizer Inc. (NYSE:PFE) is an American multinational pharmaceutical and biotechnology company which focuses on the production and development of medicines and vaccines for immunology, cardiology, endocrinology, and neurology. As of Q3 2023, the company has managed to maintain hedge fund sentiment around its stock, with 73 funds long the stock. Pfizer Inc. (NYSE:PFE) beat EPS estimates of -$0.34 by $0.17, posting earnings of -$0.17 per share in Q3 2023.
Pfizer Inc. (NYSE:PFE) is a great stock pick for investors interested in generating a stable income from the stock as it is a high-quality dividend growth stock and spells an excellent investment opportunity owing to the robust quality of the company’s financial position, favorable future growth projections, and a sustainable dividend yield of 5.38%. Although the stock has underperformed on an year-over-year basis, it is imperative to understand that 2022 was an anomaly as it arrived at the tail-end of the COVID-19 pandemic. When compared to pre-vaccination levels, revenue for the company has actually increased by 8% and profitability metrics remain solid. Hence, the stock is currently undervalued, making for an amazing entry point for the long-term investor.
2. Merck & Co. (NYSE:MRK)
Hedge Fund Holdings: 85
Based in Rahway, New Jersey, Merck & Co. (NYS:MRK) is an American multinational pharmaceutical company which focuses on the production and development of medicines, vaccines, biologic therapies, and animal health products. Investor interest around Merck & Co. (NYSE:MRK) skyrocketed in Q3 2023, with 85 funds long the stock, up from 78 in the preceding quarter.
On November 9, Deutsche Bank analyst James Shin initiated coverage of Merck & Co. (NYSE:MRK) with a Buy rating and a $115 price target. According to Shin, the company is a legacy drugmaker with a strong track record of impressive margins and robust growth. It has impressive growth prospects, making it an ideal stock for retirees and investors looking for a stable income, as the company is expected to have a 5.5% dividend hike in early December. Although the stock has underperformed in the short-term, the analyst reiterated that he remains bullish on the stock long-term, primarily due to its diverse product portfolio which positions it favorably for future growth and a strong market presence. Shin estimates that the stock is about 50% undervalued.
1. Eli Lilly & Co. (NYSE:LLY)
Hedge Fund Holdings: 102
Headquartered in Indianapolis, Indiana, Eli Lilly & Co. (NYSE:LLY) is an American pharmaceutical company, with an office presence in more than 18 countries globally. The company primary revenue driver are the diabetes drugs Humalog and Trulicity. On November 20, Cantor Fitzgerald analyst Louise Chen maintained an Overweight rating on the stock, and reiterated the price target of $630. According to the analyst, Eli Lilly & Co. (NYSE:LLY) has one of the highest market caps in the pharmaceutical space. Although the stock is significantly priced, the company’s average 5-year forward growth of 17% is a good justification for its current valuation. Furthermore, the company’s anti-obesity drug Zepbound received approval in the US and recommended approval in the EU, and is projected to deliver $150 billion in revenue by 2030. This is expected to result in substantial additional wealth creation for interested shareholders. Investor interest around Eli Lilly & Co. (NYSE:LLY) has peaked in Q3 2023, with 102 funds long the stock, up from 87 funds in the preceding quarter.
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