10 Best Diabetes Stocks To Buy Now

Published September 26, 2022 at 9:03 am EDT Updated August 31, 2026 at 11:56 am EDT

In this article, we discuss the 10 best diabetes stocks to buy now.

The diabetes market has grown in the past few years as organizations and individuals in the private and public domains make significant investments in the sector to generate awareness about early and precise disease diagnosis and treatment. This is because diabetes has become an increasingly prevalent disease in both emerging and developed economies. Per a report by Global Market Insights, the diabetes care devices market alone, which does not take into account the drugs market for the diseases, will be worth $80 billion by the end of this decade.

The use of efficient devices to treat diabetes, such as vials and syringes, insulin pens, and insulin pumps to deliver insulin subcutaneously, partly due to increasing incidences of diabetes among the elderly, is one of the reasons that may encourage the faster adoption of diabetes products. Another contributing factor to the diabetes market is the emerging self-monitoring and self-administration trends that are likely to create new growth avenues for the diabetes care devices industry and act as a catalyst for pharma stocks.

Some of the top stocks that benefit from diabetes care drugs and devices include Pfizer Inc. (NYSE:PFE), Eli Lilly and Company (NYSE:LLY), and AbbVie Inc. (NYSE:ABBV). According to a study by Pharma Web, the use of non-insulin treatments for the treatment of diabetes is also on the rise. These include oral medications, lifestyle changes, and other treatments. As diabetes remains one of the fastest-growing diseases across the world, the biggest healthcare companies are likely to keep pouring billions into the development of drugs for treatment.

Our Methodology

The companies that operate in the pharma sector and have diabetes drugs in the market or under development were selected for the list. In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks are also discussed. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.

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Best Diabetes Stocks To Buy Now

10. Novartis AG (NYSE:NVS)

Number of Hedge Fund Holders: 22

Novartis AG (NYSE:NVS) researches, develops, manufactures, and markets healthcare products worldwide. It is one of the premier diabetes stocks to invest in. On September 22, the company announced that it will focus on five therapeutic areas — cardiovascular, immunology, neuroscience, solid tumors, and hematology — as part of a larger transformation plan to become a significant player in the United States pharma market in the next five years. The firm said it intends to stick to the plan despite recent laws to control drug prices.

On September 7, investment advisory Kepler Cheuvreux upgraded Novartis AG stock to Buy from Hold with a price target of CHF 90. Analyst David Evans issued the ratings update.

Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Novartis AG, with 11 million shares worth more than $950 million.

Just like Pfizer Inc., Eli Lilly and Company, and AbbVie Inc., Novartis AG is one of the best diabetes stocks to buy now according to hedge funds.

9. Novo Nordisk A/S (NYSE:NVO)

Number of Hedge Fund Holders: 32

Novo Nordisk A/S (NYSE:NVO) is a healthcare company that engages in the research, development, manufacture, and marketing of pharmaceutical products. It is one of the top diabetes stocks to invest in. On September 22, the firm revealed that data from a phase 3 trial of Tresiba, a once-daily therapy for diabetes being developed by the firm, showed that more people with type 2 diabetes achieved blood sugar targets. The study evaluated once-weekly insulin icodec versus once-daily insulin degludec in 526 people with type 2 diabetes.

On August 4, investment advisory Barclays kept an Overweight rating on Novo Nordisk A/S stock and lowered the price target to DKK 825 from DKK 875. Analyst Emmanuel Papadakis issued the ratings update.

At the end of the second quarter of 2022, 32 hedge funds in the database of Insider Monkey held stakes worth $4.4 billion in Novo Nordisk A/S, compared to 31 the preceding quarter worth $4.5 billion.

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Novo Nordisk A/S was one of them. Here is what the fund said:

“We added to our position in Novo Nordisk A/S, a leading global biopharmaceutical company headquartered in Denmark that specializes in treatments for diabetes, obesity, and other chronic diseases. We wrote about Novo Nordisk in last quarter’s letter. We continue to believe Novo Nordisk’s diabetes and anti-obesity franchise will drive attractive revenue and earnings growth for many years to come. We think both Novo Nordisk and competitor Eli Lilly and Company (which we also own in the Fund) can be successful in these large markets.”

8. Tandem Diabetes Care, Inc. (NASDAQ:TNDM)

Number of Hedge Fund Holders: 32

Tandem Diabetes Care, Inc. (NASDAQ:TNDM) is a medical device company that designs, develops, and commercializes various products for people with insulin-dependent diabetes. The firm is among the best diabetes stocks to invest in. In early June, the company revealed data that showed the benefits of using a new insulin pump being developed by the firm that uses cutting-edge Control-IQ technology. The company said the patient-reported outcomes from an ethnically diverse cohort of 1,306 adults showed significant improvements in life quality.

On August 4, Craig-Hallum analyst Alexander Nowak maintained a Buy rating on Tandem Diabetes Care, Inc. stock and lowered the price target to $105 from $156, noting that Q2 marked a much different tone from Tandem than the prior period.

At the end of the second quarter of 2022, 32 hedge funds in the database of Insider Monkey held stakes worth $147.8 million in Tandem Diabetes Care, Inc., compared to 42 in the preceding quarter worth $385.6 million.

7. Insulet Corporation (NASDAQ:PODD)

Number of Hedge Fund Holders: 34

Insulet Corporation (NASDAQ:PODD) develops, manufactures, and sells insulin diabetes systems for people with insulin-dependent diabetes. The company is one of the most prominent diabetes stocks to invest in. In late August, the firm announced that it had won regulatory approval from authorities in the United States for the Omnipod 5 Automated Insulin Delivery System for use in children aged 2 to 5 years with type 1 diabetes. The product is the first tubeless AID system available for preschool children in the US.

On August 5, Canaccord analyst Kyle Rose maintained a Buy rating on Insulet Corporation stock and raised the price target to $290 from $250, noting the launch of new products by the firm will magnify the competitive advantage of the pharmacy channel.

Among the hedge funds being tracked by Insider Monkey, California-based investment firm D1 Capital Partners is a leading shareholder in Insulet Corporation, with 1.2 million shares worth more than $269 million.

In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Insulet Corporation was one of them. Here is what the fund said:

“Health care has always been a core foundation of the portfolio and we have been diversifying our health care exposure to include services and solutions beyond our traditional overweight to biopharmaceuticals and managed care. We first purchased Insulet Corporation, a leading provider of insulin pumps for diabetes patients, in the fourth quarter of 2021, and we have aggressively added to the position since then. The company is currently the only meaningful manufacturer of patch pumps, the preferred form factor for many patients as compared to traditional tubed pumps. We believe Insulet has a long runway for growth given its large and underpenetrated market, which is only one-third penetrated in Type 1 diabetes and low-single-digit penetrated in the insulin- intensive Type 2 diabetes population. Additionally, we see the launch of the company’s next generation offering, Omnipod 5, which received FDA clearance in January, as an accelerant to growth. Insulet has strong gross margins and is profitable today, though we still see room for significant operating margin expansion ahead.”

6. AstraZeneca PLC (NASDAQ:AZN)

Number of Hedge Fund Holders: 47

AstraZeneca PLC (NASDAQ:AZN) is a biopharmaceutical company that focuses on the discovery, development, manufacturing, and commercialization of prescription medicines. The firm features on the list of best diabetes stocks to invest in. One of the premier diabetes drugs of the firm is Exenatide, approved for use in the US for adult patients with type 2 diabetes. Last year, a study related to the drug showed that patients who received a once-weekly dose of Exenatide showed significantly reduced levels of HbA1c, a blood sugar measure.

On August 29, Argus analyst Jasper Hellwe upgraded AstraZeneca PLC stock to Buy from Hold with a price target of $75, noting the firm had a range of new drugs approved in the past few months.

At the end of the second quarter of 2022, 47 hedge funds in the database of Insider Monkey held stakes worth $4.9 billion in AstraZeneca PLC, compared to 45 in the previous quarter worth $4.6 billion.

Along with Pfizer Inc., Eli Lilly and Company, and AbbVie Inc., AstraZeneca PLC is one of the best diabetes stocks to buy now according to hedge funds.

In its Q1 2022 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and AstraZeneca PLC was one of them. Here is what the fund said:

“AstraZeneca performed strongly and reported encouraging fourth-quarter earnings and initial 2022 guidance. AstraZeneca also announced positive clinical data for two drugs within its oncology business that should serve as important long-term growth drivers.”

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 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, 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 was one of them. Here is what the fund said:

“Abbott Laboratories 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 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, 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 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, 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 was one of them. Here is what the fund said:

“Eli Lilly and Company 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. 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. 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., 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. 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. 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. 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. 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., 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. 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., 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.

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