In this article, we discuss 5 best drug stocks to buy now. If you want to see more drug stocks to invest in, click 15 Best Drug Stocks To Buy Now.
5. Evotec SE (NYSE:EVO)
Number of Hedge Fund Holders: 1
Evotec SE (NYSE:EVO) is a German drug discovery, pharmaceutical, and biotechnology company that produces drug candidates for diabetes, fibrosis, infectious diseases, CNS diseases, oncology, pain and inflammation, immunology, rare diseases, respiratory diseases, and women’s health.
On May 13, Deutsche Bank analyst Falko Friedrichs upgraded Evotec SE (NYSE:EVO) to Buy from Hold with a price target of EUR 30, down from EUR 33. The company’s drug pipeline “is completely priced out” at current share levels, the analyst told investors in a research note.
Evotec SE (NYSE:EVO) posted FY results on April 21, posting a revenue of €618 million, up 23.4% year-over-year. The company also has a very strong liquidity position with €858.2 million in cash. Evotec SE (NYSE:EVO) has recently partnered with pharma peers Sernova and Bristol Myers Squibb to commercialize different medical therapies.
According to Insider Monkey’s database, 1 hedge fund was bullish on Evotec SE (NYSE:EVO) at the end of March 2022, compared to 3 funds in the preceding quarter.
4. Organon & Co. (NYSE:OGN)
Number of Hedge Fund Holders: 27
Organon & Co. (NYSE:OGN) is a New Jersey-based healthcare company that offers women’s health, cardiovascular, immunology, and pain management drugs to wholesalers and retailers, hospitals, government agencies, and managed health care providers.
Goldman Sachs analyst Chris Shibutani on April 27 initiated coverage of Organon & Co. (NYSE:OGN) with a Buy rating and a $40 price target, implying 26% upside from present levels. The value currently attributed to Organon & Co. (NYSE:OGN)’s women’s health business does not fully appreciate its ability to position the fertility products portfolio to take advantage of the positive secular trends and feasible market dynamics, the analyst told investors in a research note. He sees growth higher than historical levels and consensus estimates.
Among the hedge funds tracked by Insider Monkey, 27 funds were long Organon & Co. (NYSE:OGN) at the end of March 2022, compared to 31 funds in the prior quarter. Cliff Asness’ AQR Capital Management is the largest shareholder of the company, with 3.12 million shares worth $109 million.
3. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders: 45
AstraZeneca PLC (NASDAQ:AZN) is a UK-based biopharmaceutical company that manufactures and commercializes prescription medicines for oncology, immunology, and rare diseases. AstraZeneca PLC (NASDAQ:AZN)’s Q1 revenue of $11.39 billion outperformed consensus by $423.24 million.
On May 24, Danske Bank analyst Caroline Baner initiated coverage of AstraZeneca PLC (NASDAQ:AZN) with a Buy rating and a 13,100 GBp price target. The analyst sees “durable” growth drivers and visibility through 2030. AstraZeneca PLC (NASDAQ:AZN)’s medicines in oncology, rare diseases, and collaboration projects have U.S. exclusivity till 2030 and are notable sources of revenue, the analyst told investors.
Among the hedge funds tracked by Insider Monkey, 45 funds reported owning stakes in AstraZeneca PLC (NASDAQ:AZN) at the end of Q1 2022, up from 42 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with 20.8 million shares worth $1.3 billion.
2. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
Number of Hedge Fund Holders: 38
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is a Massachusetts-based biopharmaceutical company that develops and commercializes novel therapeutics based on ribonucleic acid interference.
On May 2, H.C. Wainwright analyst Patrick Trucchio raised the price target on Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) to $430 from $400 and maintained a Buy rating on the shares. The analyst said the post-earnings selloff in the shares has created a “compelling” entry point ahead of APOLLO-B results. He also believes that Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)’s hepatitis B virus program is best-in-class.
According to Insider Monkey’s Q1 data, 38 hedge funds were bullish on Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), with collective stakes exceeding $1 billion. Kurt Von Emster’s VenBio Select Advisor is the leading shareholder of the company, with 1.30 million shares worth $212.2 million.
1. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
Johnson & Johnson (NYSE:JNJ) is an American multinational healthcare corporation that operates via Pharmaceutical, Consumer Health, and MedTech segments. Johnson & Johnson (NYSE:JNJ) is also a rich dividend stock. 2022 marks the 60th consecutive year of dividend hikes by the company, which merits its inclusion in the S&P 500 dividend kings list.
On May 23, SVB Leerink analyst David Risinger initiated coverage of Johnson & Johnson (NYSE:JNJ) with an Outperform rating and a $200 price target. The analyst believes that Johnson & Johnson (NYSE:JNJ) should outperform given its capacity to deliver consistent earnings growth and carry out value-adding mergers and acquisitions activity. Apart from its Consumer division, which Johnson & Johnson (NYSE:JNJ) will exit in 2023, the analyst expects 5-year CAGR revenue growth in low-single digits and earnings growth in the mid-single digits.
According to Insider Monkey’s data, 83 hedge funds were bullish on Johnson & Johnson (NYSE:JNJ) at the end of March 2022, with combined stakes amounting to $7.40 billion. Arrowstreet Capital held the leading position in the company, comprising 6.65 million shares worth $1.17 billion.
You can also take a look at 10 Growth ETFs to Buy Now and 10 Oil Tanker Stocks That Pay Dividends.
