5 Best Drug Stocks to Buy Now

1. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 83

Johnson & Johnson (NYSE:JNJ) is a New Jersey-based pharmaceutical and consumer healthcare company.

The company is working on spinning off its consumer health division to increase its focus on its high-risk and high-reward pharmaceutical and medical devices divisions. Johnson & Johnson (NYSE:JNJ) is expected to have greater flexibility to invest more in innovation and pursue mergers and acquisitions (M&A) following the restructuring. Furthermore, Johnson & Johnson (NYSE:JNJ) has reported positive combination data in a trial targeted toward the treatment of ulcerative colitis during Q2. In a research note issued on October 5, Joanne Wuensch at Citi gave Johnson & Johnson (NYSE:JNJ) stock a target price of $198, along with a Buy rating.

Distillate Capital Partners LLC shared its outlook on Johnson & Johnson (NYSE:JNJ) in its Q2 2022 investor letter. Here’s what the firm said:

“Johnson & Johnson was among the 2 largest trims at around 1% each. Each stock was up 1% in the quarter compared to the 16% price decline for the S&P 500 and the positions were reduced as the valuations became somewhat less appealing, though still attractive enough to warrant inclusion.”

Johnson & Johnson (NYSE:JNJ) is also one of the best pharmaceutical stocks popular amongst hedge funds. As of Q2 2022, 83 funds held a stake in the company.

You can also take a peek at the Best Alternative Energy Stocks To Buy and the Best Stocks For Dividends.

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