In this article, we will take a look at the 5 Best Low Beta Stocks to Buy. If you want to see more stocks in this list, go to the 11 Best Low Beta Stocks to Buy
5. Pfizer Inc. (NYSE:PFE)
No. of Hedge Fund Holders: 77
Pfizer Inc. (NYSE:PFE) is a research-based, global biopharmaceutical company. The company discovers, develops, manufactures, markets, sells and distributes biopharmaceutical products worldwide.
Pfizer Inc.’s (NYSE:PFE) Q3 2022 revenues came in at $22.6 billion. There was a fall of 2% operationally over Q2 2022 principally due to exceptionally strong growth achieved in Q2 2022.
Over the course of next 18 months, the company expects to have up to 19 new products or indications in the market. The company has already begun co-promotion or commercialization earlier this year for 5 of these new products or indications. The company has raised and narrowed its FY 2022 adjusted diluted EPS guidance from $6.30 – $6.45 to $6.40 – $6.50.
Pfizer Inc. (NYSE:PFE) has been ranked 5th on our list of 11 best low beta stocks to buy.
Pfizer Inc. (NYSE:PFE) was in 77 hedge funds’ portfolios at the end of Q3 2022, compared to 70 in the preceding quarter. At the end of the third quarter, combined value of their stakes was $2.44 billion.
The Goldman Sachs Group gave $47.00 price target on the shares of the company on November 8.
Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” third-quarter 2022 investor letter. Here is what it said:
“Also among our bottom contributors were health care products manufacturer Abbott Labs, global pharmaceutical company Pfizer Inc. (NYSE:PFE), media and technology giant Alphabet, and insurance company American International Group (AIG). Although Pfizer continues to report strong performance of its core drugs, sales of its COVID vaccine and treatment have likely peaked and sales are expected to decline going forward. We remain optimistic about the company long term as we believe management is taking the company in the right direction, focusing R&D, and making strategic acquisitions with profits generated from COVID vaccine sales.”
4. AbbVie Inc. (NYSE:ABBV)
No. of Hedge Fund Holders: 80
AbbVie Inc. (NYSE:ABBV) is a research-based global biopharmaceutical company. The company uses its expertise and unique approach to develop and market advanced therapies which address some of the serious diseases.
AbbVie Inc. (NYSE:ABBV) and HotSpot Therapeutics, Inc. have announced exclusive worldwide collaboration and option to license agreement for HotSpot’s discovery-stage IRF5 program for treatment of autoimmune diseases.
In Q3 2022, the company saw healthy momentum in its key immunology assets, Skyrizi and Rinvoq. This strong performance and strength from other growth enablers within its diverse portfolio mitigated impact of temporary economic headwinds on the company’s aesthetics products. It has delivered Q3 2022 net revenues of $14.812 billion, exhibiting 3.3% growth year-over-year on reported basis.
AbbVie Inc. (NYSE:ABBV) confirms midpoint of its FY 2022 adjusted diluted EPS guidance range and has narrowed the range from $13.76 – $13.96 to $13.84 – $13.88. It has declared dividend increase of 5.0% year-over-year.
Credit Suisse Group started coverage on AbbVie Inc. (NYSE:ABBV) on November 17. The group has issued an “Outperform” rating and has set $170.00 as target price on the stock.
As per Insider Monkey’s database, 80 hedge funds remained bullish on AbbVie Inc. (NYSE:ABBV) at the end of Q3 2022.
Here is what Baron Funds, an investment management company, said about AbbVie Inc. (NYSE:ABBV) in its third-quarter 2022 investor letter:
“AbbVie Inc. (NYSE:ABBV) is a drug developer best known for Humira, an immunosuppressant that is the best-selling drug of all time. Given outsized key product risk (patent cliff and generic launches beginning in 2023), AbbVie has broadened its pipeline, highlighted by its Allergan acquisition. Shares fell on results that missed consensus and indications that legacy franchises were outperforming newer product launches, calling into question AbbVie’s long-term strategy. With promising assets in the pipeline and its robust cash flow profile, we believe AbbVie will grow well into the future.”
3. Merck & Co., Inc. (NYSE:MRK)
No. of Hedge Fund Holders: 82
Merck & Co., Inc. (NYSE:MRK) is an American multinational pharmaceutical company. The company develops and produces medicines, vaccines, biologic therapies and animal health products. It focuses on becoming premier research-intensive biopharmaceutical company.
The company ranks 3rd on our list of 11 Best Low Beta Stocks to Buy.
Merck & Co., Inc. (NYSE:MRK) and Imago BioSciences, Inc. (NASDAQ:IMGO) announced that they have entered into a definitive agreement as per which former’s subsidiary will acquire the latter for $36.00 per share in cash for an approximate total equity value of $1.35 billion.
The company has posted worldwide sales of $15.0 billion in Q3 2022, exhibiting 14% improvement year-over-year. Results of the company stemmed from sustained strong business momentum in critical growth enablers and investment and progress in pipeline. Merck & Co., Inc. (NYSE:MRK) has raised and narrowed expected FY 2022 worldwide sales to $58.5 billion – $59.0 billion, exhibiting full-year growth of 20% – 21%. It has lowered the expected FY 2022 GAAP EPS to $5.68 – $5.73.
At the end of Q3 2022, 82 hedge funds in Insider Monkey’s database were long on Merck & Co., Inc. (NYSE:MRK).
Stock market experts believe that the company has huge growth potential given their current line-up of blockbuster drug Keytruda, Gardasil, Bridion and possible future drugs that can come either through their pipeline or acquisitions.
Carillon Tower Advisers released its second quarter 2022 investor letter in which it mentioned Merck & Co., Inc. (NYSE:MRK). Here is what it has to say:
“Merck & Co., Inc. (NYSE:MRK) reported a strong first quarter and raised its financial guidance for 2022. The company also continues to benefit from the recent rotation into pharmaceuticals, which historically has been a more defensive industry.”
2. Johnson & Johnson (NYSE:JNJ)
No. of Hedge Fund Holders: 85
Johnson & Johnson (NYSE:JNJ) is the world’s largest and most diverse healthcare firm. It carries out its operations into 3 business segments: Consumer Health, Pharmaceutical and Medical Devices.
Johnson & Johnson (NYSE:JNJ) and Abiomed, Inc. (NASDAQ:ABMD) have entered into a definitive agreement under which the former will acquire the latter, through a tender offer, all outstanding shares for an upfront payment of $380.00 per share in cash at an enterprise value of approximately $16.6 billion, including cash acquired.
Morgan Stanley covered Johnson & Johnson (NYSE:JNJ) and raised its target price on shares of the company from $170.00 to $178.00 in a report on December 1, 2022.
The company’s EVP Ashley Mcevoy sold 73,323 shares in a transaction November 30, 2022 at an average price of $175.47 for a total value of $12,865,986.81. Post this sale, EVP now directly owns 41,813 shares of the company’s stock worth $7,336,927.11.
Business of the company is fairly diverse as it generates billions in revenue from its consumer health, pharmaceutical, and med-tech businesses. Interestingly, the company’s pharmaceutical segment accounts for more than half of its overall sales. Annually, its revenue from the pharma business over the trailing 12 months came in at approximately $53.7 billion. However, it expects that its annual sales from this business should top $60 billion by 2025.
Of 920 hedge funds tracked by Insider Monkey at the end of the third quarter of 2022, 85 hedge funds were long Johnson & Johnson (NYSE:JNJ), with a total stake value of $5.46 billion.
Distillate Capital Partners LLC, an investment management firm, published its second-quarter 2022 investor letter in which it mentioned Johnson & Johnson (NYSE:JNJ). Here is what the fund 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.”
1. Activision Blizzard, Inc. (NASDAQ:ATVI)
No. of Hedge Fund Holders: 96
Activision Blizzard, Inc. (NASDAQ:ATVI) was formed in 2008 as a result of the merger of Activision, which was one of the largest console video game publishers, and Blizzard, one of largest PC video game publishers. As a result, the combined firm has been categorised as one of the world’s largest video game publishers.
Activision Blizzard, Inc. (NASDAQ:ATVI) has released its results for the third quarter of 2022, and generated net revenues of $1.78 billion against $2.07 billion for the third quarter of 2021.
Microsoft Corporation (NASDAQ:MSFT) intends to acquire Activision Blizzard, Inc. (NASDAQ:ATVI) for $95.00 per share in all-cash transaction. This transaction is expected to close in Microsoft Corporation’s (NASDAQ:MSFT) fiscal year ending June 30, 2023, and has been approved by the Boards of Directors of both the companies and by stockholders of Activision Blizzard, Inc. (NASDAQ:ATVI).
At the end of Q3 2022, 96 elite hedge funds reported owning stakes in Activision Blizzard, Inc. (NASDAQ:ATVI) worth $9.07 billion. In the preceding quarter, 84 hedge funds held stakes worth $9.24 billion.
Analysts at Robert W. Baird recently initiated coverage on Activision Blizzard, Inc. (NASDAQ:ATVI) and gave an “Outperform” rating with the price target of $95.00 on the stock on November 22, 2022.
The company’s COO Daniel Alegre decided to sell 10,000 shares in a transaction dated September 9, 2022.
Cooper Investors, an asset management company, released its second quarter 2022 investor letter and mentioned Activision Blizzard, Inc. (NASDAQ:ATVI). Here is what the fund said:
“Activision Blizzard, Inc. (NASDAQ:ATVI) – our investment preceded news that the company was under investigation for workplace bullying. When it became clear management had misled the market on the extent of the problem we sold, led by our principles of Responsible Investing. We did not benefit from the subsequent M&A premium paid by Microsoft.”
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