5 Best Medical Stocks To Invest In According to Hedge Funds

In this piece, we will take a look at the five best medical stocks to invest in according to hedge funds. If you want to take a deeper look at what medical stocks are all about, then read 14 Best Medical Stocks To Invest In According to Hedge Funds.

5. Danaher Corporation (NYSE:DHR)

Number of Q4 2023 Hedge Fund Shareholders: 90

Danaher Corporation (NYSE:DHR) is a backend medical stock that helps laboratories and research diagnose diseases, develop products, and run other operations. The firm’s management warned investors in January 2024 that the year will be a slow one for the industry as it continues to return to Earth from a pandemic era high.

Insider Monkey dug through 933 hedge fund Q4 2023 shareholdings to find 90 Danaher Corporation (NYSE:DHR) investors. Ken Fisher’s Fisher Asset Management owned the largest stake which was worth $977 million.

4. Merck & Co., Inc. (NYSE:MRK)

Number of Q4 2023 Hedge Fund Shareholders: 98

Merck & Co., Inc. (NYSE:MRK) is another American healthcare giant. However, despite its heft, the firm is not only doing well on the financial front by having beaten analyst EPS estimates in all four of its latest quarters, but its shares are also rated Strong Buy on average and have an average share price target of $133.18.

During Q4 2023, 98 out of the 933 hedge funds polled by Insider Monkey had invested in Merck & Co., Inc. (NYSE:MRK). Ken Fisher’s Fisher Asset Management was the largest shareholder due to its $1.4 billion stake.

3. Eli Lilly and Company (NYSE:LLY)

Number of Q4 2023 Hedge Fund Shareholders: 102

Eli Lilly and Company (NYSE:LLY) is a healthcare behemoth that is making all the news these days due to its weight loss drug Mounjaro. The drug continued to make the news in February 2024 after it was revealed that Mounjaro might also end up helping people with severe liver diseases.

As of December 2023 end, 102 out of the 933 hedge funds profiled by Insider Monkey had bought and owned the firm’s shares. Ken Fisher’s Fisher Asset Management owned the biggest Eli Lilly and Company (NYSE:LLY) stake among these that was worth $2.6 billion.

2. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Q4 2023 Hedge Fund Shareholders: 111

Thermo Fisher Scientific Inc. (NYSE:TMO) is a medical devices and instruments company headquartered in Waltham, Massachusetts. Its shares slumped in January 2024 after its latest financial results saw the firm warn about slowing sales ahead.

111 out of the 933 hedge funds covered by Insider Monkey’s Q4 2023 research had bought the firm’s shares. Thermo Fisher Scientific Inc. (NYSE:TMO)’s largest hedge fund shareholder is Chris Hohn’s TCI Fund Management due to its $1.6 billion investment.

1. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Q4 2023 Hedge Fund Shareholders: 113

UnitedHealth Group Incorporated (NYSE:UNH) is one of the biggest healthcare plan providers in the world. Not only are its shares rated Strong Buy on average, but analysts have also priced in a sizeable upside through an average share price target of $599.98.

By the end of 2023’s fourth quarter, 113 out of the 933 hedge funds tracked by Insider Monkey had bought and owned UnitedHealth Group Incorporated (NYSE:UNH)’s shares. Rajiv Jain’s GQG Partners owned the biggest stake which was worth $1.8 billion.

Disclosure: None. You can also take a look at 11 Best Gold Stocks For Inflation and Top 12 Oil and Gas Stocks To Invest In According To Hedge Funds.

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