5 Best Pharma Stocks To Buy Now

In this article, we discuss the 5 best pharma stocks to buy now. You can go through our detailed analysis of the pharmaceutical sector and its outlook this year, and go directly to read the 11 Best Pharma Stocks To Buy Now.

5. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 73

Pfizer Inc. (NYSE:PFE) is a U.S.-based multinational pharmaceutical and biotechnology corporation, with its headquarters located at The Spiral in Manhattan, New York City. Established in 1849 by German entrepreneurs Charles Pfizer and Charles F. Erhart, the company is renowned for its research, development, and production of medicines and vaccines across a wide spectrum of medical fields, encompassing immunology, oncology, cardiology, endocrinology, and neurology. Particularly noteworthy, in 2022, Pfizer Inc. (NYSE:PFE)’s standout product was the COVID-19 vaccine Comirnaty, which generated an impressive $37.8 billion in alliance revenues and direct sales.

The U.S. Food and Drug Administration (FDA) has granted approval for Pfizer Inc. (NYSE:PFE)’s vaccine, known as Penbraya, marking the first vaccine capable of safeguarding against five distinct categories of life-threatening bacteria responsible for conditions such as meningitis and blood poisoning. Pfizer Inc. (NYSE:PFE) presently offers two vaccines for the prevention of this disease.

As of the close of Q2 2023, 73 hedge funds in Insider Monkey’s database owned stakes in Pfizer Inc. (NYSE:PFE), which remained unchanged from the previous quarter. These stakes have a total worth of over $1.5 billion. With roughly 7 million shares, Diamond Hill Capital was the company’s leading stakeholder in Q2.

4. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 74

AbbVie Inc. (NYSE:ABBV) operates as a specialized biopharmaceutical company committed to the discovery, development, manufacturing, and distribution of medications tailored to address chronic and complex illnesses. The company gained renown for its flagship drug, Humira, a vital treatment for conditions such as moderate-to-severe rheumatoid arthritis and Crohn’s disease.

With a remarkable record of 50 years of continuous dividend growth, the American pharmaceutical giant currently offers a dividend yield of 4.08% as of October 24.

At the conclusion of the second quarter in 2023, data from Insider Monkey’s database, tracking 74 hedge funds, indicated holdings in AbbVie Inc. (NYSE:ABBV), reflecting a slight decrease from the 75 hedge funds in the previous quarter. The combined value of these holdings exceeds $2.37 billion.

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

Number of Hedge Fund Holders: 78

Merck & Co., Inc. (NYSE:MRK) is a renowned American multinational pharmaceutical company with its headquarters situated in Rahway, New Jersey. Originally the American arm of the Merck Group, founded in Germany in 1668, it carries the name of its former parent company. Operating as Merck Sharp & Dohme or MSD outside the United States and Canada, the company holds a prominent position in the pharmaceutical industry, specializing in the development of medicines, vaccines, biologic therapies, and animal health products.

With a continuous streak of dividend growth spanning 11 years, the company provides a quarterly dividend of $0.73 per share, presenting a dividend yield of 2.82% as of October 24.

Insider Monkey dug through 910 hedge funds for their second quarter of 2023 investments to discover that 78 had invested in Merck & Co., Inc. (NYSE:MRK), up from 75 in the previous quarter. Cliff Asness’ AQR Capital Management is the biggest shareholder, owning a $331.8 million stake.

Carillon Eagle Growth & Income Fund made the following comment about Merck & Co., Inc. (NYSE:MRK) in its Q2 2023 investor letter:

“Merck & Co., Inc. (NYSE:MRK) presented positive clinical data for a new drug in its oncology pipeline, announced an acquisition that was viewed favorably by investors, and reported strong first-quarter financial results while also increasing its earnings guidance for 2023.”

2. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 87

Eli Lilly and Company (NYSE:LLY) is an American pharmaceutical enterprise, with its headquarters situated in Indianapolis, Indiana, and a presence in 18 other countries. Established in 1876, the company bears the name of its founder, Colonel Eli Lilly, who was a pharmaceutical chemist and a veteran of the American Civil War.

The company extends a quarterly dividend of $1.13 per share and has maintained a consistent pattern of dividend growth for the past ten consecutive years. Eli Lilly and Company (NYSE:LLY) has been providing dividends to shareholders without interruption for an impressive 138 years. As of October 24, the stock presents a dividend yield of 0.77%.

Of the 910 hedge funds in Insider Monkey’s database, 87 funds owned stakes in Eli Lilly and Company (NYSE:LLY) in Q2 2023, jumping from 72 in the previous quarter. The collective value of these stakes is more than $5 billion.

Madison Sustainable Equity Fund made the following comment about Eli Lilly and Company (NYSE:LLY) in its Q3 2023 investor letter:

“Eli Lilly and Company (NYSE:LLY) again moved higher in the third quarter. The stock has continued to be fueled by its diabetes franchise, in particular Mounjaro, which has been approved for use in diabetes but is also expected to be approved in obesity later this year. We are also waiting for approval of donanemab for Alzheimer’s which should occur by year end.”

1. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 88

Johnson & Johnson (NYSE:JNJ), established in 1886, stands as a prominent American multinational corporation celebrated for its groundbreaking advancements in medical devices, pharmaceuticals, and consumer packaged goods. Notably, the pharmaceutical division of the company boasts an impressive track record of maintaining dividend growth for over 62 years. As of October 24, Johnson & Johnson (NYSE:JNJ) offers a quarterly dividend of $1.19 per share, resulting in a dividend yield of 3.14%.

On October 17, Johnson & Johnson (NYSE: JNJ) announced adjusted earnings and revenue that exceeded the forecasts of Wall Street, and subsequently increased its full-year guidance due to robust sales in both its pharmaceutical and medical devices divisions. The pharmaceutical company also disclosed net income of $4.31 billion, equivalent to $1.69 per share. This figure remained consistent with the net income of $4.31 billion, or $1.62 per share, reported for the corresponding period in the previous year.

In the second quarter of 2023, the number of hedge funds tracked by Insider Monkey with holdings in Johnson & Johnson (NYSE:JNJ) increased to 88, up from 86 in the prior quarter. The collective investments by these hedge funds surpass a total value of $4.1 billion. The leading hedge fund investor in Johnson & Johnson (NYSE:JNJ) is Bridgewater Associates, managed by Ray Dalio, with a substantial stake valued at approximately $526.58 million.

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