5 Best Pharmaceutical Stocks to Invest In

2. Johnson & Johnson (NYSE: JNJ)

Number of Hedge Fund Holders: 88

Johnson & Johnson (NYSE:JNJ) is an American corporation, active in the pharmaceutical field as well as the field of consumer health (including oral care and OTC medications). It has an AAA credit rating from S&P, making it one of the two companies to have the highest S&P credit rating. It is ranked second on our list of 15 best pharmaceutical stocks to invest in. The stock has returned over 20.46% to investors over the course of the past year.

On July 21, Johnson & Johnson (NYSE:JNJ) posted earnings for the second quarter of 2021, reporting earnings per share of $2.48, beating estimates by $0.20. The revenue over the period was around $23.31 billion, up 27.14% year-over-year.

At the end of the second quarter of 2021, 88 hedge funds in the database of Insider Monkey held stakes in the company worth $7.06 billion in Johnson & Johnson (NYSE:JNJ).

Out of the hedge funds being tracked by Insider Monkey, Fundsmith LLP has the most valuable stake in Johnson & Johnson (NYSE:JNJ) as of the end of the second quarter of 2021, worth $1.2 billion, comprising 3.26% of its total 13F portfolio. 

In the Q2 2021 investor letter of Distillate Capital, the fund mentioned Johnson & Johnson (NYSE: JNJ). Here is what the fund said:

“The largest additions in the rebalance, Johnson & Johnson was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”