5 Best Sectors To Invest In Heading Into 2023

3. Biotechnology: Pharmaceutical Preparation 

The global pharmaceutical market is worth approximately $1.25 trillion. The pharmaceutical manufacturing market is forecasted to grow at a CAGR of around 15.9% from 2022 to 2030 and expected to be worth around $1,599.9 Billion by 2030. Among the hedge funds tracked by Insider Monkey, Pfizer Inc. (NYSE:PFE) is one of the most prominent biotechnology stocks to invest in.  

On December 9, Pfizer Inc. (NYSE:PFE) declared a $0.41 per share quarterly dividend, a 2.5% increase from its prior dividend of $0.40. The dividend is distributable on March 3, 2023 to shareholders of record on January 27, 2023. The dividend yield on December 12 came in at 3.09%. 

Credit Suisse analyst Trung Huynh on November 17 initiated coverage of Pfizer Inc. (NYSE:PFE) with an Outperform rating and a $55 price target. Pfizer Inc. (NYSE:PFE) has been “impacted adversely” following its COVID vaccine success, but the analyst said his Outperform thesis is not hinged on a single asset, but a combination of pipeline improvements that support growth. 

According to Insider Monkey’s data, 77 hedge funds were bullish on Pfizer Inc. (NYSE:PFE) at the end of September 2022, compared to 70 funds in the earlier quarter. Cliff Asness’ AQR Capital Management is the largest stakeholder of the company, with 10.6 million shares worth $467.5 million. 

Diamond Hill Capital made the following comment about Pfizer Inc. (NYSE:PFE) in its Q3 2022 investor letter:

“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.”