5 Best Stocks to Buy According to John Paulson

1. Bausch Health Companies Inc. (NYSE: BHC)

Paulson’s Stake Value: $820,131,000
Percentage of John Paulson’s 13F Portfolio: 18.83%
Number of Hedge Fund Holders: 42

Bausch Health Companies Inc. (NYSE: BHC) is a multinational specialty pharmaceutical company. The company was founded in 1959 and stands first on the list of 10 best stocks to buy according to John Paulson. Bausch shares have returned 52.13% to investors during the course of the past 12 months resulting in a $12.9 billion market capitalization. 

On July 7, Bausch + Lomb, the global eye health business of Bausch Health, declared that it finished registration in its final study of NOV03 in treating patients with dry eye disease. On July 6, Spin-Off Research initiated a coverage on Bausch Health Companies Inc. (NYSE: BHC) with a “Buy” rating and price target of $35. On May 25, the company announced that it issued 4.875% senior secured notes due 2028, whose principal amount is $1.6 billion. The proceeds will be used for fund redemption of outstanding Notes due 2024.

The hedge fund chaired by John Paulson holds 25.84 million shares in the company worth over $820 million. Out of the hedge funds being tracked by Insider Monkey, Icahn Capital LP is a leading shareholder in Bausch Health Companies Inc. (NYSE: BHC), with 34.11 million shares worth more than $1billion. Paulson is the second largest stakeholder after Icahn.

Miller Value Partners, in their first quarter 2021 investor letter, mentioned Bausch Health Companies Inc. (NYSE: BHC). Here is what the fund said:

“Bausch Health Companies (BHC) climbed 55% during the period. Glenview (6% owner) sent a letter to the company in early February arguing the company has not acted to unlock shareholder value and urging the company to sell its eye care business. Shortly after, activist investor Carl Icahn disclosing a 7.83% stake in the company. The company responded to the filing saying that they remain committed to splitting the business into two parts, but are open to pursuing all opportunities. The company reported strong 4Q results with better-than-expected 2021 guidance. 4Q revenue came in at $2,213M slightly ahead of consensus of $2,165M and EPS of $1.34 beat consensus of $1.12. The company guided for 2021 revenue of $8.6-8.8B coming in ahead of expectations of $8.55B with EBITDA of $3.4-3.55B ahead of $3.46B estimated. The company announced the transition of Paul Herendeen to an advisory role to be succeeded by Sam Eldessouky, previously senior vice president, controller and chief accounting officer. Finally, the company announced the sale of Amoun Pharmaceutical for $740M, which was relatively in line with estimates and should help support debt reduction targets ahead of the planned spin-off of Bausch + Lomb eye care business.”

You can also take a peek at 10 Best Stocks to Buy According to Chris James’ Engine No. 1 and 10 Best Stocks to Invest Your $1000 

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