5 Best Vaccine Stocks To Buy Now

In this article, we will discuss the 5 best vaccine stocks to buy now. If you want to explore similar stocks, you can also read 10 Best Vaccine Stocks To Buy Now.

5. Amgen, Inc. (NASDAQ:AMGN)

Number of Hedge Fund Holders: 55

Amgen, Inc. (NASDAQ:AMGN) is a large, diversified biotech company with multiple blockbuster drugs and a strong pipeline of new drugs in development. Amgen, Inc. (NASDAQ:AMGN) has a strong track record of success in clinical trials and commercializing new drugs. The company has a large, global sales force and a strong brand. The stock is one of the best vaccine stocks to buy now.

On October 20, Amgen, Inc. (NASDAQ:AMGN) announced that it has acquired ChemoCentryx for $52 per share in cash, for a transaction amount of $3.7 billion. ChemoCentryx is a biopharmaceutical company that is involved in the research and development of therapies for inflammatory and autoimmune diseases and cancer.

On October 12, Barclays analyst Carter Gould revised his price target on Amgen, Inc. (NASDAQ:AMGN) to $234 from $236 and maintained an Equal Weight rating on the shares. This October, Morgan Stanley analyst Matthew Harrison upgraded Amgen, Inc. (NASDAQ:AMGN) to Overweight from Equal Weight and raised his price target on the stock to $279 from $257.

At the close of Q2 2022, 55 hedge funds were bullish on Amgen, Inc. (NASDAQ:AMGN) and held stakes worth $2.17 billion in the company. This is compared to 56 positions in the previous quarter with stakes of $1.88 billion. As of June 30, Two Sigma Advisors is the top investor in Amgen, Inc. (NASDAQ:AMGN) and has stakes worth $404 million in the company.

Here is what Smead Capital Management had to say about Amgen Inc. (NASDAQ:AMGN) in its third-quarter 2022 investor letter:

“Two things are very noticeable right off the top. First, sometimes you have to be happy losing less in a bear market environment so that you have more of your capital to grow in the next bull market. We are never really happy losing money. Second, 2022 is likely to be our third year of existence as a fund to lose money for the year. This year would join 2008 and 2018 in this undistinguished category. Our biggest detractors was dominated by  Amgen (NASDAQ:AMGN). Consumer/investor fears about media and e-commerce hit WBD and EBAY and profit taking in Amgen came from early 2022 strength.”

4. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 70

Eli Lilly and Company (NYSE:LLY) is a major pharmaceutical company based in the United States with over 100 years of history. The company has a diversified product portfolio and a strong track record of delivering shareholder value. As of October 28, the stock is offering a forward dividend yield of 1.10% and the company has free cash flows of $4.94 billion. Eli Lilly and Company (NYSE:LLY) is ranked high among the best vaccine stocks to buy now.

This September, Morgan Stanley analyst Terence Flynn reiterated an Overweight rating and his $412 price target on Eli Lilly and Company (NYSE:LLY). On September 30, Argus analyst Jasper Hellweg raised his price target on Eli Lilly and Company (NYSE:LLY) to $360 from $315 and reiterated a Buy rating on the shares.

At the end of Q2 2022, 70 hedge funds were long Eli Lilly and Company (NYSE:LLY) and held stakes worth $6.71 billion. This is compared to 53 positions in the preceding quarter with stakes worth $5.07 billion. The hedge fund sentiment for the stock is positive. As of June 30, Fisher Asset Management is the most prominent shareholder in Eli Lilly and Company (NYSE:LLY) and has stakes worth $1.92 billion in the company.

Here is what Baron Funds had to say about Eli Lilly and Company (NYSE:LLY) in its third-quarter 2022 investor letter:

“In pharmaceuticals, our largest investment is in Eli Lilly and Company (NYSE:LLY). Lilly’s new diabetes drug Mounjaro is off to a strong start. In addition, Mounjaro may be approved for obesity next year. In clinical trials, Mounjaro delivered up to 22.5% average weight loss in adults with obesity and has the potential to be a top-selling drug. Lilly also has a drug in development for Alzheimer’s disease in the same class as Lecanemab, a drug being developed by Biogen and Eisai that slowed the rate of cognitive decline in a late-stage clinical trial. Lilly is not facing any significant near-term patent expirations and we think the company should be able to grow revenue and earnings at attractive rates through the end of the decade and beyond.”

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

Number of Hedge Fund Holders: 79

Merck & Co., Inc. (NYSE:MRK) is a global leader in the pharmaceutical industry with a strong track record of delivering shareholder value. The company has a diversified product portfolio with blockbuster drugs in multiple therapeutic areas, including cancer, HIV, and diabetes. Merck & Co., Inc. (NYSE:MRK) has a strong pipeline of new drugs in development, which should drive future growth. The company has a strong balance sheet and generates significant cash flow, which it uses to invest in R&D and pay dividends. Moreover, the company is currently trading at an attractive valuation. As of October 28, Merck & Co., Inc. (NYSE:MRK) has a trailing twelve-month PE ratio of 14.92 and is awarding shareholders with a forward dividend yield of 2.82%. The company has free cash flows of $14.3 billion and is one of the best vaccine stocks to invest in right now.

Wall Street sees material upside to Merck & Co., Inc. (NYSE:MRK). This October, Cantor Fitzgerald analyst Louise Chen raised her price target on Merck & Co., Inc. (NYSE:MRK) to $120 from $107 and reiterated an Overweight rating on the shares. On October 28, Morgan Stanley analyst Terence Flynn raised his price target on Merck & Co., Inc. (NYSE:MRK) to $100 from $91 and maintained an Equal Weight on the shares.

At the close of Q2 2022, 79 hedge funds were eager on Merck & Co., Inc. (NYSE:MRK) and held stakes worth $6.11 billion in the company. This is compared to 84 hedge funds in the first quarter of 2022 with takes worth $5.86 billion. As of June 30, Fisher Asset Management is the leading investor in the company and has disclosed a stake of $1.1 billion.

Here is what Carillon Tower Advisers had to say about Merck & Co., Inc. (NYSE:MRK) in its second-quarter 2022 investor letter:

“Merck & Co., Inc. (NYSE:MRK) reported a strong first quarter and raised its financial guidance for 2022. The company also continues to benefit from the recent rotation into pharmaceuticals, which historically has been a more defensive industry.”

2. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 70

Pfizer Inc. (NYSE:PFE) is a leading global diversified healthcare company that develops and manufactures prescription medicines, vaccines, and consumer health products. The company has a strong history of dividend growth, and the company’s dividend is well-covered by earnings. The company is a leader in the development of innovative new medicines, and its products are backed by a large and growing body of clinical data. Pfizer Inc. (NYSE:PFE) is one of the best vaccine stocks to buy now.

Shares of Pfizer Inc. (NYSE:PFE) have pulled back in 2022 and are presenting an attractive entry point for investors. As of October 28, the stock is trading at a PE multiple of 8x and is yielding 3.51%. The company has a strong cash position and has reported free cash flows of $28.4 billion.

On October 11, SVB Securities analyst David Risinger revised his price target on Pfizer Inc. (NYSE:PFE) to $48 from $53 and maintained a Market Perform rating on the shares. This October, Barclays analyst Carter Gould adjusted his price target on Pfizer Inc. (NYSE:PFE) to $44 from $50 and reiterated an Equal Weight rating on the shares.

At the end of Q2 2022, Pfizer Inc. (NYSE:PFE) was spotted on 70 hedge fund portfolios. These funds disclosed stakes of $2.80 billion in the company. As of June 30, AQR Capital Management is the top investor in Pfizer Inc. (NYSE:PFE) and has stakes worth $553.9 million in the company.

Here is what Diamond Hill Capital had to say about Pfizer Inc. (NYSE:PFE) in its third-quarter 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.”

1. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 83

Johnson & Johnson (NYSE:JNJ) is an industry leader and has a proven track record of successfully executing its growth strategies. The company is also a dividend aristocrat, and its dividend yield sits at 2.62%, as of October 28. The company has a defensive business model and investors can rely on it for both growth and income. Johnson & Johnson (NYSE:JNJ)  is ranked high among the best vaccine stocks to buy now.

On October 18, Johnson & Johnson (NYSE:JNJ) announced market-beating earnings for the fiscal third quarter of 2022. The company reported earnings per share of $2.55 and outperformed EPS estimates by $0.06. The company generated a revenue of $23.79 billion and beat expectations by $357.9 million.

On October 19, Bernstein analyst Lee Hambright revised his price target on Johnson & Johnson (NYSE:JNJ) to $190 from $194 and maintained a Market Perform rating on the shares. This October, Barclays analyst Matt Miksic took coverage of Johnson & Johnson (NYSE:JNJ) with an Equal Weight rating and a $175 price target.

At the close of Q2 2022, 83 hedge funds were long Johnson & Johnson (NYSE:JNJ) and held stakes worth $6.76 billion in the company. Of those, GQG Partners was the most prominent shareholder and disclosed stakes of $1.16 billion in the company.

Here is what Distillate Capital Partners LLC had to say about Johnson & Johnson (NYSE:JNJ) in its second-quarter 2022 investor letter:

“Johnson & Johnson was among the 2 largest trims at around 1% each. Each stock was up 1% in the quarter compared to the 16% price decline for the S&P 500 and the positions were reduced as the valuations became somewhat less appealing, though still attractive enough to warrant inclusion.”

You can also take a look at Best Value Stocks To Buy According To Warren Buffett and Best Stocks For Beginners with Little Money.

Follow Insider Monkey on Twitter