5 Best Weight Loss Stocks to Buy Now

1. Merck & Co. (NYSE:MRK)

Hedge Fund Holdings: 79

Based in Kenilworth, New Jersey, Merck & Co. (NYSE:MRK) is an American pharmaceutical company. The company currently collaborates with multiple weight management enterprises to facilitate weight loss on a large scale. The weight loss business model of Merck & Co. (NYSE:MRK) is based on providing weight management interventions by way to merging a structured diet, behavior coaching, monitoring, and physical activity to achieve clinically meaningful weight loss. As of the second quarter of 2022, Merck & Co. (NYSE:MRK) posted an EPS of $1.87. beating estimates of $1.70 by $0.17. Despite major macroeconomic headwinds, the company continued on its growth trajectory, with net sales increasing by 14.3% year-over-year. Cost inflation has been offset by hikes in product prices, with all business sectors contributing to organic sales growth of 6.6%.

On October 10, Guggenheim analyst Seamus Fernandez upgraded Merck & Co. (NYSE:MRK) to a Buy rating from Neutral, with a $104 price target on the shares. According to the analyst, the company is well-positioned to beat 2023 estimates with margin-driven potential upside to consensus, largely powered by the successful patent of the company’s Januvia drug and key growth in sales of the company’s flagship products, Keytruda and Gardasil. The analyst also noted that the company could see higher earnings if the STELLAR trial is successful this quarter, provided that management has already stated that they have the capacity to produce the drug on a global scale with a competitive cost structure.

Here is what Carillon Tower Advisers had to say about Merck & Co. (NYSE:MRK) in their Q2 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.”

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