5 Biotech and Pharma Stocks to Buy According to Billionaire Steve Cohen

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

Point72 Asset Management’s Holdings: $179 million

Percentage of Point72 Asset Management’s Portfolio: 0.78%

Number of Hedge Fund Holders: 77

Merck & Co., Inc. (NYSE:MRK) is a pharmaceutical company that provides medicines for humans and animals. Its products target diseases such as cancer, heart problems and diabetes.

Point72 Asset Management held 2.3 million Merck & Co., Inc. (NYSE:MRK) shares as Q3 2021 came to an end. These were worth $179 million and constituted 0.78% of its portfolio. During the same time period, 77 of the 867 hedge funds polled by Insider Monkey had holdings in the company.

Merck & Co., Inc. (NYSE:MRK) brought in $13 billion in revenue and $1.75 in non-GAAP EPS for its third quarter, beating analyst estimates for both. In a November 2021 analyst note, Truist raised the company’s price target to $95, as part of its broader forecast upgrades for the pharmaceutical sector.

Merck & Co., Inc. (NYSE:MRK)’s largest shareholder is Ken Fisher’s Fisher Asset Management who owns 10 million shares worth $798 million.

Merck & Co., Inc. (NYSE:MRK) was mentioned by Artisan Partners in its  Q1 2021 investor letter, which outlined that:

“In Q1, we initiated a position in Merck, a provider of health care solutions including prescription medicines, vaccines, biologic therapies, animal health and consumer care products. We purchased Merck when the stock came under pressure in part on concerns that the newly minted Biden administration could implement regulatory changes and lower drug costs in the pharmaceutical industry. Recent, but anticipated changes to Merck’s management team have also weighed on shares, as have concerns over the company’s heavy reliance on immunotherapy treatment Keytruda. Notably, Merck is not getting much credit from investors for the 60+ programs it has in clinical development, despite having several solid and large new product opportunities. Additionally, the company’s strong balance sheet and robust free cash flow provide it multiple options for future partnerships and acquisitions. While Merck is undergoing a period of transition, we think the company’s fundamentals are strong and believe changes to management should be a catalyst for improvement.”

You can also take a peek at the 10 Best Stocks Under $200 According to Edgar Wachenheim’s Greenhaven Associates and 10 Best REIT Dividend Stocks According to Hedge Funds.

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