In this article, we discuss the 5 biotech stocks to buy according to billionaire Ken Fisher. If you want to read our detailed analysis of these stocks, go directly to the 10 Biotech Stocks to Buy According to Billionaire Ken Fisher.
5. Edwards Lifesciences Corporation (NYSE:EW)
Number of Hedge Fund Holders: 43
Edwards Lifesciences Corporation (NYSE:EW) provides healthcare equipment for critical care. Regulatory filings show that Fisher Asset Management owned 6.2 million shares in Edwards Lifesciences Corporation (NYSE:EW) at the end of the third quarter of 2021 worth over $727 million.
Edwards Lifesciences Corporation (NYSE:EW) recently posted earnings for the third quarter, beating market predictions on earnings per share by $0.02. The revenue over the period was $1.3 billion, up 14% year-on-year.
At the end of the third quarter of 2021, 43 hedge funds in the database of Insider Monkey held stakes worth $2.1 billion in Edwards Lifesciences Corporation (NYSE:EW), down from 47 in the preceding quarter worth $2 billion.
In its Q3 2021 investor letter, Wedgewood Partners highlighted a few stocks and Edwards Lifesciences Corporation (NYSE:EW) was one of them. Here is what the fund said:
“Edwards Lifesciences returned to a double-digit 2-year growth rate during the quarter. Lifesaving medical procedures, such as severe aortic stenosis valve replacement, got back to some semblance of normal in the late stages of the pandemic. The Company is still in the early years of leading the charge of replacing open surgical procedures with minimally invasive transcatheter therapies. As medical visits continue to return to normal, Edwards should be able to expand its lead, particularly after a major competitor has had issues with product efficacy. Edwards should be able to maintain its market leadership by focusing its higher than peer average research and development budget on just a handful of product lines.”
4. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 61
Intuitive Surgical, Inc. (NASDAQ:ISRG) markets surgical equipment and accessories. According to the latest data, Fisher Asset Management owned 1.3 million shares in Intuitive Surgical, Inc. (NASDAQ:ISRG) at the end of September 2021 worth $1.3 billion, representing 0.84% of the portfolio of the fund.
On October 20, investment advisory Wells Fargo maintained an Overweight rating on Intuitive Surgical, Inc. (NASDAQ:ISRG) stock and raised the price target to $381 from $354, appreciating the third quarter earnings results of the firm.
At the end of the third quarter of 2021, 61 hedge funds in the database of Insider Monkey held stakes worth $3.5 billion in Intuitive Surgical, Inc. (NASDAQ:ISRG), up from 60 the preceding quarter worth $3.4 billion.
In its Q1 2021 investor letter, Ensemble Capital, an asset management firm, highlighted a few stocks and Intuitive Surgical, Inc. (NASDAQ:ISRG) was one of them. Here is what the fund said:
“Notable detractors to the Fund’s returns this quarter (included) Intuitive Surgical. Intuitive Surgical’s (6.3% weight in the Fund) growth slowed in 2020 as COVID hit the brakes on many elective surgeries. Given continued COVID-related risks in the US and Europe in 2021, it’s still unclear as to when elective surgeries recover to more normal levels. As such, hospitals may be holding off on planned surgical robot investments until demand rebounds. That said, in Asia, where COVID has been well contained, Intuitive Surgical’s procedures and systems utilizations improved, which bodes well for recovery in the US and EU. Most procedures can’t be delayed indefinitely or canceled, so we continue to expect a resumption of strong, durable growth as the pandemic recedes.”
3. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 62
Eli Lilly and Company (NYSE:LLY) develops and markets human pharmaceuticals. Securities filings show that Fisher Asset Management owned 6.5 million shares in Eli Lilly and Company (NYSE:LLY) at the end of the third quarter of 2021 worth $1.5 billion.
On December 3, the US Food and Drug Administration announced that it had authorized the emergency use of a COVID-19 vaccine developed by Eli Lilly and Company (NYSE:LLY) and AbCellera in newborns. The vaccine was previously allowed for those aged 12 years or older.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Eli Lilly and Company (NYSE:LLY) with 1.6 million shares worth more than $376 million.
In its Q1 2020 investor letter, Amana Mutual Funds Trust highlighted a few stocks and Eli Lilly and Company (NYSE:LLY) was one of them. Here is what the fund said:
“Even so, Lilly stood out as one, among a handful, of companies that registered a positive return for the first quarter. In January, Lilly reported excellent fourth quarter results, with revenue growing at a faster clip than over the first three quarters of the year. Lilly is also financially strong with debt equivalent to only two times EBITDA3 and 12% of market capitalization. Johnson & Johnson, while trailing Lilly, shares many of the same characteristics and also outperformed.”
2. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 63
Abbott Laboratories (NYSE:ABT) is an Illinois-based healthcare company. Fisher Asset Management owned 8.3 million shares in Abbott Laboratories (NYSE:ABT) at the end of September 2021 worth $989 million.
In earnings results for the third quarter, posted on October 20, Abbott Laboratories (NYSE:ABT) reported earnings per share of $1.40, beating market predictions by $0.46. The revenue over the period was $10.9 billion, up 22% year-on-year.
Among the hedge funds being tracked by Insider Monkey, Ohio-based investment firm Diamond Hill Capital is a leading shareholder in Abbott Laboratories (NYSE:ABT) with 6.2 million shares worth more than $732 million.
In its Q2 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Abbott Laboratories (NYSE:ABT) was one of them. Here is what the fund said:
“Abbott Laboratories was the lone detractor in the quarter as the company preannounced that revenue and earnings this year would be below their previous guidance. We still expect the company to grow earnings more than 20% this year and continue double-digit earnings growth in the years to come. However, weakness in COVID-19 testing revenue is primarily responsible for the guidance reduction. Abbott is a leader in multiple types of COVID-19 diagnostic tests, and the largely successful vaccine rollout globally is leading to less COVID testing than the company expected. Two years ago, these tests obviously accounted for $0 in revenue but recently accounted for nearly $10 billion in annualized revenues as of the fourth quarter of 2020. We have expected COVID testing revenues to decline sequentially every quarter and eventually level out at less than $1 billion per year. We are not surprised by the current reality, but the decline has been more rapid than what management had expected.
Abbott is a diversified medical products company with likely strong growth to come from its core businesses outside of COVID testing— our investment thesis was not dependent on pandemic related revenue. While the reduction in guidance is atypical for Abbott’s conversative management team, we do not believe it changes our long-term growth assumptions or the investment case in Abbott.”
1. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 77
Merck & Co., Inc. (NYSE:MRK) operates as a healthcare company. At the end of the third quarter of 2021, Fisher Asset Management owned 10.6 million shares in Merck & Co., Inc. (NYSE:MRK) worth $798 million.
Morgan Stanley analyst Matthew Harrison has an Equal Weight rating on Merck & Co., Inc. (NYSE:MRK) stock with a price target of $82. In a recent investor note, the analyst noted that Merck was likely to face tough competition in the vaccine market as a new virus variant spread.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Merck & Co., Inc. (NYSE:MRK) with 6.5 million shares worth more than $493 million.
In its Q1 2021 investor letter, Artisan Partners highlighted a few stocks and Merck & Co., Inc. (NYSE:MRK) was one of them. Here is what the fund said:
“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 10 Russell 2000 Basic Materials Dividend Stocks to Buy and 10 Utilities Stocks with Over 3% Dividend Yield.
