In this article, we will take a look at the 5 healthcare stocks billionaires like the most. To read our analysis of the recent market trends and activity, you can go to the 12 Healthcare Stocks Billionaires Like the Most.
5. Johnson & Johnson (NYSE:JNJ)
Number of Billionaire Holders: 20
Johnson & Johnson (NYSE:JNJ) is one of the largest healthcare companies in the world with a history dating back to more than 135 years. It focuses on the research and development, manufacture, and sale of a broad range of products in the healthcare field across pharmaceuticals, and medical devices.
Johnson & Johnson (NYSE:JNJ) completed the spinoff of its Consumer Health division during the third quarter through an initial public offering of the division as Kenvue Inc. (NYSE:KVUE). The company generated cash proceeds of $13.2 billion through a debt offering and IPO of Kenvue. It retained 9.5% stake in Kenvue.
As of Q3 2023, 84 hedge funds owned shares of Johnson & Johnson (NYSE:JNJ), valued at $4.1 billion. Notable investors included Fisher Asset Management, Bridgewater Associates, and D E Shaw, among others.
4. UnitedHealth Group Inc. (NYSE:UNH)
Number of Billionaire Holders: 21
UnitedHealth Group Inc. (NYSE:UNH) provides health coverage, software, data, and consultancy services. Its health insurance business utilizes technology and data capabilities to help coordinate patient care, improve affordability, analyze cost trends, manage pharmacy benefits, and create a simpler consumer experience.
On October 13, UnitedHealth Group Inc. (NYSE:UNH) released its financial results for the third quarter of 2023. It generated a strong performance during the quarter with total revenue and net income both exceeding Q3 2022 figures by more than 10% at $92.4 billion and $6.0 billion, respectively.
Following the earnings release, RBC Capital raised the firm’s price target on UnitedHealth Group Inc. (NYSE:UNH) shares to $596 from $572 and maintained an ‘Outperform’ rating.
As of Q3 2023, 104 of the 910 hedge funds tracked by Insider Monkey owned shares of UnitedHealth Group Inc. (NYSE:UNH), valued at $11.0 billion. Its largest shareholder was GQG Partners with ownership of 3.2 million shares valued at $1.6 billion.
In its Baron Health Care Fund Q3 2023 investor letter, Baron Funds, an investment management company, made the following comments about UnitedHealth Group Inc. (NYSE:UNH):
“UnitedHealth Group Incorporated is a diversified health and well-being company with $200 billion in revenue that operates across four segments, United Healthcare, Optum Health, OptumInsight, and OptumRX, serving 134 million individuals in all 50 states and more than 125 countries. [. . .] We remain positive on this market-leading managed care company with revenue twice that of its closest competitor. The company continues to gain Medicare Advantage share given attractive and stable benefits and could achieve greater profitability as medical management is deployed across newer, higher acuity lives. We believe UnitedHealth has a broad number of levers at its command and can sustainably deliver 13% to 16% annual longterm earnings growth.”
3. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Billionaire Holders: 21
Sunnyvale, California-based Intuitive Surgical, Inc. (NASDAQ:ISRG) is a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery and develops, manufactures, and markets the da Vinci surgical system.
On October 19, Intuitive Surgical, Inc. (NASDAQ:ISRG) released its financial results for Q3 2023. Its revenues increased by 12% y-o-y to $1.7 billion, while it reported a net income of $416 million. It generated a normalized EPS of $1.46, which exceeded consensus estimates by $0.04.
On November 17, Stifel analyst Rick Wise raised the price target for Intuitive Surgical, Inc. (NASDAQ:ISRG) shares to $350 from $315 and maintained a ‘Buy’ rating.
As of Q3 2023, 21 of the billionaires tracked by Insider Monkey owned Intuitive Surgical, Inc. (NASDAQ:ISRG) shares worth $3.1 billion. Ken Fisher’s Fisher Asset Management was the largest shareholder with ownership of 4.4 million shares valued at $1.3 billion.
In its “Baron Fifth Avenue Growth Fund” Q3 2023 investor letter, Baron Funds, an investment management company, made the following comments about Intuitive Surgical, Inc. (NASDAQ:ISRG):
“Intuitive Surgical, Inc. manufactures and markets the da Vinci Surgical System, a robotic system used for minimally invasive procedures. The stock declined 14.5% during the third quarter due to investor concerns about a slowdown in systems sales and procedures in China, where the government has embarked upon an anti-corruption campaign that may cause disruption in the region. Investors have also reacted to management’s commentary about a potential slowdown in bariatric procedures due to the increased adoption of obesity medications such as Wegovy. We think disruption in China is temporary; meanwhile bariatric procedures represent a small fraction of the overall range of procedures Intuitive targets. We believe the long-term outlook for the company is positive. Procedure growth on Intuitive systems is rising at a solid rate, and we think the business will continue advancing its technological lead as it invests heavily in research and development.”
2. Thermo Fisher Scientific Inc. (NYSE:TMO)
Number of Billionaire Holders: 23
Waltham, Massachusetts-based Thermo Fisher Scientific Inc. (NYSE:TMO) is a leading supplier of analytical instruments, life sciences solutions, specialty diagnostics, laboratory, pharmaceutical and biotechnology services.
On October 17, Thermo Fisher Scientific Inc. (NYSE:TMO) announced to acquire Olink Holding AB (publ) (NASDAQ:OLK), Sweden-based provider of next-generation proteomics solutions, in an all-cash transaction that values Olink at nearly $3.1 billion. Earlier this year in August, the company completed the acquisition of CorEvitas, LLC, a leading provider of regulatory-grade, evidence for approved medical treatments and therapies, from Audax Private Equity, for $912 million in cash.
Following the Q3 2023 financial release on October 25 which showed better than expected normalized EPS figures, RBC Capital analyst Conor McNamara maintained an ‘Outperform’ rating for Thermo Fisher Scientific Inc. (NYSE:TMO) and lowered the price target to $579 from $657. The price target represents a potential upside of nearly 18%.
As of Q3 2023, 109 of the elite hedge funds tracked by Insider Monkey held Thermo Fisher Scientific Inc. (NYSE:TMO) shares, valued at $8.9 billion, which makes it the most commonly owned stock among hedge funds, on our list of 12 healthcare stocks billionaires like the most. Chris Hohn’s TCI Fund Management was its largest hedge fund shareholder with ownership of 3.2 million shares valued at $1.6 billion.
1. Danaher Corporation (NYSE:DHR)
Number of Billionaire Holders: 25
Danaher Corporation (NYSE:DHR) is a global science and technology company providing products and services across life sciences, diagnostics, environmental and applied sectors through more than 20 operating companies. It has operations in more than 60 countries.
On December 6, Danaher Corporation (NYSE:DHR) completed the acquisition of Abcam plc (NASDAQ:ABCM), a protein consumables supplier, in an all-cash transaction implying an enterprise value of nearly $5.7 billion for the target company.
Previously, Danaher Corporation (NYSE:DHR) completed the separation of its Environmental & Applied Solutions segment, through the spin-off of Veralto Corporation. The Veralto stock started trading on the NYSE on October 2.
Danaher Corporation (NYSE:DHR) ranks first on our list of 12 healthcare stocks billionaires like the most. The shares of the company were owned by 25 billionaires with ownership of total shares valued at $4.2 billion according to the Insider Monkey database.
Oakmark Funds, advised by Harris Associates, made the following comments about Danaher Corporation (NYSE:DHR) in its Q3 2023 investor letter:
“Danaher is a global leader in life sciences tools and diagnostics. We are impressed by Danaher’s excellent track record of creating shareholder value through smart capital allocation and world-class operational execution. The company’s business mix has shifted dramatically in recent years following a series of transformative acquisitions and divestitures. We believe these portfolio improvements leave the company attractively positioned in some of the industry’s fastest growing, most profitable niches within life sciences. Near-term headwinds related to the pandemic are overshadowing this attractive long-term outlook, in our view. More specifically, Danaher sells diagnostic tests and critical inputs needed for manufacturing Covid-19 vaccines. As Covid-19 demand has normalized, Danaher experienced sales headwinds and channel destocking, pressuring its stock price. The shares now trade at a discount to both peers and private market transactions, giving us an attractive opportunity to invest in what we view as a high-quality, resilient business at a discounted valuation.”
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