5 Healthcare Stocks to Buy According to Billionaire Mario Gabelli

3. CVS Health Corporation (NYSE: CVS)

Number of Hedge Fund Holders: 67 

CVS Health Corporation (NYSE: CVS) is a Rhode Island-based company that provides healthcare services. It is ranked third on our list of 10 healthcare stocks to buy according to Mario Gabelli. Securities filings show that GAMCO Investors owned 267,131 shares in the company at the end of the second quarter of 2021 worth $22 million, representing 0.18% of the portfolio. 

On August 31, investment advisory CVS Health Corporation kept an Overweight rating on CVS Health Corporation (NYSE: CVS) stock and raised the price target to $114 from $99, noting that the firm was a top pick for the rest of the year. 

Out of the hedge funds being tracked by Insider Monkey, Chicago-based firm Harris Associates is a leading shareholder in CVS Health Corporation (NYSE: CVS) with 8.5 million shares worth more than $713 million. 

In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and CVS Health Corporation (NYSE: CVS) was one of them. Here is what the fund said:

“We sold our position in CVS Health Corp. to allocate capital to companies with larger margins of safety. During the five years that we owned CVS Health Corp., the company acquired Aetna. At the time, we also owned Aetna, and we believed the combination of the two companies would create additional value. After the acquisition, its business performance has been disappointing. We reevaluated our assumptions and determined its value has not grown.”