We recently published a list of 12 Best Global Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Novartis AG (NYSE:NVS) stands against other best global stocks to buy according to hedge funds.
The United States has long been a magnet for global businesses seeking to tap into its robust economy and dynamic financial markets. Several key economic policies and initiatives have been instrumental in encouraging these enterprises to remain active participants in US stock markets. The US offers the world’s largest consumer market, with a Gross Domestic Product (GDP) of $25 trillion and a population of 335 million. Household spending accounts for nearly a third of global consumption, making it an attractive destination for businesses aiming to expand their market reach. The regulatory environment is conducive to starting and operating a business, ensuring that companies, regardless of origin, compete on an even playing field. This transparency and predictability in the legal system bolster investor confidence and encourage sustained engagement in US stock markets.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
To further promote foreign direct investment (FDI), the US Department of Commerce launched the SelectUSA program. Since its inception, SelectUSA has facilitated more than $250 billion in investments, leading to the creation or retention of over 230,000 jobs. By providing actionable information and serving as a liaison between investors and economic development organizations, SelectUSA plays a pivotal role in attracting and retaining global businesses in the US market. The US has also implemented tax reforms aimed at creating a more business-friendly environment. The country continues to invest in infrastructure and technological innovation, providing businesses with the necessary tools and resources to thrive.
Access to cutting-edge technology, a skilled workforce, and a culture of innovation fosters an environment where companies can grow and remain competitive. Despite these advantages, global businesses must navigate challenges such as economic and political uncertainties. Recent reports indicate a shift in investment preferences, with some investors reconsidering their concentrated investments in US markets due to factors like stretched valuations and geopolitical tensions. For instance, a significant reduction in US stock holdings has been observed, with nearly 90% of investors viewing US equities as overvalued, per a recent Reuters report. This trend underscores the importance of continuous policy evaluation to maintain the attractiveness of US stock markets.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
The companies that have large businesses and are primarily based outside the United States were shortlisted. They were then ranked according to hedge fund sentiment. The top twelve were selected for this list. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A doctor holding a microscope in front of a laboratory sample of healthcare products.
Novartis AG (NYSE:NVS)
Number of Hedge Fund Holders: 33
Novartis AG (NYSE:NVS) manufactures pharmaceutical and consumer healthcare products. For the fiscal year 2024, net sales reached $50.3 billion, reflecting an 11% increase (12% at constant currency), driven primarily by a 14-percentage-point contribution from volume growth. In mid-December, BioAge and Novartis (NYSE:NVS) announced their partnership on the discovery of new therapeutic targets for the treatment of age-related diseases and conditions. Under this agreement, BioAge will receive $20 million as an upfront payment and will be able to receive up to $530 million in milestones. In February, The Wall Street Journal reported that Novartis CEO Vas Narasimhan was taking a highly selective approach toward potential acquisitions in the obesity treatment sector. The firm is actively scouting for next-generation obesity drug candidates to expand its portfolio and capitalize on emerging market opportunities.
Overall, NVS ranks 11th on our list of best global stocks to buy according to hedge funds. While we acknowledge the potential of NVS as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a stock that is more promising than NVS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
