In this article, we discuss the 5 safe healthcare stocks for a retirement stock portfolio. If you want to read about some more healthcare stocks, go directly to Retirement Stock Portfolio: 11 Safe Healthcare Stocks to Consider.
5. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 77
Pfizer Inc. (NYSE:PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It is one of the best healthcare stocks for a retirement stock portfolio. On November 4, Swiss healthcare regulator Swissmedic announced that a lab investigation on the vials of Pfizer/ BioNTech, an Omicron boosters linked to bubble formation, did not indicate any issues with the vaccine. The regulator said that the batch in question can be used for vaccines.
On November 2, Barclays analyst Carter Gould maintained an Equal Weight rating on Pfizer Inc. (NYSE:PFE) stock and raised the price target to $49 from $44, noting that the company’s third quarter delivered a solid beat and raise due to Comirnaty, a COVID vaccine.
Among the hedge funds being tracked by Insider Monkey, Connecticut-based firm AQR Capital Management is a leading shareholder in Pfizer Inc. (NYSE:PFE) with 10.7 million shares worth more than $467.6 million.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Pfizer Inc. (NYSE:PFE) was one of them. Here is what the fund said:
“While the level of general turnover abated as we progressed through 2021, it remained high in one area: post-COVID-19 recovery plays. The concept behind this investment thesis was, and still is, straightforward: with the advent of effective vaccines, the path from pandemic to endemic is just a matter of time. As this transition occurs, the estimated excess savings of over $2 trillion built up on U.S. consumer balance sheets will unlock dramatic pent-up demand for experiences, especially global travel. This investment case seemed especially compelling when the Pfizer vaccine positively surprised markets in November 2020. As a result, we made post-COVID-19 stocks (which were trading well below our estimate of recovery value) a sizable theme within the portfolio. We understood this to be a more aggressive tilt in positioning because it required a major improvement in demand to catalyze fundamentals and drive price toward higher business values. While we accepted that recovery would not be smooth and that it would take time to deploy vaccines both domestically and globally, we decided that recovery was the logical path of least resistance and we were being well compensated for these risks.”
4. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 82
Merck & Co., Inc. (NYSE:MRK) operates as a healthcare company worldwide. It is one of the top healthcare stocks for a retirement stock portfolio. On November 1, Merck & Co. noted that it has entered into a 10-year strategic partnership with California-based Veeva Systems to help Kenilworth, a cancer drugmaker, to reduce operational costs and optimize experience. This collaboration was built on an existing 12-year partnership.
On November 1, Guggenheim analyst Seamus Fernandez maintained a Buy rating on Merck & Co., Inc. (NYSE:MRK) stock and raised the price target on Merck to $111 from $104, noting the raised sales forecasts for certain medicines.
Among the hedge funds being tracked by Insider Monkey, Camas, Washington-based investment firm Fisher Asset Management is a leading shareholder in Merck & Co., Inc. (NYSE:MRK) with 12 million shares worth more than $1 billion.
In its Q2 2022 investor letter, Chartwell Investment Partners, an asset management firm, highlighted a few stocks and Merck & Co., Inc. (NYSE:MRK) was one of them. Here is what the fund said:
“In the Dividend Equity accounts, the three best performers in Q2 includes Merck (NYSE:MRK, 3.6%), up 12.0%. Merck, like other pharma companies, is in a defensive business, but the stock also did well as peak-sales estimates for their flagship drug, Keytruda, have gone up (JPMorgan estimates $32 billion in sales by 2026).”
3. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 85
Johnson & Johnson (NYSE:JNJ) researches and develops, manufactures, and sells various products in the healthcare field. It is one of the premier healthcare stocks for a retirement stock portfolio. On October 18, Johnson & Johnson reported better than expected earnings of the third quarter but also said that it may cut some jobs due to the rising inflation.
On October 17, investment advisory Barclays initiated coverage of Johnson & Johnson (NYSE:JNJ) with an Equal Weight rating and $175 price target. Analyst Matt Miksic issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Camas, Washington-based firm Fisher Asset Management is a leading shareholder in Johnson & Johnson (NYSE:JNJ) with 5.9 million shares worth more than $967.3 million.
In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and Johnson & Johnson (NYSE:JNJ) was one of them. Here is what the fund said:
“Johnson & Johnson (NYSE:JNJ) is currently our largest position and a long-standing holding. The majority of the group’s sales comes from its collection of pharmaceutical franchises, but a large majority (~45%) comes from its collection of medical device businesses and its consumer brands.
Here’s how JNJ make and spend a dollar of revenues: As of 2021, about 55 cents of that dollar comes from its pharmaceutical sales – sales of drugs to pharmacies and distributors – while 30 cents come from the sale of medical devices, such as surgery equipment and orthopaedics. The rest of that dollar in sales comes from sales of JNJ’s consumer brands such as Listerine mouthwash, Nicorette nicotine tablets and Neutrogena cosmetics (…read more)
2. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 110
United Group Incorporated (NYSE:UNH) operates as a diversified health care company in the United States. It is one of the elite healthcare stocks for a retirement stock portfolio. On October 14, UnitedHealth Group said it had made a profit of $5.2 billion in the third quarter on a strong performance of its Optum and UnitedHealth plans. On October 27, the company expanded its individual and family plan footprint in the health insurance marketplace by offering affordable benefits in 22 states for 2023.
On October 18, Deutsche Bank analyst George Hill maintained a Buy rating on UnitedHealth Group Incorporated (NYSE:UNH) stock and raised the price target to $615 from $569, noting that company posted solid third quarter results on broad-based strength as membership growth remains robust and value based arrangements continue to expand.
At the end of the third quarter of 2022, 110 hedge funds in the database of Insider Monkey held stakes worth $10.3 billion in United Group Incorporated (NYSE:UNH), compared to 91 in the preceding quarter worth $10.1 billion.
In its Q2 2022 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and United Group Incorporated (NYSE:UNH) was one of them. Here is what the fund said:
“UnitedHealth Group Incorporated (NYSE:UNH) reported solid quarterly results and raised 2022 guidance modestly. Additionally, managed care is another industry that is viewed as defensive in the current environment, which helped support UnitedHealth and its peer group.”
1. Thermo Fisher Scientific Inc. (NYSE:TMO)
Number of Hedge Fund Holders: 92
Thermo Fisher Scientific Inc. (NYSE:TMO) offers life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and services worldwide. It is one of the major healthcare stocks for a retirement stock portfolio. On October 31, Thermo Fisher Scientific unveiled that it is acquiring The Binding Site, a UK-based diagnostic product maker for £2.25 billion from private equity firm Nordic Capital in an all-cash transaction.
On November 1, Baird analyst Catherine Ramsey Schulte maintained an Outperform rating on Thermo Fisher Scientific Inc. (NYSE:TMO) stock and lowered the price target to $665 from $695, noting that the company’s Specialty Diagnostics segment typically gets the least investor attention/interest but a deal on it could be accretive to both overall revenue and growth margins.
At the end of the third quarter of 2022, 92 hedge funds in the database of Insider Monkey held stakes worth $6.8 billion in Thermo Fisher Scientific Inc. (NYSE:TMO), compared to 93 in the preceding quarter worth $7.8 billion.
In its Q2 2022 investor letter, Stewart Asset Management, an asset management firm, highlighted a few stocks and Thermo Fisher Scientific Inc. (NYSE:TMO) was one of them. Here is what the fund said:
“Recently we initiated two new investments. One in Thermo Fischer Scientific (NYSE:TMO), a supplier to the life sciences industry. We have followed the company for many years and the recent downturn in share price gave us a good entry price at which to invest. Thermo has had strong earnings growth for many years and is led by a superb team. The company’s recent acquisitions make it a full-service supplier to the biopharma and biotech industries.”
You can also take a peek at 10 Growth Stocks with Upside Potential and 14 Best Agriculture Stocks To Buy Now.
