Top 10 ADR Stocks To Buy According to Hedge Funds

3. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)

Number of Hedge Fund Holders: 44

Stock Upside Potential: 55.63%

Headquartered in Dublin, Ireland, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is one of the top 10 ADR stocks to buy according to hedge funds for exposure in the healthcare sector. The company identifies, develops, and commercializes pharmaceutical products for unmet medical needs.

In 2021, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) expanded its footprint into cannabis-based drugs with the acquisition of G.W. Pharmaceuticals for $7.2 billion. Its lead product is Epidiolex, used to treat seizures associated with Lennox-Gastaut and Dravet syndromes. This drug utilizes cannabidiol or CBD.

Jazz Pharmaceuticals plc (NASDAQ:JAZZ) has been in a robust growth phase, with its revenues increasing steadily from $2.36 billion in 2020 to $3.83 billion by 2023. It has also transitioned from a financial deficit to a profit-making status in the previous year.

Jazz Pharmaceuticals plc (NASDAQ:JAZZ) hit a significant milestone in the second quarter, with revenues rising above the $1 billion mark to $1.02 billion. The milestone was driven by strong execution and increased demand for key growth drivers, Xywav, Epidiolex, and Rylaze. It also bounced back to profitability with a net income of $168.6 million or $2.49 a share.

With the company’s oncology revenues growing by 10% yearly, it is arguably one of the ADR stocks to watch in the healthcare sector. The stock trades at a discount with a price-to-earnings multiple of 5 compared to an average P/E of 34 for the healthcare sector.

Based on 16 Wall Street analysts, the average price target on Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is $172.73, implying a 55.63% upside potential from current levels.

The stock of Jazz Pharmaceuticals plc (NASDAQ:JAZZ) was held by 44 hedge funds at the end of Q2 2024 in the Insider Monkey database, with the most significant stake of 1.43 million shares held by Ryan Wilder’s Vestal Point Capital, valued at over $160.10 million.