Pfizer Inc. (PFE) Acquires Seagen for $43 Billion, Strengthens Oncology Leadership.
We have just published a list of 10 Best Health Stocks to Buy According to Hedge Funds. In this article, we will look at where Pfizer Inc. (NYSE:PFE) stands up against some of the best health care stocks to buy according to hedge funds.
Resilience and Growth in the US Health Care Sector
Investing in health care funds is often seen as a hedge against tough economic times. This is because, even in times of financial crisis, people often do not reduce their use of drugs or other necessary health services. The Centers for Medicare and Medicaid Services (CMS) estimates that national health care costs will grow at a rate of 5.6% between 2027 and 2032, with health care spending expected to reach $4.8 trillion. in 2023.
In America, the health sector is expanding. A new analysis has shown that the State’s spending on health care will increase by 7.5% in 2023, exceeding the GDP growth rate in that year. A large portion of the population, approximately 93.1% of Americans, had health insurance last year, which helped boost health spending. The US government has predicted a 5.6% annual growth in health care spending between 2023 and 2032 expected to outpace the 4.3% GDP growth rate.
Managing Challenges and Opportunities in the Global Healthcare Market
The global healthcare industry is growing, with McKinsey predicting profits to grow from $583 billion in 2022 to $800 billion in 2027, at a CAGR of 7%. Despite challenges in 2023 from labor shortages and inflation, 2024 is expected to recover, creating a good investment opportunity. AI investment in healthcare has increased, with $2.8 billion already invested in 2024 and expectations of more than $11 billion by the end of the year. Deloitte’s 2024 outlook highlights high investor confidence, with AI poised to save $360 billion in US healthcare over the next five years through advances in patient care, diagnosis and management.
In 2023, the health care sector faced difficulties as investors turned to higher interest rates, which caused it to lag behind other sectors. However, GLP-1 weight loss drugs have significantly boosted the earnings of some companies. The sector has seen similar performance, with some companies struggling due to tough comparisons after the COVID-19 tax and treatment revenue is expected to exceed $100 billion by 2022. The rise in profits has also put pressure on biotechnology, and suppliers have faced the effects of COVID-19, although suppliers have improved. principles and decisions of opioid cases. However, as the food policy eases the rate, and the final margin is 50 basis points, the health care market is expected to grow.
Our method
For our approach, we have placed the best health care options that we can buy according to hedge funds based on the total number of hedge fund owners from Q2 2024.
“Why are we interested in the stocks that hedge funds accumulate in? The reason is simple: our research has shown that we can outperform the market by mimicking the top picks of hedge funds. Our quarterly strategy quarterly picks 14 small and large stocks each quarter and has returned 275% since May 2014, outpacing its benchmark by 150 percent (see more details here).”
Medical technician wearing protective gloves and mask mixing a biopharmaceutical solution.
Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 84
Pfizer Inc. (NYSE:PFE) is a global pharmaceutical company that develops, manufactures, and markets prescription drugs, vaccines, and consumer health products. The company’s core business is developing and distributing drugs to treat a variety of medical conditions, from common to rare diseases.
The status of Pfizer Inc. (NYSE:PFE) in the cancer treatment market has been greatly boosted by the recent $43 billion purchase of Seagen, a biotechnology company that specializes in antibody-drug conjugates (ADCs). It is expected that by 2030, this move will improve Pfizer’s oncology portfolio and generate more than $10 billion in risk-adjusted revenue.
Pfizer Inc. (NYSE:PFE) reported Q2 2024 revenue of $13.3 billion, reflecting year-over-year growth of 3%, its first increase since Q4 2022. Key growth drivers included a 14% tax increase in its non-Covid area. , strong performance in its Oncology division post-Seagen, and contributions from new product launches. Adjusted earnings per share (EPS) were $0.60, down from last year but above analyst estimates, which were impacted by $1.3 billion in one-time costs. Pfizer is facing various changes in performance, with 2022 earnings rising due to COVID-19 sales, followed by a 41% drop in 2023 as normal demand. However, it achieved a 7% operating growth excluding the COVID-19 products and received nine FDA approvals in 2023, which is expected to drive future growth. The company’s ongoing efforts to improve costs aim to save $5.5 billion by 2027.
As of Q2 2024, 84 hedge fund owners we tracked the shares that held the stock with Citadel Investment Group being one of the largest participants with 29,590,600 shares worth $827,944,988. Based on a review of 18 Wall Street analysts, the stock has a Strong Buy rating. Wall Street analysts are predicting Pfizer’s 12-month average price range of $32.77, with a high of $45.00 and a low of $27.00. This represents an increase of 11.39% from the current price of $29.42.
In general, PFE 5th level among the best health care stocks to buy according to hedge funds. While we accept the potential of PFE as an investment, our confidence lies in the belief that AI stocks have the greatest promise to bring high returns, and we do so in the short term. If you’re looking for an AI stock that’s more promising than PFE but trades for less than 5 times its earnings, check out our report on low price of AI stock.
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Description: None. This article was originally published on Insider Monkey.
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