In this article, we discuss the 10 best diabetes stocks to buy now. If you want to read about some more diabetes stocks, go directly to 5 Best Diabetes Stocks To Buy Now.
The diabetes market has grown in the past few years as organizations and individuals in the private and public domains make significant investments in the sector to generate awareness about early and precise disease diagnosis and treatment. This is because diabetes has become an increasingly prevalent disease in both emerging and developed economies. Per a report by Global Market Insights, the diabetes care devices market alone, which does not take into account the drugs market for the diseases, will be worth $80 billion by the end of this decade.
The use of efficient devices to treat diabetes, such as vials and syringes, insulin pens, and insulin pumps to deliver insulin subcutaneously, partly due to increasing incidences of diabetes among the elderly, is one of the reasons that may encourage the faster adoption of diabetes products. Another contributing factor to the diabetes market is the emerging self-monitoring and self-administration trends that are likely to create new growth avenues for the diabetes care devices industry and act as a catalyst for pharma stocks.
Some of the top stocks that benefit from diabetes care drugs and devices include Pfizer Inc. (NYSE:PFE), Eli Lilly and Company (NYSE:LLY), and AbbVie Inc. (NYSE:ABBV). According to a study by Pharma Web, the use of non-insulin treatments for the treatment of diabetes is also on the rise. These include oral medications, lifestyle changes, and other treatments. As diabetes remains one of the fastest-growing diseases across the world, the biggest healthcare companies are likely to keep pouring billions into the development of drugs for treatment.
The companies that operate in the pharma sector and have diabetes drugs in the market or under development were selected for the list. In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks are also discussed. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
Best Diabetes Stocks To Buy Now
10. Novartis AG (NYSE:NVS)
Number of Hedge Fund Holders: 22
Novartis AG (NYSE:NVS) researches, develops, manufactures, and markets healthcare products worldwide. It is one of the premier diabetes stocks to invest in. On September 22, the company announced that it will focus on five therapeutic areas — cardiovascular, immunology, neuroscience, solid tumors, and hematology — as part of a larger transformation plan to become a significant player in the United States pharma market in the next five years. The firm said it intends to stick to the plan despite recent laws to control drug prices.
On September 7, investment advisory Kepler Cheuvreux upgraded Novartis AG (NYSE:NVS) stock to Buy from Hold with a price target of CHF 90. Analyst David Evans issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Novartis AG (NYSE:NVS), with 11 million shares worth more than $950 million.
Just like Pfizer Inc. (NYSE:PFE), Eli Lilly and Company (NYSE:LLY), and AbbVie Inc. (NYSE:ABBV), Novartis AG (NYSE:NVS) is one of the best diabetes stocks to buy now according to hedge funds.
9. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders: 32
Novo Nordisk A/S (NYSE:NVO) is a healthcare company that engages in the research, development, manufacture, and marketing of pharmaceutical products. It is one of the top diabetes stocks to invest in. On September 22, the firm revealed that data from a phase 3 trial of Tresiba, a once-daily therapy for diabetes being developed by the firm, showed that more people with type 2 diabetes achieved blood sugar targets. The study evaluated once-weekly insulin icodec versus once-daily insulin degludec in 526 people with type 2 diabetes.
On August 4, investment advisory Barclays kept an Overweight rating on Novo Nordisk A/S (NYSE:NVO) stock and lowered the price target to DKK 825 from DKK 875. Analyst Emmanuel Papadakis issued the ratings update.
At the end of the second quarter of 2022, 32 hedge funds in the database of Insider Monkey held stakes worth $4.4 billion in Novo Nordisk A/S (NYSE:NVO), compared to 31 the preceding quarter worth $4.5 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Novo Nordisk A/S (NYSE:NVO) was one of them. Here is what the fund said:
“We added to our position in Novo Nordisk A/S (NYSE:NVO), a leading global biopharmaceutical company headquartered in Denmark that specializes in treatments for diabetes, obesity, and other chronic diseases. We wrote about Novo Nordisk in last quarter’s letter. We continue to believe Novo Nordisk’s diabetes and anti-obesity franchise will drive attractive revenue and earnings growth for many years to come. We think both Novo Nordisk and competitor Eli Lilly and Company (which we also own in the Fund) can be successful in these large markets.”
8. Tandem Diabetes Care, Inc. (NASDAQ:TNDM)
Number of Hedge Fund Holders: 32
Tandem Diabetes Care, Inc. (NASDAQ:TNDM) is a medical device company that designs, develops, and commercializes various products for people with insulin-dependent diabetes. The firm is among the best diabetes stocks to invest in. In early June, the company revealed data that showed the benefits of using a new insulin pump being developed by the firm that uses cutting-edge Control-IQ technology. The company said the patient-reported outcomes from an ethnically diverse cohort of 1,306 adults showed significant improvements in life quality.
On August 4, Craig-Hallum analyst Alexander Nowak maintained a Buy rating on Tandem Diabetes Care, Inc. (NASDAQ:TNDM) stock and lowered the price target to $105 from $156, noting that Q2 marked a much different tone from Tandem than the prior period.
At the end of the second quarter of 2022, 32 hedge funds in the database of Insider Monkey held stakes worth $147.8 million in Tandem Diabetes Care, Inc. (NASDAQ:TNDM), compared to 42 in the preceding quarter worth $385.6 million.
7. Insulet Corporation (NASDAQ:PODD)
Number of Hedge Fund Holders: 34
Insulet Corporation (NASDAQ:PODD) develops, manufactures, and sells insulin diabetes systems for people with insulin-dependent diabetes. The company is one of the most prominent diabetes stocks to invest in. In late August, the firm announced that it had won regulatory approval from authorities in the United States for the Omnipod 5 Automated Insulin Delivery System for use in children aged 2 to 5 years with type 1 diabetes. The product is the first tubeless AID system available for preschool children in the US.
On August 5, Canaccord analyst Kyle Rose maintained a Buy rating on Insulet Corporation (NASDAQ:PODD) stock and raised the price target to $290 from $250, noting the launch of new products by the firm will magnify the competitive advantage of the pharmacy channel.
Among the hedge funds being tracked by Insider Monkey, California-based investment firm D1 Capital Partners is a leading shareholder in Insulet Corporation (NASDAQ:PODD), with 1.2 million shares worth more than $269 million.
“Health care has always been a core foundation of the portfolio and we have been diversifying our health care exposure to include services and solutions beyond our traditional overweight to biopharmaceuticals and managed care. We first purchased Insulet Corporation (NASDAQ:PODD), a leading provider of insulin pumps for diabetes patients, in the fourth quarter of 2021, and we have aggressively added to the position since then. The company is currently the only meaningful manufacturer of patch pumps, the preferred form factor for many patients as compared to traditional tubed pumps. We believe Insulet has a long runway for growth given its large and underpenetrated market, which is only one-third penetrated in Type 1 diabetes and low-single-digit penetrated in the insulin- intensive Type 2 diabetes population. Additionally, we see the launch of the company’s next generation offering, Omnipod 5, which received FDA clearance in January, as an accelerant to growth. Insulet has strong gross margins and is profitable today, though we still see room for significant operating margin expansion ahead.”
6. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders: 47
AstraZeneca PLC (NASDAQ:AZN) is a biopharmaceutical company that focuses on the discovery, development, manufacturing, and commercialization of prescription medicines. The firm features on the list of best diabetes stocks to invest in. One of the premier diabetes drugs of the firm is Exenatide, approved for use in the US for adult patients with type 2 diabetes. Last year, a study related to the drug showed that patients who received a once-weekly dose of Exenatide showed significantly reduced levels of HbA1c, a blood sugar measure.
On August 29, Argus analyst Jasper Hellwe upgraded AstraZeneca PLC (NASDAQ:AZN) stock to Buy from Hold with a price target of $75, noting the firm had a range of new drugs approved in the past few months.
At the end of the second quarter of 2022, 47 hedge funds in the database of Insider Monkey held stakes worth $4.9 billion in AstraZeneca PLC (NASDAQ:AZN), compared to 45 in the previous quarter worth $4.6 billion.
Along with Pfizer Inc. (NYSE:PFE), Eli Lilly and Company (NYSE:LLY), and AbbVie Inc. (NYSE:ABBV), AstraZeneca PLC (NASDAQ:AZN) is one of the best diabetes stocks to buy now according to hedge funds.
“AstraZeneca (NYSE:AZN) performed strongly and reported encouraging fourth-quarter earnings and initial 2022 guidance. AstraZeneca also announced positive clinical data for two drugs within its oncology business that should serve as important long-term growth drivers.”
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Disclosure. None. 10 Best Diabetes Stocks To Buy Now is originally published on Insider Monkey.