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Yahoo
28-04-2025
- Business
- Yahoo
UnitedHealth Group Incorporated (UNH): Among Billionaire Ken Fisher's Healthcare Stock Picks with Massive Upside Potential
We recently published a list of . In this article, we are going to take a look at where UnitedHealth Group Incorporated (NYSE:UNH) stands against other billionaire Ken Fisher's healthcare stock picks with massive upside potential. The healthcare industry, an essential component of global well-being and economic resilience, is undergoing significant changes. The industry, which is thought to account for more than 10% of the world's GDP, is set to enter a new era characterized by demographic shifts, digital innovation, and regulatory realignment. Stakeholders in the life sciences, diagnostics, and healthcare services ecosystem face a conundrum as of 2025: stability is threatened by ongoing financial strain, growing operational complexity, and geopolitical risks, despite the abundance of growth opportunities. Healthcare earnings in the U.S. are still under pressure. EBITDA as a percentage of national health spending has dropped by 150 basis points since 2019, which has a significant impact on both payers and providers, according to McKinsey. The World Health Organization projects that there will be a 10-million-person shortage of healthcare workers worldwide by 2030, limited reimbursement growth, and high inflationary prices. At the same time, digital transformation has gained importance. According to Deloitte, 90% of executives in global health systems anticipate a faster adoption of digital technology, and over 70% of them intend to increase operational efficiency in 2025. Artificial intelligence (AI) is at the heart of this change. AI, which was once aspirational, is now a disruptive force that improves everything from medical diagnosis to hospital logistics. AI is seen by EU institutions as essential to the modernization of public health. The European Health Data Space (EHDS), which will be launched in 2025, and the European Commission's 2024 AI Act aim to guarantee that AI technologies are reliable and safe, while facilitating access to high-quality, interoperable health data. These frameworks provide patients and developers with legal protection by simplifying liability standards for flawed AI systems, in conjunction with the revised Product Liability Directive. However, issues remain. Integrating AI into clinical operations necessitates consistent funding, cultural acceptance, and regulatory clarity. Bias in data, ethical considerations, and the complexity of agentic AI solutions—tools that work autonomously to perform multi-step healthcare processes—require careful management. Despite these challenges, practical applications are gaining traction: AI is currently used in early sepsis identification, breast cancer screening, and pharmaceutical R&D, with the potential to shorten medication development timelines and improve patient outcomes. Meanwhile, recent geopolitical developments are casting a shadow on global healthcare supply networks. In April 2025, President Donald Trump announced substantial tariffs, including a 10% baseline and targeted taxes on medical devices, which might disrupt access to vital inputs like diagnostic tools and protective equipment. 'What Trump unveiled Wednesday is stupid, wrong, arrogantly extreme, and ignorant trade-wise,' said billionaire investor Ken Fisher in a harsh indictment of the proposal. Furthermore, Morningstar and Fitch analysts warn of rising expenses for hospitals, which are already dealing with low margins and restricted pricing options. These changes—technological, legislative, and geopolitical—occur against a backdrop of cautious optimism. While GDP growth in the United States is predicted to drop from 2.7% in 2024 to 1.5% in 2025, the healthcare industry remains strong. As AI integration deepens, policy clarity emerges, and investment cycles reset, the industry may be poised for a new era of growth. To create our list of Billionaire Ken Fisher's 10 Healthcare Stock Picks with Massive Upside Potential, we looked at Ken Fisher's Q4 2024 13F SEC filings to find healthcare stocks in his portfolio. We then chose the ten stocks with the highest upside potential based on average analyst price forecasts, as of the time of writing this article. The equities were then sorted in ascending order of predicted upside. This strategy highlights the most promising healthcare investments in Fisher's existing portfolio. Furthermore, hedge fund sentiment was also laid out for these stocks, as of Insider Monkey's Q4 2024 database. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (). A senior healthcare professional giving advice to a patient in a clinic. UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx are the four main business sectors of UnitedHealth Group Incorporated (NYSE:UNH), which is headquartered in Eden Prairie, Minnesota. The company offers a wide range of pharmaceutical care services, healthcare services, data analytics, and health benefit plans, both domestically and abroad. Due to unforeseen difficulties in its Medicare Advantage (MA) businesses, UnitedHealth Group Incorporated (NYSE:UNH) updated its full-year adjusted EPS outlook to $26–$26.50 per share in the first quarter of 2025, which concluded on March 31. UnitedHealthcare's MA margins suffered as care activity increased twice as quickly as first predicted, particularly in physician and outpatient services. A more complicated patient mix and lower-than-expected reimbursement for new patients from insurance, leaving specific areas, caused Optum Health to face a revenue shortfall at the same time. Although implementing the new CMS risk adjustment model has been challenging, the company is making efforts to enhance clinician involvement and streamline processes for more precise evaluations. Notwithstanding these obstacles, UnitedHealth Group Incorporated (NYSE:UNH) maintained its $450–$455 billion consolidated revenue forecast for 2025, bolstered by better-than-expected results from Optum Rx and UnitedHealthcare. With a 3% rise in scripts as a result of new customer acquisitions and excellent retention, Optum Rx's sales increased 14% year over year to surpass $35 billion. In 2025, Optum Health anticipates adding 650,000 more patients to value-based care models, and UnitedHealth Group Incorporated (NYSE:UNH) is on track to serve an additional 800,000 Medicare Advantage members. Strong momentum in the Medicaid and commercial areas, supported by expanded services and state partnerships, was also recognized by the firm. UnitedHealth Group Incorporated (NYSE:UNH) is committed to reaching its long-term EPS growth goal of 13%–16%, with a focus on digital engagement, operational efficiency, and technology-driven care delivery. Both income and growth-oriented investors should continue to keep an eye on UnitedHealth Group, which holds a significant position in Ken Fisher's stock portfolio, valued at $1.7 billion. Overall, UNH ranks 4th on our list of billionaire Ken Fisher's healthcare stock picks with massive upside potential. While we acknowledge the potential of these companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at .
Yahoo
28-04-2025
- Business
- Yahoo
Danaher Corporation (DHR): Among Billionaire Ken Fisher's Healthcare Stock Picks with Massive Upside Potential
We recently published a list of . In this article, we are going to take a look at where Danaher Corporation (NYSE:DHR) stands against other billionaire Ken Fisher's healthcare stock picks with massive upside potential. The healthcare industry, an essential component of global well-being and economic resilience, is undergoing significant changes. The industry, which is thought to account for more than 10% of the world's GDP, is set to enter a new era characterized by demographic shifts, digital innovation, and regulatory realignment. Stakeholders in the life sciences, diagnostics, and healthcare services ecosystem face a conundrum as of 2025: stability is threatened by ongoing financial strain, growing operational complexity, and geopolitical risks, despite the abundance of growth opportunities. Healthcare earnings in the U.S. are still under pressure. EBITDA as a percentage of national health spending has dropped by 150 basis points since 2019, which has a significant impact on both payers and providers, according to McKinsey. The World Health Organization projects that there will be a 10-million-person shortage of healthcare workers worldwide by 2030, limited reimbursement growth, and high inflationary prices. At the same time, digital transformation has gained importance. According to Deloitte, 90% of executives in global health systems anticipate a faster adoption of digital technology, and over 70% of them intend to increase operational efficiency in 2025. Artificial intelligence (AI) is at the heart of this change. AI, which was once aspirational, is now a disruptive force that improves everything from medical diagnosis to hospital logistics. AI is seen by EU institutions as essential to the modernization of public health. The European Health Data Space (EHDS), which will be launched in 2025, and the European Commission's 2024 AI Act aim to guarantee that AI technologies are reliable and safe, while facilitating access to high-quality, interoperable health data. These frameworks provide patients and developers with legal protection by simplifying liability standards for flawed AI systems, in conjunction with the revised Product Liability Directive. However, issues remain. Integrating AI into clinical operations necessitates consistent funding, cultural acceptance, and regulatory clarity. Bias in data, ethical considerations, and the complexity of agentic AI solutions—tools that work autonomously to perform multi-step healthcare processes—require careful management. Despite these challenges, practical applications are gaining traction: AI is currently used in early sepsis identification, breast cancer screening, and pharmaceutical R&D, with the potential to shorten medication development timelines and improve patient outcomes. Meanwhile, recent geopolitical developments are casting a shadow on global healthcare supply networks. In April 2025, President Donald Trump announced substantial tariffs, including a 10% baseline and targeted taxes on medical devices, which might disrupt access to vital inputs like diagnostic tools and protective equipment. 'What Trump unveiled Wednesday is stupid, wrong, arrogantly extreme, and ignorant trade-wise,' said billionaire investor Ken Fisher in a harsh indictment of the proposal. Furthermore, Morningstar and Fitch analysts warn of rising expenses for hospitals, which are already dealing with low margins and restricted pricing options. These changes—technological, legislative, and geopolitical—occur against a backdrop of cautious optimism. While GDP growth in the United States is predicted to drop from 2.7% in 2024 to 1.5% in 2025, the healthcare industry remains strong. As AI integration deepens, policy clarity emerges, and investment cycles reset, the industry may be poised for a new era of growth. To create our list of Billionaire Ken Fisher's 10 Healthcare Stock Picks with Massive Upside Potential, we looked at Ken Fisher's Q4 2024 13F SEC filings to find healthcare stocks in his portfolio. We then chose the ten stocks with the highest upside potential based on average analyst price forecasts, as of the time of writing this article. The equities were then sorted in ascending order of predicted upside. This strategy highlights the most promising healthcare investments in Fisher's existing portfolio. Furthermore, hedge fund sentiment was also laid out for these stocks, as of Insider Monkey's Q4 2024 database. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (). A healthcare professional in a lab coat holding a microscope and looking at a slide under the lens. With its Biotechnology, Life Sciences, and Diagnostics divisions, Danaher Corporation (NYSE:DHR) is a multinational scientific and technology company. It offers cutting-edge instruments, supplies, and solutions for use in clinical diagnostics, research applications, and pharmaceutical development. Underpinned by its steady financial performance and innovation-driven growth, Danaher continues to be a prominent company in Ken Fisher's stock portfolio, with a strong presence in the United States, China, and beyond. Danaher Corporation (NYSE:DHR) recorded $23.9 billion in total sales for the fiscal year that concluded on December 31, 2024, a 1.5% decrease in core revenue. However, with free cash flow of $5.3 billion, or 135% of net income, the company achieved over 100% free cash flow conversion for the 33rd year in a row. Across all segments, Danaher Corporation (NYSE:DHR) kept up its investment in innovation. The Cytiva Sefia platform in biotechnology is making it possible to produce CAR-Ts more effectively. Furthermore, Leica Microsystems, a subsidiary of DHR, enhanced its spatial biology imaging capabilities, and Beckman Coulter, also a subsidiary, introduced automated technologies to speed up cell line production in the life sciences. Danaher's capacity to provide state-of-the-art clinical solutions is demonstrated in the diagnostics industry by Beckman's new assays for Alzheimer's research and Cepheid's expansion in non-respiratory and women's health diagnostics. Also, its position in precision diagnostics is strengthened by the FDA's designation of its Alzheimer's diagnostic test as a breakthrough device. Despite a 2% foreign exchange loss, Danaher Corporation (NYSE:DHR) projects a 28.5% adjusted operating profit and a 3% increase in core sales in 2025. The company's sustained emphasis on shareholder returns is evidenced by the 18.5% increase in its quarterly dividend to $0.32 per share. Thus, Danaher has a robust innovation engine, a global presence, and effective capital allocation, which position it for long-term, steady growth. Overall, DHR ranks 3rd on our list of billionaire Ken Fisher's healthcare stock picks with massive upside potential. While we acknowledge the potential of DHR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DHR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
27-04-2025
- Business
- Yahoo
Thermo Fisher Scientific Inc. (TMO): Among Billionaire Ken Fisher's Healthcare Stock Picks with Massive Upside Potential
We recently published a list of . In this article, we are going to take a look at where Thermo Fisher Scientific Inc. (NYSE:TMO) stands against other Billionaire Ken Fisher's healthcare stock picks with massive upside potential. The healthcare industry, an essential component of global well-being and economic resilience, is undergoing significant changes. The industry, which is thought to account for more than 10% of the world's GDP, is set to enter a new era characterized by demographic shifts, digital innovation, and regulatory realignment. Stakeholders in the life sciences, diagnostics, and healthcare services ecosystem face a conundrum as of 2025: stability is threatened by ongoing financial strain, growing operational complexity, and geopolitical risks, despite the abundance of growth opportunities. Healthcare earnings in the U.S. are still under pressure. EBITDA as a percentage of national health spending has dropped by 150 basis points since 2019, which has a significant impact on both payers and providers, according to McKinsey. The World Health Organization projects that there will be a 10-million-person shortage of healthcare workers worldwide by 2030, limited reimbursement growth, and high inflationary prices. At the same time, digital transformation has gained importance. According to Deloitte, 90% of executives in global health systems anticipate a faster adoption of digital technology, and over 70% of them intend to increase operational efficiency in 2025. Artificial intelligence (AI) is at the heart of this change. AI, which was once aspirational, is now a disruptive force that improves everything from medical diagnosis to hospital logistics. AI is seen by EU institutions as essential to the modernization of public health. The European Health Data Space (EHDS), which will be launched in 2025, and the European Commission's 2024 AI Act aim to guarantee that AI technologies are reliable and safe, while facilitating access to high-quality, interoperable health data. These frameworks provide patients and developers with legal protection by simplifying liability standards for flawed AI systems, in conjunction with the revised Product Liability Directive. However, issues remain. Integrating AI into clinical operations necessitates consistent funding, cultural acceptance, and regulatory clarity. Bias in data, ethical considerations, and the complexity of agentic AI solutions—tools that work autonomously to perform multi-step healthcare processes—require careful management. Despite these challenges, practical applications are gaining traction: AI is currently used in early sepsis identification, breast cancer screening, and pharmaceutical R&D, with the potential to shorten medication development timelines and improve patient outcomes. Meanwhile, recent geopolitical developments are casting a shadow on global healthcare supply networks. In April 2025, President Donald Trump announced substantial tariffs, including a 10% baseline and targeted taxes on medical devices, which might disrupt access to vital inputs like diagnostic tools and protective equipment. 'What Trump unveiled Wednesday is stupid, wrong, arrogantly extreme, and ignorant trade-wise,' said billionaire investor Ken Fisher in a harsh indictment of the proposal. Furthermore, Morningstar and Fitch analysts warn of rising expenses for hospitals, which are already dealing with low margins and restricted pricing options. These changes—technological, legislative, and geopolitical—occur against a backdrop of cautious optimism. While GDP growth in the United States is predicted to drop from 2.7% in 2024 to 1.5% in 2025, the healthcare industry remains strong. As AI integration deepens, policy clarity emerges, and investment cycles reset, the industry may be poised for a new era of growth. To create our list of Billionaire Ken Fisher's 10 Healthcare Stock Picks with Massive Upside Potential, we looked at Ken Fisher's Q4 2024 13F SEC filings to find healthcare stocks in his portfolio. We then chose the ten stocks with the highest upside potential based on average analyst price forecasts, as of the time of writing this article. The equities were then sorted in ascending order of predicted upside. This strategy highlights the most promising healthcare investments in Fisher's existing portfolio. Furthermore, hedge fund sentiment was also laid out for these stocks, as of Insider Monkey's Q4 2024 database. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (). A workstation in a research lab stocked with laboratory products and services. Thermo Fisher Scientific Inc. (NYSE:TMO) is a world leader in the provision of laboratory products, analytical tools, diagnostics, and scientific solutions in the life sciences. With operations across North America, Europe, Asia-Pacific, and beyond, the company provides cutting-edge tools and services to serve industrial, healthcare, and research applications. The company reported $42.9 billion in revenue and adjusted EPS of $21.86 per share for the year. Results for the fourth quarter revealed an 8% increase in adjusted EPS to $6.10 and a 5% increase in revenue to $11.4 billion. With margins increasing to 23.9%, adjusted operating income increased by 7% to $2.72 billion. Thermo Fisher Scientific Inc. (NYSE:TMO) produced growth in electron microscopy, diagnostics, and pharmaceutical services throughout the end markets. Disciplined capital allocation, which included $4 billion in share buybacks, helped the company's full-year free cash flow reach $7.3 billion. Highlights of the segment-wise performance included Analytical Instruments' 8% organic growth, which was fueled by increasing demand for mass spectrometry and electron microscopy. On the other hand, Specialty Diagnostics and Laboratory Products demonstrated sustained progress, bolstered by advancements in clinical research and transplant diagnostics, while Life Sciences Solutions increased its margin to 36.4%. Looking ahead, the company anticipates 3% to 4% organic growth and adjusted EPS between $23.10 and $23.50 in 2025, supported by productivity increases and the tried-and-true PPI Business System. The Krios 5 Cryo-TEM, a next-generation imaging platform with improved optics and AI-enabled automation, was recently introduced by Thermo Fisher Scientific Inc. (NYSE:TMO). With up to 25% more throughput than previous models, it makes atomic-level structural biology discoveries possible. Additionally, the system has sustainable design components that assist environmental and energy efficiency objectives. For investors following Ken Fisher's stock portfolio, in which Thermo Fisher continues to be a strategic investment, this innovation demonstrates the company's dedication to furthering scientific discovery. Overall, TMO ranks 1st on our list of Billionaire Ken Fisher's healthcare stock picks with massive upside potential. While we acknowledge the potential of these companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TMO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
27-04-2025
- Business
- Yahoo
Merck & Co., Inc. (MRK): Among Billionaire Ken Fisher's Healthcare Stock Picks with Massive Upside Potential
We recently published a list of . In this article, we are going to take a look at where Merck & Co., Inc. (NYSE:MRK) stands against other Billionaire Ken Fisher's healthcare stock picks with massive upside potential. The healthcare industry, an essential component of global well-being and economic resilience, is undergoing significant changes. The industry, which is thought to account for more than 10% of the world's GDP, is set to enter a new era characterized by demographic shifts, digital innovation, and regulatory realignment. Stakeholders in the life sciences, diagnostics, and healthcare services ecosystem face a conundrum as of 2025: stability is threatened by ongoing financial strain, growing operational complexity, and geopolitical risks, despite the abundance of growth opportunities. Healthcare earnings in the U.S. are still under pressure. EBITDA as a percentage of national health spending has dropped by 150 basis points since 2019, which has a significant impact on both payers and providers, according to McKinsey. The World Health Organization projects that there will be a 10-million-person shortage of healthcare workers worldwide by 2030, limited reimbursement growth, and high inflationary prices. At the same time, digital transformation has gained importance. According to Deloitte, 90% of executives in global health systems anticipate a faster adoption of digital technology, and over 70% of them intend to increase operational efficiency in 2025. Artificial intelligence (AI) is at the heart of this change. AI, which was once aspirational, is now a disruptive force that improves everything from medical diagnosis to hospital logistics. AI is seen by EU institutions as essential to the modernization of public health. The European Health Data Space (EHDS), which will be launched in 2025, and the European Commission's 2024 AI Act aim to guarantee that AI technologies are reliable and safe, while facilitating access to high-quality, interoperable health data. These frameworks provide patients and developers with legal protection by simplifying liability standards for flawed AI systems, in conjunction with the revised Product Liability Directive. However, issues remain. Integrating AI into clinical operations necessitates consistent funding, cultural acceptance, and regulatory clarity. Bias in data, ethical considerations, and the complexity of agentic AI solutions—tools that work autonomously to perform multi-step healthcare processes—require careful management. Despite these challenges, practical applications are gaining traction: AI is currently used in early sepsis identification, breast cancer screening, and pharmaceutical R&D, with the potential to shorten medication development timelines and improve patient outcomes. Meanwhile, recent geopolitical developments are casting a shadow on global healthcare supply networks. In April 2025, President Donald Trump announced substantial tariffs, including a 10% baseline and targeted taxes on medical devices, which might disrupt access to vital inputs like diagnostic tools and protective equipment. 'What Trump unveiled Wednesday is stupid, wrong, arrogantly extreme, and ignorant trade-wise,' said billionaire investor Ken Fisher in a harsh indictment of the proposal. Furthermore, Morningstar and Fitch analysts warn of rising expenses for hospitals, which are already dealing with low margins and restricted pricing options. These changes—technological, legislative, and geopolitical—occur against a backdrop of cautious optimism. While GDP growth in the United States is predicted to drop from 2.7% in 2024 to 1.5% in 2025, the healthcare industry remains strong. As AI integration deepens, policy clarity emerges, and investment cycles reset, the industry may be poised for a new era of growth. To create our list of Billionaire Ken Fisher's 10 Healthcare Stock Picks with Massive Upside Potential, we looked at Ken Fisher's Q4 2024 13F SEC filings to find healthcare stocks in his portfolio. We then chose the ten stocks with the highest upside potential based on average analyst price forecasts, as of the time of writing this article. The equities were then sorted in ascending order of predicted upside. This strategy highlights the most promising healthcare investments in Fisher's existing portfolio. Furthermore, hedge fund sentiment was also laid out for these stocks, as of Insider Monkey's Q4 2024 database. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (). A close-up of a person's hand holding a bottle of pharmaceuticals. With hallmark medications in oncology, vaccines, and infectious illnesses, Merck & Co., Inc. (NYSE:MRK) is a leading worldwide healthcare company that works in both human and animal health. The company, which is well-known for its innovation-driven pipeline, keeps making significant R&D investments while negotiating the shifting dynamics of the worldwide market. Merck & Co., Inc. (NYSE:MRK) generated $15.6 billion in total Q4 sales, which was 7% higher than the previous year (9% ex-FX). Sales of Keytruda increased 21% to $7.8 billion due to robust worldwide demand for both metastatic and early-stage malignancies. Additionally, the company's Animal Health division reported strong 13% growth. Sales of GARDASIL, however, fell 18% as a result of shipments to China being halted due to high inventory levels at distribution partner Zhifei. Merck, however, is still optimistic about GARDASIL's long-term prospects worldwide. The company's core business development is anticipated to counteract GARDASIL's challenges in China, with revenue projections for 2025 ranging from $64.1 to $65.6 billion and non-GAAP EPS of $8.88 to $9.03. In addition to increasing its dividend, Merck & Co., Inc. (NYSE:MRK) increased its authorization for share repurchases to $12 billion, bolstering shareholder returns. Notably, the pipeline contains more than 20 potential blockbusters, such as WINREVAIR for pulmonary arterial hypertension, which has been approved in more than 35 countries and saw initial sales of $200 million. Following promising Phase III findings in TGCT patients, Merck & Co., Inc. (NYSE:MRK) exercised its global commercialization rights for pimicotinib, a CSF-1R inhibitor created by Abbisko Therapeutics, on March 31, 2025, expanding its oncology pipeline. Merck's long-term growth prospects are improved by this $85 million acquisition, which expands its extensive oncology bench. Thus, Merck & Co., Inc. (NYSE:MRK) continues to be a high-conviction pharmaceutical investment in Ken Fisher's stock portfolio because of its innovation-led approach, diversified portfolio, and dedication to capital discipline. Overall, MRK ranks 2nd on our list of Billionaire Ken Fisher's healthcare stock picks with massive upside potential. While we acknowledge the potential of these companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MRK but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
27-04-2025
- Business
- Yahoo
Viatris Inc. (VTRS): Among Billionaire Ken Fisher's Healthcare Stock Picks with Massive Upside Potential
We recently published a list of . In this article, we are going to take a look at where Viatris Inc. (NASDAQ:VTRS) stands against other Billionaire Ken Fisher's healthcare stock picks with massive upside potential. The healthcare industry, an essential component of global well-being and economic resilience, is undergoing significant changes. The industry, which is thought to account for more than 10% of the world's GDP, is set to enter a new era characterized by demographic shifts, digital innovation, and regulatory realignment. Stakeholders in the life sciences, diagnostics, and healthcare services ecosystem face a conundrum as of 2025: stability is threatened by ongoing financial strain, growing operational complexity, and geopolitical risks, despite the abundance of growth opportunities. Healthcare earnings in the U.S. are still under pressure. EBITDA as a percentage of national health spending has dropped by 150 basis points since 2019, which has a significant impact on both payers and providers, according to McKinsey. The World Health Organization projects that there will be a 10-million-person shortage of healthcare workers worldwide by 2030, limited reimbursement growth, and high inflationary prices. At the same time, digital transformation has gained importance. According to Deloitte, 90% of executives in global health systems anticipate a faster adoption of digital technology, and over 70% of them intend to increase operational efficiency in 2025. Artificial intelligence (AI) is at the heart of this change. AI, which was once aspirational, is now a disruptive force that improves everything from medical diagnosis to hospital logistics. AI is seen by EU institutions as essential to the modernization of public health. The European Health Data Space (EHDS), which will be launched in 2025, and the European Commission's 2024 AI Act aim to guarantee that AI technologies are reliable and safe, while facilitating access to high-quality, interoperable health data. These frameworks provide patients and developers with legal protection by simplifying liability standards for flawed AI systems, in conjunction with the revised Product Liability Directive. However, issues remain. Integrating AI into clinical operations necessitates consistent funding, cultural acceptance, and regulatory clarity. Bias in data, ethical considerations, and the complexity of agentic AI solutions—tools that work autonomously to perform multi-step healthcare processes—require careful management. Despite these challenges, practical applications are gaining traction: AI is currently used in early sepsis identification, breast cancer screening, and pharmaceutical R&D, with the potential to shorten medication development timelines and improve patient outcomes. Meanwhile, recent geopolitical developments are casting a shadow on global healthcare supply networks. In April 2025, President Donald Trump announced substantial tariffs, including a 10% baseline and targeted taxes on medical devices, which might disrupt access to vital inputs like diagnostic tools and protective equipment. 'What Trump unveiled Wednesday is stupid, wrong, arrogantly extreme, and ignorant trade-wise,' said billionaire investor Ken Fisher in a harsh indictment of the proposal. Furthermore, Morningstar and Fitch analysts warn of rising expenses for hospitals, which are already dealing with low margins and restricted pricing options. These changes—technological, legislative, and geopolitical—occur against a backdrop of cautious optimism. While GDP growth in the United States is predicted to drop from 2.7% in 2024 to 1.5% in 2025, the healthcare industry remains strong. As AI integration deepens, policy clarity emerges, and investment cycles reset, the industry may be poised for a new era of growth. To create our list of Billionaire Ken Fisher's 10 Healthcare Stock Picks with Massive Upside Potential, we looked at Ken Fisher's Q4 2024 13F SEC filings to find healthcare stocks in his portfolio. We then chose the ten stocks with the highest upside potential based on average analyst price forecasts, as of the time of writing this article. The equities were then sorted in ascending order of predicted upside. This strategy highlights the most promising healthcare investments in Fisher's existing portfolio. Furthermore, hedge fund sentiment was also laid out for these stocks, as of Insider Monkey's Q4 2024 database. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (). A healthcare worker in a lab coat, holding a microscope and reflecting on the diagnosis of a patient. With operations in more than 165 countries, Viatris Inc. (NASDAQ:VTRS) is a multifaceted international healthcare organization with its headquarters located in Canonsburg, Pennsylvania. In important therapeutic areas like cardiovascular, central nervous system, infectious diseases, and oncology, it provides a broad selection of prescription brands, generics, complicated generics, and biosimilars. The company has a robust worldwide distribution network that includes retail and institutional pharmacies, e-commerce platforms, and specialized channels, and it has a portfolio of well-known products like EpiPen, Lipitor, Celebrex, and Viagra. Viatris Inc. (NASDAQ:VTRS) generated $14.7 billion in total revenue for the fiscal year ended December 31, 2024, which is a 2% increase on an operational basis adjusted for divestitures. Adjusted EPS was $2.65, and adjusted EBITDA was $4.7 billion. With costs associated with divestitures excluded, free cash flow was $2.6 billion. Viatris achieved its long-term gross leverage goal of 2.9x by retiring $3.7 billion in debt and returning about $825 million to shareholders. The company anticipates a $500 million short-term sales hit in 2025 as a result of remediation work at its Indore factory, which includes a $385 million EBITDA headwind. Strong momentum is still present in emerging markets as well as core markets like China and Europe. As a result of more than 150 anticipated worldwide product launches, including sophisticated injectables like Octreotide and Iron Sucrose, Viatris Inc. (NASDAQ:VTRS) anticipates $450–$550 million in new product sales. With six readouts anticipated this year and ten distinct Phase 3 compounds, the R&D pipeline is still strong. Selatogrel, cenerimod, and sotagliflozin—three important novel assets—are making steady progress. Supported by a robust anticipated free cash flow of $2 billion, the company anticipates over $1 billion in capital returns in 2025 through dividends and share repurchases. Viatris Inc. (NASDAQ:VTRS) continues to be a key holding in Ken Fisher's stock portfolio due to its capital discipline, operational execution, and developing pipeline, indicating long-term investor confidence in its approach. Overall, VTRS ranks 5th on our list of Billionaire Ken Fisher's healthcare stock picks with massive upside potential. While we acknowledge the potential of these companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than VTRS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
