We recently published a list of the top nine healthcare stocks to buy, according to billionaire David Einhorn. In this article, we'll look at where Viatris Inc. (NASDAQ: VTRS) will play against and buy other top healthcare stocks, according to billionaire David Einhorn.
Wall Street has crashed with President Donald Trump's drastic tariffs, increasing the risk of a trade war that could drive the global economy into a recession. The major equity index has recorded its worst days over the years, with the S&P 500 returning to the corrections territory. Within Bloodbath, the focus is gradually on the poised defence sector looking to mess up the long-term effects of the trade war.
The stock market's sudden selling recurs just after Greenlight Capital's David Einhorn, and at the beginning of the year when the longtime Bull Run was promoted to a level beyond common sense.
“We have reached the 'chat' stage of the market cycle,” Einhorn wrote in an investor letter obtained by CNBC. “Except for dealings and speculation, it does not serve other obvious purposes and does not meet the need not provided elsewhere.”
Emotions came at artificial intelligence-led gatherings, pushing key indicators to record highs. The high-value profits also came from the hope that the Federal Reserve will aggressively cut interest rates at inflation levels, approaching the recommended 2% range. Things are changing and the risk of inflationary spikes is rising amid a positive trade war between the United States and its trading partners.
Also read David Tepper's portfolio and top 10 growth stocks in billionaire Ken Fisher's top 13 growth stock picks.
Greenlight Capital, a hedge fund founded by David Einhorn, is also at a crossroads in deep selling in the market. Nevertheless, hedge funds specializing in value-oriented strategies boast significant exposure to health stocks.
Healthcare stocks tend to do well in the recession, as demand for healthcare services remains strong regardless of the general economic situation. As a result, the healthcare sector has declined by about 4% per year compared to the 14% decline in the S&P 500. Outperformance is how the stock market for the entire stock remains in the correction stage as it repeats healthcare stocks with Goldman Sachs' chief US equity strategist David Kostin.
Given that healthcare accounts for around 17% of the US economy, companies exposed to billions of sectors are likely to shrug the pitfalls of an ongoing trade war. That's because the industry boasts a defensive slope that should attract investors' attention in a rotation from risky plays in the stock market.
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“Within the stock market, we continue to encourage investors to own a health sector that offers a low rating and defensive slope,” Costin added. “Healthcare surpasses the S&P 500 by 7 pages, but the median stock is still trading at a P/E discount of 18% on the S&P 500, which is almost the largest valuation discount in recent decades.”
The focus on health stocks amid a recession and trade war concerns comes amidst the backdrop of one of the most frustrating years for health fund managers. The fundamental aspect of the healthcare sector has shown it outperforms the overall market, but it lags behind sectors that are sensitive to economic change as the US economy turned out to be stronger than expected in 2024.
Historically, healthcare has been significantly better over the long term. From 1989 to October 2024, the S&P 500 Healthcare Index produced an annual return rate of 12%, comparable to the technology sector. However, performance is cyclical and, as if all defense sectors are superior, it has clear performance and clear stages of outperformance driven by comprehensive market trends and industry-specific catalysts, as well as comprehensive market trends and industry-specific catalysts.
We have collaborated with Greenlight Capital Sec Q4 2024 13F filing to identify the top nine healthcare stocks in David Einhorn's portfolio. Next, we analyzed why stocks stand out as solid investments are made. This has been poised to mess with the uncertainty caused by recession concerns and the trade war. Finally, we ranked stocks in ascending order based on the value of the Greenlight Capital Equity Stakes of the stock. Additionally, as of the fourth quarter of 2024, we mentioned hedge fund sentiment around each stock.
Why are hedge funds interested in the stocks they accumulate? The reason is simple. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. The quarterly newsletter strategy has chosen 14 small and large caps per quarter, returning 373.4% since May 2014, surpassing the benchmark by 218 percentage points (see more here).
Is Viatris Inc. (VTRS) a top healthcare stock to buy, according to billionaire David Einhorn?
A healthcare worker wearing a white coat, holding a microscope and reflecting the patient's diagnosis.
Greenlight Capital Equity Stakes: $72.02 million
Number of hedge fund holders: 48
Viatris Inc. (NASDAQ: VTRS) is a healthcare company that provides prescription branded drugs, generics, complex generics, and biosimilars. It also offers a wide range of drug categories and boasts a portfolio of over 1,400 approved molecules. It also offers high-quality generic and branded medicines in over 165 countries, confirming its position as one of the top healthcare stocks in David Einhorn's portfolio.
To enhance long-term outlook and growth metrics, Viatris Inc. (NASDAQ: VTRS) is in the process of developing a popular version of Novo Nordisk's famous weight loss pills, Ozempic and Wegovy. This push is part of the company's bid to unlock growth opportunities in the billions of weight loss markets.
Viatris Inc. (NASDAQ: VTRS) reported total revenue of $14.7 billion, adjusted EBITDA of $4.7 billion, and $2 billion in 2024 free cash flow.
Overall, VTRS ranks number one on the list of top healthcare stocks, according to billionaire David Einhorn. We acknowledge the possibility of VTRS, but our belief lies in the belief that AI stocks offer higher returns and hold a greater promise to do so within a shorter time frame. There have been AI stocks that have risen since the beginning of 2025, and the popular AI stocks have lost around 25%. If you're looking for AI stocks that are more promising than VTRs but are trading at less than five times their earnings, check out this report on the cheapest AI stocks.
Read next: According to the billionaire, buy 20 best AI stocks to buy now and the best best stocks to buy now.
Disclosure: None. This article was originally published on Insider Monkey.
