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10 Best Healthcare Stocks to Buy According to Greg Martinez’s Parkman Healthcare Partners

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·10 min read
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In this article, we discuss the 10 best healthcare stocks to buy according to Greg Martinez's Parkman Healthcare Partners. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Healthcare Stocks to Buy According to Greg Martinez's Parkman Healthcare Partners.

Greg Martinez has been the portfolio manager and managing member at Parkman Healthcare Partners since April 2019, which is a Connecticut-based healthcare focused investment firm. Martinez manages a portfolio valued at over $395 million at Parkman Healthcare Partners, in addition to assets under management of $440 million, according to the Q3 13F filings.

Martinez completed his Bachelor’s in history and political science from Duke University, and earned an MBA from the Kellogg School of Management at Northwestern University, where he specialized in finance, strategy, and accounting. Throughout his tenure, Martinez has served across multiple investment management firms. He was the senior vice president at Pequot Capital from 2004 to 2008, switching to Diamondback Capital Management in 2008 as a portfolio manager. Martinez also worked at Norumbega Capital and Schonfeld Strategic Advisors as a portfolio manager over the years, before joining Parkman Healthcare Partners in 2019.

93.65% of the 13F securities at Parkman Healthcare Partners are concentrated in the healthcare, pharmaceutical, and life sciences industries. The firm purchased 11 new stocks, reduced holdings in 29 securities, made additional purchases in 18 companies, and sold out of 19 holdings, as of September this year. Martinez’s top buys for Q3 include Fulcrum Therapeutics, Inc. (NASDAQ:FULC), AbbVie Inc. (NYSE:ABBV), and Amgen Inc. (NASDAQ:AMGN), whereas, he reduced holdings in Intuitive Surgical, Inc. (NASDAQ:ISRG), Charles River Laboratories International, Inc. (NYSE:CRL), and Acceleron Pharma Inc. (NASDAQ:XLRN), among others.

The most notable stocks in George Martinez’s Q3 portfolio include AbbVie Inc. (NYSE:ABBV), Danaher Corporation (NYSE:DHR), United Therapeutics Corporation (NASDAQ:UTHR), and Avantor, Inc. (NYSE:AVTR), among others discussed in detail below.

Our Methodology

We used the Q3 portfolio of Greg Martinez's Parkman Healthcare Partners to select the top 10 healthcare stocks that the firm currently holds, ranking them according to the firm’s stake value in each holding.

Trong Nguyen / Shutterstock.com

Best Healthcare Stocks to Buy According to Greg Martinez's Parkman Healthcare Partners

10. Natera, Inc. (NASDAQ:NTRA)

Parkman Healthcare Partners’ Stake Value: $10,035,000

Percentage of Parkman Healthcare Partners’ 13F Portfolio: 2.53%

Number of Hedge Fund Holders: 50

Natera, Inc. (NASDAQ:NTRA) is a Texas-based genetic testing company, focused on improving treatments for women’s health, cancer, and organ health, via non-invasive DNA testing expertise. Greg Martinez holds a $10 million stake in Natera, Inc. (NASDAQ:NTRA) via Parkman Healthcare Partners, which accounts for 2.54% of the firm’s Q3 portfolio.

Natera, Inc. (NASDAQ:NTRA) posted on November 4 its Q3 results. EPS in the quarter came in at -$1.63, missing analysts’ consensus estimates by -$0.34. The $158.12 million revenue gained 61.11% on a year-over-year basis, and exceeded estimated revenue by $6.19 million.

Baird analyst Catherine Ramsey Schulte on November 5 raised the price target on Natera, Inc. (NASDAQ:NTRA) to $152 from $145 and kept an Outperform rating on the shares, stating that the core momentum of the stock remains strong despite COVID-19 pressures.

Samuel Isaly’s OrbiMed Advisors holds a $175.2 million stake in Natera, Inc. (NASDAQ:NTRA) as of Q3 2021, making it one of the leading stakeholders of the company. Overall, 50 hedge funds monitored by Insider Monkey were bullish on Natera, Inc. (NASDAQ:NTRA), down from 52 in the preceding quarter.

In addition to AbbVie Inc. (NYSE:ABBV), Danaher Corporation (NYSE:DHR), United Therapeutics Corporation (NASDAQ:UTHR), and Avantor, Inc. (NYSE:AVTR), Natera, Inc. (NASDAQ:NTRA) is a notable stock from George Martinez’s Q3 investment portfolio.

Here is what Baron Funds has to say about Natera, Inc. (NASDAQ:NTRA) in its Q3 2021 investor letter:

“We initiated a position in Natera, Inc., a diagnostics company with a cell free DNA platform that enables it to detect tiny amounts of DNA in a blood sample. Natera first applied its technology platform to women’s health, where the company markets a blood test that can detect fetal DNA in the blood of pregnant women, enabling early detection of chromosomal abnormalities with a non-invasive test. Through the strength of its technology platform, clinical data, and customer service, Natera has established itself as a market leader in non-invasive prenatal testing. Natera is seeing tailwinds in its women’s health business from recently expanded insurance coverage for average risk pregnancies. Natera is now applying its technology platform to other markets, including the oncology market and the organ transplant market. In the oncology market, Natera offers a personalized blood-based DNA test called Signatera, which detects and quantifies how much residual cancer DNA remains in the body after surgery. Signatera helps physicians determine whether chemotherapy is necessary after surgery and monitor for cancer recurrence before the cancer is detectable with standard imaging. We think Signatera will change the standard of care and is in the early innings of adoption in a market we estimate to be over $15 billion. We think Natera has a long runway for growth with expanding margins and profitability.”

9. Charles River Laboratories International, Inc. (NYSE:CRL)

Parkman Healthcare Partners’ Stake Value: $10,317,000

Percentage of Parkman Healthcare Partners’ 13F Portfolio: 2.61%

Number of Hedge Fund Holders: 46

Charles River Laboratories International, Inc. (NYSE:CRL), a pharmaceutical company offering biologics testing, vaccine services, microbial solutions, and preclinical testing, is one of the top stock picks of George Martinez from the third quarter, with his investment firm owning 25,000 Charles River Laboratories International, Inc. (NYSE:CRL) shares, worth $10.31 million, accounting for 2.61% of the firm’s Q3 portfolio.

Charles River Laboratories International, Inc. (NYSE:CRL), on November 3, posted its Q3 earnings. EPS in the third quarter amounted to $2.70, outperforming estimates by $0.12. Revenue for the company equaled $895.54 million, up 20.54% year-over-year, yet missing estimates by -$6.21 million.

After the Q3 performance, on November 16, Deutsche Bank analyst George Hill raised the price target on Charles River Laboratories International, Inc. (NYSE:CRL) to $409 from $354 and kept a Buy rating on the shares.

The leading stakeholder of Charles River Laboratories International, Inc. (NYSE:CRL) as of Q3 2021 is Gabriel Plotkin’s Melvin Capital Management, with 375,000 shares worth almost $155 million. Overall, 46 funds out of the 867 elite hedge funds monitored by Insider Monkey as of September were bullish on Charles River Laboratories International, Inc. (NYSE:CRL), up from 44 funds in the preceding quarter.

Here is what ClearBridge Investments has to say about Charles River Laboratories International, Inc. (NYSE:CRL) in its Q2 2021 investor letter:

“The Strategy also received strong contributions from several companies in the health care sector. Charles River Laboratories provides products and services to support pharmaceutical and biotechnology clinical research. The market reacted positively to the company’s announced acquisition of Vigene Biosciences, a gene therapy development and manufacturing company, which will allow Charles River to expand its cell and gene therapy portfolio.”

8. Seagen Inc. (NASDAQ:SGEN)

Parkman Healthcare Partners’ Stake Value: $12,340,000

Percentage of Parkman Healthcare Partners’ 13F Portfolio: 3.12%

Number of Hedge Fund Holders: 40

Seagen Inc. (NASDAQ:SGEN) is a biotech company from Washington, working on revolutionizing oncology treatments and care, via developing monoclonal antibody-based therapies for cancer. Greg Martinez holds a $12.34 million position in Seagen Inc. (NASDAQ:SGEN) as of September this year, which accounts for 3.12% of his total investments at Parkman Healthcare Partners. Martinez increased his stake in Seagen Inc. (NASDAQ:SGEN) by 61% in Q3, as compared to the preceding quarter.

On October 28, the Q3 EPS for Seagen Inc. (NASDAQ:SGEN) totaled -$1.61, missing estimates by -$1.04. The $424.06 million revenue was down almost 60% from the prior-year quarter, but outperformed estimated revenue by $38.91 million. Wolfe Research analyst Andrew Galler on November 8 initiated coverage of Seagen Inc. (NASDAQ:SGEN) with a Peer Perform rating and a $195 price target.

As of the third quarter of 2021, 40 hedge funds in the database of Insider Monkey were bullish on Seagen Inc. (NASDAQ:SGEN), with stakes amounting to $9.4 billion. This is an increase as compared to Q2, with 37 funds owning stakes worth $8.7 billion in Seagen Inc. (NASDAQ:SGEN).

Here is what Carillon Tower Advisers has to say about Seagen Inc. (NASDAQ:SGEN) in their Q4 2020 investor letter:

“Seagen is a biotechnology company engaged in the development and commercialization of monoclonal antibody-based therapies for the treatment of cancer. The stock slumped a bit in the quarter after the firm announced it was lowering guidance for its drug Adcetris, which is an antibody medication used to treat lymphoma. We remain optimistic on the stock, primarily due to the company’s appealing pipeline of new products as well as the continued growth of Padcev (for metastatic urothelial cancer) and Tucatinib (for breast cancer).”

7. Danaher Corporation (NYSE:DHR)

Parkman Healthcare Partners’ Stake Value: $13,798,000

Percentage of Parkman Healthcare Partners’ 13F Portfolio: 3.49%

Number of Hedge Fund Holders: 74

Danaher Corporation (NYSE:DHR) is a conglomerate involved in the life sciences industry, diagnostics, and environmental and applied solutions. As of Q3 2021, Greg Martinez’s Parkman Healthcare Partners holds 45,324 shares in Danaher Corporation (NYSE:DHR), valued at $13.79 million, representing 3.49% of the firm’s total securities.

Fisher Asset Management holds a leading stake in Danaher Corporation (NYSE:DHR), with 3.44 million shares worth over $1 billion. Overall, 74 hedge funds monitored by Insider Monkey reported owning stakes worth $6.94 billion in Danaher Corporation (NYSE:DHR) as of September this year.

The Q3 earnings were announced on October 21 by Danaher Corporation (NYSE:DHR). EPS for the third quarter amounted to $2.39, topping estimates by $0.24. The $7.23 billion revenue was up 22.88% from the previous-year quarter, outperforming analysts’ consensus estimates by $226.84 million.

On October 22, Baird analyst Catherine Schulte raised the price target on Danaher to $340 from $305 and kept an Outperform rating on the shares. The analyst observed that company management raised 2021 guidance owing to market share and competitiveness, normalized customer activity, and solid funding environments.

Here is what ClearBridge Investments has to say about Danaher Corporation (NYSE:DHR) in its Q2 2021 investor letter:

“Our differentiated positions in the health care sector also made strong contributions as the market began to reward the heavily discounted sector. Danaher, for example, is seeing customer activity approach pre-pandemic levels and is executing well. In addition to improving health through its life sciences (research tools for biopharmaceutical, food and beverage, medical, aerospace and microelectronics industries) and diagnostics (tools for use in labs and critical care settings) businesses, Danaher offers environmental and applied solutions that keep global food and water supplies safe.”

6. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)

Parkman Healthcare Partners’ Stake Value: $14,155,000

Percentage of Parkman Healthcare Partners’ 13F Portfolio: 3.58%

Number of Hedge Fund Holders: 40

Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), a company focused on RNA interference therapeutics for genetically defined diseases, is one of Greg Martinez’s top stock picks from the third quarter. Parkman Healthcare Partners holds 74,967 shares in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), worth $14.1 million, representing 3.58% of the firm’s Q3 portfolio.

Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), on October 28, posted Q3 earnings. The EPS totaled -$1.72, missing estimates by -$0.15. Revenue for the quarter came in at $187.63 million, up 49.09% from the prior-year quarter, yet missed estimated revenue by -$31.06 million.

Needham analyst Joseph Stringer on November 22 raised the price target on Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) to $205 from $180 and kept a Buy rating on the shares, stating that the company’s balance sheet is strong, and the top and bottom line is improving.

Eli Casdin’s Casdin Capital holds a leading position in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), with 1 million shares amounting to $188.8 million. As per Insider Monkey’s Q3 database, a total of 40 hedge funds were bullish on Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), up from 33 funds in the preceding quarter.

In addition to AbbVie Inc. (NYSE:ABBV), Danaher Corporation (NYSE:DHR), United Therapeutics Corporation (NASDAQ:UTHR), and Avantor, Inc. (NYSE:AVTR), Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is a notable stock from George Martinez’s Q3 investment portfolio.

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Disclosure: None. 10 Best Healthcare Stocks to Buy According to Greg Martinez's Parkman Healthcare Partners is originally published on Insider Monkey.