Last year was a difficult one for health care stocks, partially
due to investors' concerns over the federal health care debate. But
2011 is shaping up to be a whole different story for health care
stocks. The sector has outpaced the S&P 500, up 6.3% in the
first quarter compared to 4.2% for the broad market index.
But this does not mean all health care stocks are a good
investment right now. In fact, some very established, well-known
names have been underperforming the sector, as well as the overall
market. Most have declined significantly in the past 12 months, and
they have fallen as much as 7% year-to-date.
There's simply no room in your portfolio for this kind of
lackluster performance, so check out our list of health care stocks
Health Care Stock to Sell #1 Johnson & Johnson (JNJ)
Known around the world for its range of brand-name consumer
health care products,
Johnson & Johnson
) is also starting to become known for its poor stock performance.
In the past year, shares of JNJ are down almost 9%, and
year-to-date, the big pharma stock is off more than 4%. The
company's quarterly earnings growth was down 12% year-over-year in
its last income statement.
Health Care Stock to Sell #2 Merck & Co (MRK)
Merck & Co Inc.
) has shown lackluster performance, falling 7%. In the past 12
months, the company known for its prescription medicines, vaccines,
biologic therapies, animal health and consumer care products, has
watched its stock decline almost 9%, compared to an 11%-plus gain
for the Dow Jones Industrial Average.
Health Care Stock to Sell #3 Sanofi-Aventis (SNY)
Researcher, developer, manufacturer and marketer of health care
), is another pharmacy stock having a rough year. Over the past 12
months, SNY stock has dropped 1%, compared to gains by the broader
markets. More alarming is SNY's quarterly earnings growth, which
was reported as -67% in its last income statement.
Health Care Stock to Sell #4 Abbott Laboratories (ABT)
Since reaching a high in mid-October,
) has experienced a slip in stock price of 4%. Known for
discovering, developing, manufacturing and selling health care
products, ABT just posted a quarterly earnings growth of -6% in its
most recent income statement.
Health Care Stock to Sell #5 Amgen (AMGN)
Independent biotechnology company
) shares have slid 1% since the start of 2011, and are down 10% in
the past 12 months. It appears this former high-flier's days of
rapid growth are behind it. The stock is down some 20% from where
it was trading five years ago. During the same period, the
SPDR S&P Biotech
) has risen more than 40%.
Health Care Stock to Sell #6 Teva Pharmaceutical
Next on the list is generic drug developer
Teva Pharmaceutical Industries Ltd.
). TEVA has had an awful year, and is down 22% since last April.
More recently, this stock lost 6% over the past four months. TEVA
is trading just above its 52-week low of $46.99.
Health Care Stock to Sell #7 Medtronic (MDT)
Founded in 1957, medical technology company
) has left shareholders with a bad taste in their mouths. In the
last year, this big pharma stock has watched its stock value
decrease 11%, compared to gains by the broader markets. Since the
middle of February, MDT is down 2%.
Health Care Stock to Sell #8 Gilead Sciences (GILD)
After one look at
Gilead Sciences Inc.'s
) income statement, investors should be selling this stock. Last
quarter, the biopharmaceutical company, which focuses on the
development and commercialization of human therapeutics for life
threatening diseases, reported a quarterly revenue growth of -2%
and a quarterly earnings growth of -22%. A drop in stock price of
almost 5.5% in the past year doesn't bode well either.
Health Care Stock to Sell #9 Baxter International (BAX)
Global diversified health care company
Baxter International Inc.
) has slipped 7% in the last 52 weeks. Not helping matters, BAX
posted net earnings growth of -26% in its last income
Health Care Stock to Sell #10 Celgene (CELG)
Finishing off the list is
), which is known for discovering, developing and commercializing
therapies for cancer and immune-inflammatory-related diseases. In
the past 12 months, CELG has dropped 8%. More recently, CELG is
down 6% year-to-date, and the company reported a quarterly earnings
growth of -18% in its last income statement.