Health care reform it's finally done and decided upon. And
regardless of your personal feelings about healthcare reform, as an
investor you need to make sure you leave your politics at the door
and simply focus on the opportunity. And the biggest opportnity
right now is in health insurance stocks and service providers --
Medco Health Solutions
My current fundamental analysis of the 12 largest health care
providers and health services stocks (by market cap) shows not a
single sell recommendation among this group of stocks. As a whole,
this industry seems to have a number of stocks with big potential
based on this week's latest Portfolio Grader rankings.
Personally I would rather this reform hadn't happened -- but I
would also rather see U.S. unemployment about half of what it's at.
Sometimes you have to play the hand you're dealt. On a broader
note, one of the unintended consequences of the massive health care
reform measure that was signed into law by President Obama last
week will be that the U.S. economy must now must absorb the coming
2011 tax increase and a substantial 3.8% Medicare tax increase in
2013. This will impact both large and small businesses. As a
result, the Fed is likely to keep interest rates low through at
But regardless of the longer term trends, the data my team of
analsysts crunched over the weekend indicates that that the 12
largest health provider and service stocks as a group look very
healthy indeed. The complete sector breakdown is below.
Portfolio Grader, my FREE stock ranking tool
, offers updated recommendations each week on about 5,000 publicly
traded stocks. The database is updated every Monday morning to give
you the latest info on the hottest Wall Street companies. You can
get access to PortfolioGrader at InvestorPlace.com by clicking on
my bio under the "our experts" heading at the top of any page.
): Market cap of $8.1B, rated an A for "Strong Buy"
): Market cap of $14.8B, rated a C for "Hold"
Cardinal Health Inc.
): Market cap of $12.8B, rated a B for "Buy"
): Market cap of $9.8B, rated a B for "Buy"
Quest Diagnostics Inc.
): Market cap of $10.6B, rated a C for "Hold"
Express Scripts Inc.
): Market cap of $27.7B, rated an A for "Strong Buy"
Fresenius Medical Care
): Market cap of $16.3B, rated a B for "Buy"
): Market cap of $8.0B, rated an A for "Strong Buy"
): Market cap of $17.1B, rated a B for "Buy"
Medco Health Solutions
): Market cap of $30.9B, rated an A for "Strong Buy"
): Market cap of $37.4B, rated a C for "Hold"
): Market cap of $28.4B, rated a B for "Buy"