12 Biggest Health Providers Looking Fit

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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 -- particularly in AmerisourceBergen Corp. ( ABC ), Express Scripts ( ESRX ), Humana Inc. ( HUM ) and Medco Health Solutions ( MHS ).

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 least 2014.


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.

AmerisourceBergen ( ABC ): Market cap of $8.1B, rated an A for "Strong Buy"

Aetna Inc. ( AET ): Market cap of $14.8B, rated a C for "Hold"

Cardinal Health Inc. ( CAH ): Market cap of $12.8B, rated a B for "Buy"

CIGNA Corp. ( CI ): Market cap of $9.8B, rated a B for "Buy"

Quest Diagnostics Inc. ( DGX ): Market cap of $10.6B, rated a C for "Hold"

Express Scripts Inc. ( ESRX ): Market cap of $27.7B, rated an A for "Strong Buy"

Fresenius Medical Care ( FMS ): Market cap of  $16.3B, rated a B for "Buy"

Humana Inc. ( HUM ): Market cap of $8.0B, rated an A for "Strong Buy"

McKesson Corp. ( MKC ): Market cap of  $17.1B, rated a B for "Buy"

Medco Health Solutions ( MHS ): Market cap of $30.9B, rated an A for "Strong Buy"

UnitedHealth Group ( UNH ): Market cap of $37.4B, rated a C for "Hold"

WellPoint ( WLP ): Market cap of $28.4B, rated a B for "Buy"

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks


Louis Navellier

Louis Navellier

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